State govts may soon get hydro power purchase targets

The Centre will be notifying the quantum of obligations for hydropower till 2030

Electricity requirement, Hydro power plants, Union Ministry of Power, Hydro power procurement targets, Renewable energy purchase obligations, Discoms, Power Purchase Agreements, Power regulator, Central Electricity Regulatory Commission, CERC, Renewable certificates, Hydroeletric stations, Power grid stability

The Centre will soon make it mandatory for states to meet part of their electricity requirement from hydro power plants. The Union Ministry of Power is soon likely to notify guidelines giving states hydro power procurement targets on the lines of renewable energy purchase obligations.

The Centre will be notifying the quantum of obligations for hydropower till 2030 on discoms. This will be given only to projects commissioned after 9 March 2019 and those plants which did not have power purchase agreements (PPA) on that date.

Power regulator Central Electricity Regulatory Commission (CERC) is likely to issue directions on trading of hydroelectric certificates like renewable certificates that will enable discoms with more hydro generation to trade with discoms which do not have access to such plants.

The trajectory for hydro power obligation will be notified for discoms up to 2030, against two-three years in case of renewable energy projects.

Hydroeletric stations help in maintaining power grid stability with flexibility to ramp up and down generation as they take less time to start and stop as compared to other sources of power production. Hydropower stations are being considered as compliment to India’s largescale renewable energy addition programme.

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