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- 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.
- 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.
- This decision will help in meeting the targets set for the renewable energy sector.India is aiming 175 GW of renewable energy by 2022.
- 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%.
