Central Electricity Authority (CEA) has suggested mandatory hydro power purchase obligations for states wherein each state will have to achieve a hydro energy share of 9-10%. The proposed model is on the lines of the Renewable Purchase Obligation (RPO) or Renewable Purchase Certificates (RPCs) used for renewable energy development. Under the RPO model, different State Electricity Regulatory Commissions have specified different quantum of renewable energy which needs to be consumed by their respective discoms in their energy mix. The SERCs also impose penalty for not achieving the mandated share.
It may be noted that the share of hydro installed capacity in the total installed capacity, currently at around 20%, has been on a downward trajectory for long. Further, the energy contribution from hydro power in total energy was just 13% on all India basis in 2012-13 with wide variations amongst states on account of low load factor of hydro power plants. While states like Sikkim, Manipur, Meghalaya and Chandigarh have more than 60% availability from hydro projects, hydro capacity from few states like Chhattisgarh, Gujarat, Andhra Pradesh, Tamil Nadu contributes to less than 5% in the total energy availability.