IBEF: March 18, 2020
The total power generation from conventional fuel sources including hydro and renewable energy sources has registered a compound annual growth rate of 5.45 per cent from 1.17 billion units (BU) in 2015-16 to 1.38 BU in 2018-19. Stating this in a written reply in the Rajya Sabha today, Shri R.K. Singh stated that generation from hydro power projects mainly depends on the availability of water. Power generation from hydro sources has registered a compound annual growth rate of 3.3 per cent from 0.121 BU in 2015-16 to 0.134 BU in 2018-19. Hydro power generation has not been lowered down as part of any policy.
Realizing the need for development of hydropower projects, especially the pumped storage projects due to growing need of peaking and balancing power, Shri Singh said that Govt. of India have approved a number of measures in March, 2019 for promoting hydro power sector including, declaring large hydro power (LHPs) (>25 MW projects) as renewable energy source, mandating Hydro Purchase Obligation (HPO) as a separate entity within Non-solar Renewable Purchase Obligation (RPO) from new projects, tariff rationalization measures for bringing down hydro power tariff, budgetary support for Flood Moderation/Storage Hydro Electric Projects (HEPs) and towards cost of enabling infrastructure, i.e. roads/bridges. As a result of these measures, the capital cost as well as the project tariff would be reduced especially in initial years which would improve project viability & salability, and thus, promote the hydroelectric projects.
He added that although the generation of power depends on its demand, there is no decline in power generation from conventional sources including hydro. Generation of power from conventional sources has shown a compound annual growth rate of 4.09 per cent from 1.1 BU in 2015-16 to 1.25 BU in 2018-19.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.