With Odisha having a huge scope for development of small hydropower projects, a demand has been presented to the Union Government to allow subsidies for such plants for another five years.
Energy Secretary Hemant Sharma has sought financial support for these plants from the Union Ministry of New and Renewable Energy (MNRE) in the All India Power Ministers Meet held here last week.
The Ministry of Power convened the two-day long meet to discuss issues in power sector and Union Minister of Power RK Singh is taking a lot of interest in Odisha as it is performing well in the sector. Secretary Sharma, CESU CEO Md Sadiq Alam and other senior officials attended the meet.
Sharma said that the MNRE was extending financial support in shape of grant, assistance, subsidies, which were valid till March 31, 2017 and the same was not renewed.
As there is enough scope for small hydro power projects in Odisha, the much sought-after extension will certainly prove to be a right direction in augmenting renewable energy capacity of the nation as a whole, said Sharma.
He said it is heartening that the Ministry of Power has recognized hydro power plants of 25 Mega Watt (MW) as renewable energy.
So, the Energy Secretary urged to include all new and upcoming as well as existing small, medium and large hydro power projects as renewable nature because they perform the same function and are non-polluting in nature.
It is observed from a Ministry of Power notification on February 1 that the Renewable Purchase Obligation (RPO) Trajectory for Captive Power Plants (CGP) has been capped at the RPO Level applicable in the year in which the CGP was commissioned.
And the notification has pointed out that there would not be an increase in RPO of such CGPs without any fossil fuel capacity being added.
However, the Odisha Government has suggested that the provisions should be extended to all other obligated entities in the State and all such entities should be treated alike the CGPs in the matter of reckoning the RPO obligations.