Indian Provision To Allow Electricity Purchased From Foreign Countries To Be Part Of Renewable Energy Consumption

Nijgadh - India has arranged that if electricity is produced from hydropower projects outside the country but its country is purchased and consumed, it will also be counted as renewable energy.

The Ministry of Electricity of India published a notice in the gazette on October 3 and has set the minimum consumption share of renewable energy for the years 2024-25 to 2029-30. In which the consumption share of wind, hydropower, distributed, and other renewable energy is specified.

By setting the minimum consumption share of compulsory hydropower purchase (HPO) for the licensed distribution companies and buyers of India, it has been arranged that the electricity purchased from the hydropower projects of neighboring countries approved for sale of electricity in India by the central government can also be included in the renewable energy consumption share. Earlier, such an HPO arrangement was only for electricity purchased from hydropower projects produced in India.

India has to meet the target of increasing renewable energy consumption share to 29.91 percent by 2024-25 and 43.33 percent by 2029-30. Out of this, the share of hydropower consumption should be increased to 0.38 percent in 2024-25 and 1.33 percent by 2029-30. For this purpose, it has been arranged that only the electricity produced from the hydropower projects put into operation after 31st March 2024 will be counted. Distribution companies and power buyers who have to deliver the specified HPO and who do notwill be fined.

There is a provision that the electricity purchased from hydropower projects that were put into operation before April 1, 2024, can also be counted against the consumption share specified for other renewable energy. Kulman Ghising, executive director of Nepal Electricity Authority, said that if the new system of mandatory hydropower purchase is implemented practically, it will benefit Nepal, India, and Bhutan. 'We have been asking India for a long time to include the electricity purchased from hydropower projects outside its country in the HPO. If the practical plan is implemented, Nepal's hydropower will get a good market in India.

The authority has been exporting to India the electricity saved during the rainy season 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 IX's day-ahead market and recently under a mid-term power agreement. NVN is selling electricity in the state of Haryana.

The Central Electricity Authority of India has approved the export of nearly 44 megawatts of real-time market electricity in the competitive market from a total of 522 megawatts for the first phase. Additionally, the Nepal Electricity Authority has received approval for the export of 632 megawatts of electricity, with 110 megawatts being allocated to NVVN.