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Renewable energy status for large hydel projects
Why is it in the news ?
- The Union Cabinet recently approved a new hydroelectricity policy that included large hydro projects within the ambit of renewable energy.
- The move will go a long way in meeting the targets set by the government for the sector.
More in the news
- To boost hydro power generation, the government 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.
Benefits:
- Large Hydro Projrcts would now be able to sell renewable energy certificates under non-solar Renewable Purchase Obligation (RPO) to discoms.
- The policy also provides for additional funds separately for infrastructure development as well as separate funds for the costs of flood moderation.
Official Data:
- India’s renewable energy sector had an installed capacity of 75,055.92 MW as of February 2019.
- This made up about 21.4% of the overall energy mix, with the rest coming from thermal, nuclear and large hydro sources.
- With the inclusion of large hydro in renewable energy, the energy mix changes drastically.
- Renewable energy capacity would now be 1,20,455.14 MW or 34.4% of the overall energy mix.
Variability in sources:
- The policy has meant a drastic change in the renewable energy mix as well.
- Whereas earlier, wind energy contributed nearly 50% of all renewable energy capacity, it will now make up only 29.3%.
- Similarly, solar energy’s share will fall from 34.68% to 21.61%.
- The hydro sector, however, will see its share grow from just over 6% to over 41%.
Source
The Hindu.