The Union Cabinet on Wednesday approved the Rs 1.86 lakh crore PM-Dhara scheme. The plan aims to build a transmission system within the state with 50 GWh of battery storage to harness 135 GW of renewable energy. The full name of PM-DHARA is ‘PM-Developing Harmonized and Accelerated Renewable-energy Access’ (PM-DHARA). The scheme is very important considering India’s ambitious target of achieving 500 GW of renewable energy capacity by 2030.

Provision for establishment of BESS

According to an official statement, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the PM-Dhara scheme. The initiative will strengthen India’s ‘Intra-State Transmission System’ (InSTS) to push up to 135 gigawatts (GW) of renewable energy across all states/UTs. The scheme also provides for installation of 50 GWh Battery Energy Storage System (BESS) at the Renewable Energy (RE) Developer/Generator end or any other required location for grid flexibility. This will eliminate problems like intermittent supply, congestion, peak-hour drop and demand during non-solar hours. The scheme will facilitate the process of grid integration and power evacuation in the states/UTs of India.

What is the budget of the plan?

The scheme is targeted to be completed by the financial year 2032-33. The total project cost for this is Rs. 1,86,405 crore has been fixed. It includes development of Intra-State Transmission System (INSTS) under GEC-III Rs. 1,36,378 crore and for 50 GWh Battery Energy Storage System (BESS) Rs. 50,000 crores included. In this scheme a total of Rs. 54,082 crore including central financial assistance. Central Financial Assistance (CFA) will help reduce intra-state transmission charges and thus keep the cost of electricity low. Thus, the benefit of this help from the government will eventually reach the end users i.e. the citizens of India. Under the InSTS component, all greenfield projects will be executed through Tariff-Based Competitive Bidding (TBCB) mode, while brownfield upgradation and network strengthening works will be completed under cost-plus basis (CPB).

Jobs will be created

State transmission utilities will be the main implementing agencies, and transmission service providers (TSPs) will operate on a build-on-operate-maintain (BOOM) model under the TBCB. The scheme will help achieve the target of achieving 900 GW of non-fossil capacity by 2035. The scheme will also contribute to the country’s long-term energy security and promote environmentally sustainable development by reducing the carbon footprint. This will create massive direct and indirect employment in the power sector, manufacturing and construction industries. Manufacturing and installation of Battery Energy Storage System (BESS) will also create employment in the local energy storage industry. The scheme will also create long-term skilled employment in the fields of operation, maintenance and grid management in the participating states.