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Gujarat's New Agro Solar Policy Envisages Agricultural Consumer's Demand Curtailment, Will it Reduce Commercial Losses Too ?

News

Gujarat is going to become the first state in the country to launch 'Agro-Solar policy' under which farmers will be roped in to tap energy from sun which will also help them earn additional income from power generation companies.Farmers will get a supplementary income as revenue will be shared by the power generation companies. Besides, the companies will get good space for electricity generation, so there will be a win-win situation for both the sides 

Source : Economic Times

SNP Insights

Gujarat's discoms are one among best rated and performing discoms in India, where AT&C losses stands at 10 % with a declining trend. Being an agricultural state, with consumer mix of 30%.  state's revenue depends on agricultural productivity where discoms are accountable to extend their services to rural area meeting their needs. Complementary to it, agricultural consumer's are major contributors to commercial losses because of their inability to pay. Gujarat's attempt for nische Agro Solar policy will definitely be boon for farmers an discoms, where farmers could reduce their depencence of grid electricity as well as earn from sale of extra units. This may also ease out discom's effort in RAPDRP contribution in segregation of agricultural feeders to reduce commercial losses and agricultural accounting . Other agricultural states may also look out for similar effort alongwith net-metering policy to reduce commercial losses of respective discoms.

Source: SNP Infra Research