Budget: Centre may back states in north-east hydropower play
Budget 2024: Looking to fast-track hydropower capacity creation, the upcoming budget could unveil funding support to north-eastern states for purchasing equity in hydropower projects, said people familiar with the matter.
The Centre could support equity participation by state governments in hydropower projects in the northeast at 24% of the total project equity, subject to a cap of Rs 750 crore per project initially, they said. “A new scheme focused on northeast is under consideration,” said one of the persons, who did not wish to be identified, adding the move was part of the government’s clean energy focus.
North-eastern states that wish to have a joint venture for such projects are likely to be given financial assistance for their stake, said another person.
The government expects a significant contribution from the hydropower sector for its targets aimed at reducing emissions intensity of GDP by 45% from 2005 levels by 2030 and reaching 50% of installed power capacity from non-fossil-fuel sources.
Hydropower projects of 15 GW are under construction in the country and the capacity is likely to increase to 67 GW by 2031-32 from 42 GW.
Renewable energy is intermittent in nature and requires balancing power for grid stability. Conventional hydropower and pumped storage schemes are the best energy storage technology to integrate renewables in the grid and to stabilise it, according to a report of the parliamentary standing committee on energy.
Identified capacity in Arunachal Pradesh is the highest among states
