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Power Minister Unveils Comprehensive Plan to Boost Hydro Power and RE Capacity

The Ministry of Power has issued guidelines to promote PSP development, emphasizing their utility in grid stabilization and meeting peak power demand.

December 28, 2023. By Abha Rustagi

The Union Minister for New & Renewable Energy and Power, R.K. Singh, unveiled the government's comprehensive set of policy measures to enhance hydro power generation capacity, with a particular focus on Pumped Storage Projects (PSPs).

The measures, approved in March 2019, include the declaration of Large Hydro Power (LHPs) (> 25 MW projects) as a renewable energy source, the introduction of Hydro Purchase Obligation (HPO), and tariff rationalization measures to reduce hydro power tariffs.

Additionally, budgetary support has been allocated for Flood Moderation/Storage Hydro Electric Projects (HEPs) and the cost of enabling infrastructure, such as roads and bridges.

Waiver of Inter State Transmission System (ISTS) charges has been extended to PSPs for construction work awarded up to June 30, 2025, with a phased 25 percent waiver until July 1, 2028.

The Ministry of Power has issued guidelines to promote PSP development, emphasizing their utility in grid stabilization and meeting peak power demand.

The Central Electricity Authority has also published revised guidelines for the formulation and concurrence of Detailed Project Reports (DPRs) for PSPs, reducing the timeline for specific categories, including those awarded under section 63 of the Electricity Act, 2003.

Details of operational and under-construction PSPs were provided, with four projects totaling 2780 MW currently under construction, including the Tehri Pumped Storage Scheme (1000 MW) in Uttarakhand. Two PSPs with an aggregate capacity of 2350 MW have received concurrence from the Central Electricity Authority and are awaiting construction.

A staggering 43 PSPs with a combined capacity of 55085 MW are under survey and investigation across various states, showcasing the government's commitment to expanding hydro power capacity.

Minister Singh also highlighted the overall electricity generation scenario in the country, indicating a growing share of renewable energy (RE). In the last three years, the share of RE in total generation has increased from 21.6 percent in 2021-22 to 23.3 percent in the current financial year (up to October 2023). Wind energy's contribution to total generation has risen from 4.6 percent to 5.8 percent during the same period.

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Policies & Regulations

RK Singh

Minister of Power and New and Renewable Energy

Pumped Storage Project

Hydro Purchase Obligation

HPO

hydropower projects