The power ministry has sought Cabinet approval for a policy change categorising large hydro projects as renewable energy sources. Currently, only hydro projects under 25 MW are identified as renewable energy.
Apart from helping the country attain the target of having 175 GW renewable capacity by 2022, the renewable energy tag would help hydro power get a priority over thermal electricity while being dispatched to the consumers. The hydro sector would also get additional leg-up as the states can fulfill their mandatory renewable purchase obligations by buying electricity from these power plants.
The power ministry note, reviewed by FE, also seeks the Cabinet approval for introducing a separate ‘hydropower purchase obligation’ category.
To reduce hydro-power tariffs, the ministry also wants the cabinet to approve, modify existing norms and not let the host states receive free power from hydro power plants till five years from commissioning. As per existing provisions, developers have to contribute 12% free power to state governments. Read More
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