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August 1, 2013

Indian Government plans to introduce Hydro Purchase Obligations (HPO) for the Distribution Utilities...

 

hydro purchase obligation

The Indian Government is planning to promote the installation of hydro power projects by making it mandatory for the Distribution Utilities to purchase certain percentage of their electricity requirement from hydro projects.

This is similar to the exiting mandate of Renewable Purchase Obligations (RPO) wherein the Obligated Entities have to meet  certain percentage of their electricity requirement from Renewable Energy projects either through purchase of electricity or Renewable Energy Certificate (REC) from the exchanges.

However currently, the RPOs were segregated in Solar RPO and Non-Solar RPO; the proposal if approved will add a new dimension to the same in the from of Hydro RPO or Hydro Purchase Obligations (HPO).

Further, if implemented, the move will benefit the companies having large hydro power project such as National Hydro Power Corporation, Satluj Jal Vidyut Nigam Limited, Jaypee PowerGMR Energy and Reliance Power Limited.

 


Additional Reading...

http://economictimes.indiatimes.com/news/news-by-industry/energy/power/government-plans-to-make-hydro-power-purchase-mandatory-for-discoms-jyotiraditya-scindia/articleshow/21525240.cms


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