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Unwillingness of Distribution Utilities to Buy Power From Hydro Projects:Will it Affect Energy Security Plans of India?

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In what may impact India’s hydropower generation plans, states are averse to buying electricity from NHPC Ltd’s projects because of high tariffs. State electricity boards (SEBs) are not signing the power purchase agreements (PPAs) for the full life cycle of a project, further exacerbating the situation for the state-owned utility.

Source:- live mint

SNP Insight

India's energy security plans may be at stake due to unwillingness of distribution utilities to purchase hydro power. Due to lack of PPAs some of the projects may turn into stalked projects in the near future, which in turn might contradict the govt's plan of harnessing renewable energy on a large scale. Need of the hour is to address the issues related to the hydro power development in the country which will help to ensure energy security in future.

Source:- SNP Infra Research