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News Brief | November 2013

Buying fixed amount of hydro power may become mandatory

The government is considering making it mandatory for power distribution utilities to purchase a fixed amount of hydro power to reduce dependence on coal-fuelled electricity plants and improve the country┬┤s energy security. The proposal to introduce hydropower purchase obligations or HPOs aims to provide incentives similar to those extended to renewable energy, which require the signing of renewable purchase obligation, or RPOs. It would also provide a safety net for hydro power developers by guaranteeing the purchase of electricity-├╣making these projects much more bankable.
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