The Ministry of Power (MoP) has sought approval from the cabinet for a policy change to categorise large hydro projects as renewable energy projects. Currently, hydro projects under 25 MW (small hydro) are identified as renewable energy projects. The MoP has also sought in-principle approval to allow infrastructure costs that are not directly related to power generation, such as construction of roads, bridges and flood moderation infrastructure to be excluded from the calculation of electricity tariffs for hydro projects. Moreover, the ministry has sought the cabinet’s approval for introducing a separate “hydropower purchase obligation” category.
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