Cabinet clears ₹5,070 crore scheme for 5 GW floating solar projects

The Pradhan Mantri Surya Sarovar Yojana will support 5 GW of floating solar projects with energy storage systems and central financial assistance until FY33

The Union Cabinet on Friday approved the Rs 5,070 crore Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a scheme to develop 5,000 megawatt (MW) of floating solar photovoltaic (FSPV) projects with co-located energy storage systems (ESS) having a minimum storage capacity of two hours or 10,000 megawatt-hours (MWh).

 

The projects will be sanctioned between the current financial year and 2030-31, with the disbursement of financial support continuing until 2032-33.

 

The National Institute of Solar Energy (NISE) has estimated a floating solar potential of nearly 102.18 gigawatts (GW) across reservoirs and other suitable inland water bodies in the country.

 

Under the scheme, the government will provide central financial assistance (CFA) of Rs 1 crore per MW for eligible FSPV projects after successful commissioning. Additionally, up to Rs 50 lakh per project will be available for undertaking feasibility studies, including bathymetry and hydrography assessments, environmental studies and other preparatory activities required to de-risk project development, it said.

 

 

At present, floating solar power capacity in the country stands at around 700 MW. The Omkareshwar Floating Solar Park, located in Khandwa district of Madhya Pradesh, has a capacity of 600 MW. Built with an estimated Phase-I core cost of Rs 330 crore and supported by CFA of Rs 49.85 crore, around 278 MW of the project is operational.

 

“These projects would provide an opportunity to gainfully utilise existing reservoirs and industrial ponds, and eliminate competition for scarce land resources. The integration of an energy storage system will help strengthen grid reliability,” the government said in a statement.

 

It added that the scheme will help reduce around 10 million tonnes of carbon dioxide emissions annually and generate 16,000–17,000 full-time equivalent employment opportunities across the project value chain.

 

The scheme will also promote domestic manufacturing of flotation systems, as well as the broader project value chain.