The Government of India is close to finalizing a ₹160 billion (~$2.5 billion) hydropower development fund.
“The Centre is set to finalize the creation of a ₹160 billion (~$2.5 billion) hydropower development fund to revive stalled projects in the country, a top government official said.”
Central Electricity Authority’s member (Hydro) K.K. Arya, said, “there was a meeting by the Cabinet Secretary and meetings with bankers, developers and regulators are going on. The policy is in its final stages and would include a proposal for considering hydropower as renewable energy,” at an Energy Conclave, organized by the Confederation of Indian Industry (CII).
Despite the government opting for public-private partnerships for many of the hydropower projects, many still face impediments across various stages of a project development lifecycle. India has large hydropower reserves that are estimated to meet a demand of around 85 GW at a 60 percent load factor, but the total installed capacity of large hydropower projects (with a capacity greater than 25 MW) is only about 45 GW.
Yesterday, the Ministry of New and Renewable Energy (MNRE) issued a letter addressing all small hydro project developers, providing an opportunity for these developers to claim central financial assistance.
At the Power Ministers’ conference held in October 2016 in Goa, it was proposed to grant hydropower with renewable energy status. It was also decided that a separate renewable energy purchase obligation (RPO) should be set up for the hydropower sector with state incentives to meet RPO compliance.
Mercom previously reported, with inclusion of hydropower, renewable energy will account for almost 30 percent of India’s total installed power capacity and it would help the country meet the Paris Climate Agreement goal of generating 40 percent of its electricity from renewable energy sources by 2030.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.