Ministry of Power introduces Hydro power purchase obligation
With the objective to add 30,000 MW of hydropower capacity by the year 2029-2030, the Ministry of power(MoP) has announced a revised trajectory of RPO. Under the new trajectory, MoP introduces the Hydro power purchase obligation(HPO) considering the Large Hydro power projects(LHPs) commissioned after 8th March, 2019.
The ministry of power specifies the following RPO trajectory:
|
Year
|
Solar RPO
|
Non Solar RPO |
Total RPO
|
||
| HPO | Other Non Solar RPO | Total Non Solar RPO | |||
| 2019-20 | 7.25% | – | 10.25% | 10.25% | 17.50% |
| 2020-21 | 8.75% | – | 10.25% | 10.25% | 19.00% |
| 2021-22 | 10.50% | 0.18% | 10.50% | 10.68% | 21.18% |
| 2022-23 |
To be specified later
|
0.35% |
To be specified later
|
To be specified later
|
To be specified later
|
| 2023-24 | 0.66% | ||||
| 2024-25 | 1.08% | ||||
| 2025-26 | 1.48% | ||||
| 2026-27 | 1.80% | ||||
| 2027-28 | 2.15% | ||||
| 2028-29 | 2.51% | ||||
| 2029-30 | 2.82% | ||||
Compliance Rules:
For Solar RPO; The compliance to the extent of 85% and above, remaining shortfall, if any, can be met by excess non solar energy consumed beyond specified Non solar RPO for that particular year.
For Non Solar RPO; the compliance to the extent of 85% and above, remaining shortfall, if any, can be met by excess solar energy or eligible hydro energy consumed beyond specified solar RPO or HPO for that particular year.
Similarly, For HPO; the compliance to the extent of 85% and above, the remaining shortfall, if any, can be met by excess solar energy or other non solar energy consumed beyond specified solar RPO or Non solar RPO for that particular year.
It is important to note that for the compliance of HPO, CERC is going to develop the Hydro energy certificate mechanism. To ensure HPO compliance under this mechanism, it would have a capping price of INR 5.50/unit of electrical energy w.e.f. 8th March 2019 to 31st March 2021 with 5% of annual escalation.
As per the government order dated 8th March 2019, Large hydro power projects having capacity of more than 25 MW (LHPs) which come into operation after 08.03.2019 will be considered for Hydro power purchase obligation(HPO) within Non Solar Renewable Purchase Obligation(RPO).