India includes hydropower from neighboring countries in renewable energy consumption

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India has announced that it will count hydropower purchased from neighboring countries as renewable energy consumption. This new policy will be implemented starting in 2024-25, and the Ministry of Electricity of India has published a notification in the Gazette on October 20, 2023.

Under the new policy, licensed distribution companies and buyers in India will be required to purchase a minimum amount of hydropower from neighboring countries. This will help India to meet its renewable energy targets, which are 29.91 percent by 2024-25 and 43.33 percent by 2029-30.

The new policy also specifies that only electricity produced from hydropower projects that are put into operation after March 31, 2024 will be counted towards the renewable energy consumption share. Distribution companies and electricity purchasers who do not comply with the new policy will be fined.

Nepal Electricity Authority Managing Director Kulman Ghising said that the new policy will benefit Nepal, India, and Bhutan. He said that Nepal has been asking India for a long time to include hydropower purchased from neighboring countries in the HPO, and now India has finally implemented this policy. This will make it easier for India’s electricity distribution companies and buyers to purchase electricity from hydropower projects in Nepal.

Ghising also said that the new policy will give Nepal’s hydropower a good market in India. The Nepal Electricity Authority has been exporting electricity saved during the rainy season to India after consumption within the country. The authority has been selling around 110 MW of electricity to Indian company NTPC Vidyut Vrayya Nigam Ltd-NVVN through competition in the IX’s day-ahead market and recently under a mid-term power agreement. NVVN is selling the electricity in the state of Haryana.

The Central Electricity Authority of India has also allowed the sale of about 44 MW of electricity in the real time market out of the 522 MW approved for export to the competitive market in the first phase. The Nepal Electricity Authority has received approval to export 632 MW of electricity to the competitive market with 522 MW and 110 MW to NVVN.

Download : Minimum share of consumption of RE by DISCOMs