MoP notifies hydropower purchase obligation

The ministry of power (MoP) has issued a revised trajectory of renewable purchase obligation (RPO), including a long-term trajectory for hydropower purchase obligation (HPO) for large hydropower projects commissioned after March 8, 2019. This is in line with the government measures announced in 2019 to promote large hydro and achieve the target of 30 GW of hydropower by 2029-30. …

As per the notification, the RPO has been calculated in energy terms as a percentage of total electricity consumption, excluding the consumption met from hydropower sources. The solar RPO target may be met by power produced from solar power projects. Other non-solar RPO (excluding HPO) may be met from any renewable source other than solar and large hydropower projects. The HPO benefits may be met from the power procured from large hydropower projects commissioned on and after March 08, 2019, and up to March 31, 2030, in respect of 70 per cent of the total generated capacity for 12 years from the date of commissioning. Further, free power is to be provided as per agreement with the state government. The power provided for the local area development fund will not be included within this limit of 70 per cent of the generating capacity. In case the free power is insufficient to meet the HPO obligations, then the state would have to buy the additional power to meet its HPO obligation or buy corresponding amount of hydro energy certificate.

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