The government has decided to re-classify large hydroelectric projects as renewable energy under the New Hydroelectricity Policy.
Earlier only small hydro projects of a capacity of less than 25 MW were treated as renewable energy. Large hydro projects were treated as a separate source of energy.
It is a reclassification of existing capacity i.e. only a cosmetic change. No additional resources have been created through this policy.
Impact of the Reclassification
Drastic Change in Energy Mix: India’s renewable energy sector had an installed capacity of 75,055.92 MW as of February 2019, according to data with the Central Electricity Authority. This made up about 21.4% of the overall energy mix, with the rest coming from thermal, nuclear and large hydro sources.
With the inclusion of large hydro in renewable energy, the energy mix changes drastically. Renewable energy capacity would now be 1,20,455.14 MW or 34.4% of the overall energy mix.
Earlier, wind energy contributed nearly 50% of all renewable energy capacity, it will now make up only 29.3%.
Similarly, solar energy’s share will fall from 34.68% to 21.61%.
However, the hydro sector will see its share grow from just over 6% to over 41%.
