India needs to add 18 GW hydro power by 2030 to meet HPO criteria
POWER & RENEWABLE ENERGY

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

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

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

Next Story
Infrastructure Transport

NHAI Tightens Contractor Norms to Boost Highway Quality

The National Highways Authority of India (NHAI) has revised Request for Proposal (RFP) provisions to enhance the quality of highway projects, reduce delays, and lower lifecycle costs. The updates tighten contractor qualification norms, strengthen execution compliance, and increase financial transparency, the Ministry of Road Transport and Highways (MoRTH) said on Wednesday.The stricter RFP clauses will ensure that only technically capable and experienced contractors are eligible for national highway projects. RFPs formally invite bids from contractors, specifying project requirements, terms, a..

Next Story
Infrastructure Transport

Imphal to Gain Rail Connectivity with Jiribam Line Soon

Indian Railways is advancing rapidly on the Jiribam–Imphal railway line, a landmark project set to bring train connectivity to Imphal, the capital of Manipur. The 110.625 km line falls under the administrative control of the Northeast Frontier Railway (NFR) zone.Following the recent completion of the Bairabi–Sairang rail project, which enabled services from Aizawl (Sairang), Imphal will soon join the national rail network. During his visit to Manipur on 13 September 2025, Prime Minister Narendra Modi affirmed that the government is investing Rs 22 billion in the project.Currently, a 55.36 ..

Next Story
Infrastructure Transport

Adani to Double Colombo Terminal Capacity Ahead of Schedule

India’s Adani Group and its partners are set to double the capacity of the $840 million Colombo West International Terminal months ahead of schedule, despite relinquishing $553 million in U.S. funding, according to an executive at partner firm John Keells Holdings.The deepwater terminal, situated alongside a facility operated by China Merchants Port Holdings, highlights Sri Lanka’s strategic role in the contest for influence in the Indian Ocean between New Delhi and Beijing.The first phase of the fully automated terminal became operational in April 2025. The second and final phase is under..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?