With renewable energy status given to the hydropower sector, Odisha will be reaping benefits in a big way as the State holds vast scope for development of the green energy sources.

Earlier, the State Government had time and again requested the Union Government in this regard and with such a favourable decision, Odisha will be benefitted in a big way, senior officials admit.

The Union Government’s recent decision for providing renewable energy status for large hydro projects has come as a boon for the State, which has large numbers of hydel power plants and there is more scope for generation of power from the sector, said a senior official in Department of Energy.

The Odisha Government recently had urged the Union Government in Ministry of New and Renewable Energy to categorize hydro power project with capacity of 25 Mega Watt (MW) and above as renewable energy, which has been conceded.

Officials feel this will boost hydro power generation and by adding hydro power as renewable energy, generation of 225 Giga Watt of renewable energy by 2022 will be possible.

At present, hydro power tariff is expensive than other sources of energy and this step will help rationalize the tariff by hydro power projects.

With such a favourable decision, large hydro power projects would be allowed reduction of tariff after increasing project life to 40 years and increasing debt payment period to 18 years, said official sources.

Earlier, Odisha submitted that as the Union Government is considering the proposal to categorize hydro units with 25MW capacity and above as renewable energy, all the new and up-coming as well as existing hydro projects  be kept under Non Solar Renewable Purchase Obligation (RPO) within renewable energy spectrum.

The State Government had justified that all hydro power projects, new, old, small, medium and large, are renewable in nature.

Under the backdrop, decision taken by the Union Government will promote hydro power generation including providing budgetary support for flood moderation cost and enabling infrastructure cost.

It will help in tariff rationalization measures to reduce tariff and thus the burden will be lessened on consumers, said an official.

Making another request, Odisha had also urged for financial support for small hydro projects, which were provided till March 31, 2017 to be extended for another five years.

Odisha has huge scope for small hydro power projects and due to absence of such financial support, projects were not taking off.  Now promoters are upbeat with change of policy by the Union Government, said sources.