Connect with us

Hi, what are you looking for?

India x CleanTech

Policy & Politics

India Proposes Mandatory Procurement of Hydro Electricity

After re-classification of hydro power as a renewable energy technology, the Indian government is planning to mandate procurement from hydro power projects.

After re-classification of hydro power as a renewable energy technology, the Indian government is planning to mandate procurement from hydro power projects.

India x CleanTechAccording to media reports, the Indian government has proposed an amendment to the Electricity Act calling for the implementation of hydropower purchase obligation (HPO). If implemented, this new amendment will required electricity retailers to purchase a minimum percentage of their electricity demand from hydro power projects.

The HPO will be implemented in addition to the existing Renewable Purchase Obligation (RPO) which requires electricity retailers to purchase a minimum percentage of electricity from solar and non-solar renewable energy technologies. India has set a target to have 21% of its electricity being generated from renewable energy technologies by 2021. This includes 10.5% electricity from solar power projects.

The government has not yet specified the minimum percentage of electricity that electricity retailers would be required to procure from hydro power projects. Experts have welcomed this move claiming that an increased share of hydro power in the grid would help grid operators manage the intermittent nature of solar and wind power.

For decades India considered hydro power projects over 25 megawatts in capacity as conventional power projects. Over the last few years, however, there has been an effort by various ministries in the government to re-classify even large hydro power projects as renewable energy projects. Almost all other countries treat all hydropower as a renewable energy resource.

Another reason for this re-classification is that it will have an immediate impact on India’s renewable energy trajectory. India has committed to have 175 gigawatts of renewable energy capacity by December 2021. As on 31 March 2020, India had just over 88 gigawatts of operational renewable energy capacity, excluding large hydro power projects. If large hydro power projects are added to this tally, India renewable energy capacity would increase to over 133 gigawatts. This would bring the 175 gigawatt target well within reach.

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

An avid follower of latest developments in the Indian renewable energy sector.


You May Also Like


We've already manufactured an awful lot of steel. There are hundreds of billions of tons of the stuff lying around, much of it obsolete.

Clean Transport

Lithium, lithium, lithium — as much as we cover the lithium market, there’s much more to cover. The lithium market is jumping. Below are...

Clean Power

Berkeley Lab study shows how deep cost reductions in clean technology and India’s renewable and lithium edge can enable a pathway for cost-effective energy...

Green Economy

India’s central bank is expected to raise $3 billion through sale of green bonds over the next 12 months.  The Reserve Bank of India...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.