The state government plans to unveil a new solar power policy next month and phase out power purchase agreements (PPAs), which have become problematic forKarnatakabecause of excess production and must-use clauses.

There are no storage facilities for solar power, and the government finds it difficult to fulfil the rigid requirements of PPAs that were signed long back. At the same time, it has to utilise funds to keep conventional sources alive as a backup.

The energy department is working on a plan to utilise solar power for the operation of Irrigation pumpsets, offset must-use clauses in long-term PPAs and reduce power subsidies provided to farmers. There are two mechanisms. One is the old scheme of offline solar pumpsets. The other one that is being looked into is supplying solar power directly to Agriculture-notes-for-state-psc-exams”>Agriculture feeder lines rather than merging with commercial and domestic lines.