Now ‘Large Hydro Power Projects’ Will Also Enjoy Renewable Energy Status

In Clean News, Hydro, News, Renewable Energy

To boost hydro power generation, the government on Thursday approved a slew of measures including providing renewable energy status for large hydel projects and new funding provisions.

Earlier, hydro projects up to 25 MW capacity were considered as renewables and were eligible for various incentives like financial assistance and cheaper credit.

With the government’s decision, hydro projects above 25 MW can also avail the benefits now.

The Cabinet decision has also paved the way for adding hydro capacities of about 45 GW to the renewable energy basket of existing 74 GW which includes solar, wind and small hydro.

With the new measures, large hydro projects (LHPs) would be allowed back loading (reducing) of tariff after increasing project life to 40 years, increasing debt repayment period to 18 years and introducing escalating tariff of 2 per cent.

At present, hydro power tariff is expensive than other sources. These measure would help rationalise the tariff by hydro power projects.

Also, LHPs would now be able to sell renewable energy certificates under non-solar Renewable Purchase Obligation (RPO) to discoms.

Discoms are required to either purchase specified proportion of renewable energy or buy renewable energy certificates in lieu of that.

Reference- Mercom India, PIB, Economic Times, Business Standard

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