Recently Power Minister Jyotiraditya Scindia  said that the government is considering introducing “Hydro Purchase Obligation (HPO)”. 

This will make it compulsory for distribution companies to purchase certain percentage of their energy requirements from hydel sources.


The objective us to give a boost to India’s hydro sector over a long term.  The HPO is expected to work similar to existing Renewable Purchase Obligation (RPO) that mandates power distribution companies to meet certain percentage of their energy needs by buying renewable power or green energy certificates.

We all know how the REC market is functioning at this stage.  The market has not attracted the top buyers and because of lack of enforcement; the REC power developers are not really happy. 


I believe instead of new concepts; the government needs to sort out the challenges and achieve a sustainable REC trading platform that can  have bring a long term investment vision for bankers. developers and investors. Bringing in new concepts and improving it further will then be more easier.

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