(LiveMint)
India is considering lowering tariffs for new hydro-electric power projects to help them compete against cheaper forms of electricity, according to people with knowledge of the matter. The Union power ministry has proposed excluding the costs of building infrastructure such as roads and bridges from tariffs to make new hydropower projects viable, the people said asking not to be named as the discussions are not public yet. Those costs might be borne by the federal government and the states where the projects are located, the people said, adding that the details haven’t been finalized.
Power ministry spokesman Rajesh Malhotra declined to comment. Nearly 100 gigawatts of electricity potential in India’s rivers is lying untapped because of high tariffs. Hydropower projects, often located in remote regions, are crucial to stabilize the grid as India looks to add 175 gigawatts of renewable capacity. These plants can be swiftly turned on and off, helping the grid withstand fluctuations caused by intermittent supplies from solar and wind.
