New hydro policy to help meet renewables target

New hydro policy to help meet renewables target

1. Recently,Union Cabinet had approved a new hydroelectric policy aimed at boosting the sector.According to the new policy,large hydro projects will also be designated as renewable energy projects.
2. Earlier,only smaller projects of less than 25 MW in capacity were categorised as renewable energy projects and were eligible for various incentives like financial assistance and cheaper credit.
3. This decision will help in meeting the targets set for the renewable energy sector.India is aiming 175 GW of renewable energy by 2022.
4. This policy has also changed the renewable energy mix as well.Wind energy which contributed nearly 50% of all renewable energy capacity will now make up only 29.3%.Similarly, solar energy’s share will fall from 34.68% to 21.61%.However,Hydro sector will see its share grow from just over 6% to over 41%.