India needs to add 18 GW hydro power by 2030 to meet HPO criteria

25 Jan 2022 CW Team

Girishkumar Kadam, Senior Vice President & Co-Group Head - Corporate ratings, Investment Information and Credit Rating Agency of India Limited (ICRA) told the media that HPO requirements have only been announced by State Electricity Regulatory Commissions (SERCs) in a few states, following policy objectives.

As a result, consistency and timeliness in the notification of HPO requirements by SERCs in other states, as well as subsequent implementation by the obligated entities, would be closely monitored.

According to the rating agency, hydro capacity development in India has been slow due to considerable execution issues, as seen by the incremental capacity addition of around 22 GW between 2000 and 2021, a compound annual growth rate (CAGR) of more than 3% in the hydro segment.

The share of hydropower in total generation capacity has decreased significantly over time, with a considerable increase in thermal capacity expansion from 2005 to 2015, and then in the renewable energy segment after that.

ICRA said that with enhanced solar and wind energy tariff competitiveness and a strong policy focus by the government, the share of renewables, especially solar and wind energy, in the energy generation mix is expected to grow significantly in the future.

From a grid standpoint, the hydro energy segment is critical for meeting flexibility and peaking power supply requirements.

Over the previous two years, the government has detailed policy initiatives to encourage investment in hydropower through the notification of HPO norms, a long-term HPO trajectory, and tariff rationalisation measures.

According to the Ministry of Power, the hydro power purchase obligation for 2021-22 is set at 0.18%, rising to 2.82% by 2029-30 at the national level.

Image Source

Also read: JSW Renew inks pact with SECI to supply 270 MW wind capacity

Based on the notified Hydro Purchase Obligation (HPO) criteria and trajectory, India's incremental hydropower generation capacity requirement is expected to be around 18 GW by 2030, which corresponds to a 39% increase over the existing installed hydro base. Girishkumar Kadam, Senior Vice President & Co-Group Head - Corporate ratings, Investment Information and Credit Rating Agency of India Limited (ICRA) told the media that HPO requirements have only been announced by State Electricity Regulatory Commissions (SERCs) in a few states, following policy objectives. As a result, consistency and timeliness in the notification of HPO requirements by SERCs in other states, as well as subsequent implementation by the obligated entities, would be closely monitored. According to the rating agency, hydro capacity development in India has been slow due to considerable execution issues, as seen by the incremental capacity addition of around 22 GW between 2000 and 2021, a compound annual growth rate (CAGR) of more than 3% in the hydro segment. The share of hydropower in total generation capacity has decreased significantly over time, with a considerable increase in thermal capacity expansion from 2005 to 2015, and then in the renewable energy segment after that. ICRA said that with enhanced solar and wind energy tariff competitiveness and a strong policy focus by the government, the share of renewables, especially solar and wind energy, in the energy generation mix is expected to grow significantly in the future. From a grid standpoint, the hydro energy segment is critical for meeting flexibility and peaking power supply requirements. Over the previous two years, the government has detailed policy initiatives to encourage investment in hydropower through the notification of HPO norms, a long-term HPO trajectory, and tariff rationalisation measures. According to the Ministry of Power, the hydro power purchase obligation for 2021-22 is set at 0.18%, rising to 2.82% by 2029-30 at the national level. Image Source Also read: JSW Renew inks pact with SECI to supply 270 MW wind capacity

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..