States Agree In Principle To Bring Hydro Power Projects Under Renewable Energy Fold, Proposal To Soon Go For Cabinet Approval

Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have been asked to work out a mechanism in which the small hydro power projects (presently lying stressed and stalled in the country) can be resolved and identify those which are viable for being re-started.

States Agree In Principle To Bring Hydro Power Projects Under Renewable Energy Fold, Proposal To Soon Go For Cabinet Approval

An in-principle agreement has been reached with the states to declare hydel power as renweable power, said union power minister Piyush Goyal, who is also the minister of RE, coal and mines.

“By and large a consensus has been made with the states that hydro power should be declared as renewable power and a seperate renewable purchase obligation (RPO) for hydro should be set up…we will deliberate and come out with a new proposal before it goes to the Cabinet for its approval and required amendments to our long term renewable energy goals would also be made…Large hydro power will also be brought under renewable energy,” Goyal said after the two days conference of state power ministers at Vadodara.

The minister said he has further asked Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to work out a mechanism in which the small hydro power projects (presently lying stressed and stalled in the country) can be resolved and identify those which are viable for being re-started.

Goyal said all stalled and stressed hydro power projects will be resolved in a mission mode and government will look at new mechanisms to get low cost long term funds for these projects such as from green climate funds and other sources. “We will take all the 22 large stalled hydel power projects and look individually into the reasons to resolve the same in the next three months and see how to renew investors interest in the hydro sector,” the minister said.

He clarified that by adding hydro power projects under RE, it should not be thought that we are trying to squeeze our targets of 175 GW of RE addition by 2022. Rather, he added that by making hydro power as part of RE, our targets will stand revise to 225 GW by 2022. He also stated that hydel power projects are part of the RE portfolios worldwide.

READ  Global Crude oil price of Indian Basket was US$ 54.30 per bbl on 04.01.2017

Leave a Reply

Your email address will not be published.