Report on removal of 25 Mw renewable cap on hydro projects soon

India's renewable capacity may touch 225 Gw by 2022 if larger hydro projects are treated as renewable: Piyush Goyal

A report on removing the 25 Mw cap for hydro power projects to treat it as renewable would be put out soon for public consultation.

"India's renewable energy capacity could touch 225 Gw by 2022 if hydroelectricity is added to the renewable category as is being done the world over," Goyal told PTI after his visit to the city and Limkheda in Dohad yesterday.

"It is only in India where hydro projects below 25 Mw are considered renewable and those above are considered non-renewable. I had asked officials to look into removing this distinction," he said.

The report is almost complete and will soon be put out for public consultation, he said.

The minister visited Limkheda for reviewing arrangements for the visit of Prime Minister Narendra Modi tomorrow for launching several tribal welfare schemes, including providing drinking water facilities.

During his visit to Vadodara, Goyal met officials of the state government and Gujarat Urja Vidyut Nigam which along with Union Power Ministry will host the international Switch conference on energy sector here from October 6 to 10.

A comprehensive policy to promote hydropower generation is likely to be announced soon with viability gap funding for projects, compulsory hydropower purchase obligations for distribution companies and a set of good practices that states have to follow.

The idea is to address factors that drive hydropower costs up way above those of other sources of power and give policy support in its market development.

The ministry will also expand the scope of power distribution companies' renewable power purchase obligations to include hydropower from projects with a capacity greater than 25 Mw. At present, only power from those with less than 25 Mw is considered renewable.

Goyal had earlier said that the new hydropower policy will be comprehensive.

"It will explore the possibility of providing to hydroelectric projects beyond 25 Mw the benefits that are at present available to renewable energy," he said.