As a measure to promote hydropower sector in general, and large hydropower in particular, the union cabinet of India declared large hydropower projects as part of non-solar renewable purchase obligation (RPO). Currently, hydropower projects less than 25 MW capacity are categorized as renewable and above 25 MW are considered conventional plants. India is not the first country to consider all hydropower plants as renewable. Countries such as China and Brazil also consider all hydropower plants as renewable energy.
The details of the cabinet approval are as follows –
- Large hydropower projects to be declared renewable.
- Large hydropower projects are considered as separate entities within non-solar RPO to cover large hydropower projects commissioned after notification of these measures.
- Annual large hydropower targets will be notified by the Ministry of Power.
- Necessary amendments will be introduced in the tariff policy and tariff regulations.
- Tariff rationalization measures - provide flexibility to developers to determine tariff by back loading of tariff after increasing project life to 40 years, increasing debt repayment period to 18 years and introducing tariff escalation of 2%.
- Budgetary support for flood modernization component of hydropower projects
- Budgetary support for funding cost of enabling infrastructure, limited to INR15m/MW for projects up to 200 MW and INR10m/MW for projects above 200 MW.
An overview of the Indian Union Cabinet’s decision to include large hydropower under renewables.
Provides information on India’s climate goals and detailed overview of hydropower and renewable power sector.
Discusses what impact the addition of large hydropower would have on India’s targets assigned as nationally determined contributions (NDCs) under the Paris Agreement.
Reasons to buy
Gain insight into the Indian government’s decision to consider all hydropower plants under renewables.
Understand India’s climate goals, cumulative installed capacity by type of the hydropower sector and renewable installed capacity share in total power during the period 2010–2018.
Facilitate decision-making based on India’s hydropower market scenario.