New Delhi: The Damodar Valley Corporation (DVC) has signed power purchase agreements with state-owned SJVN Ltd to procure hydropower from two under-construction projects in Himachal Pradesh, as part of its strategy to meet renewable purchase obligations (RPOs) and manage rising industrial demand in its command area. Hydropower will be sourced from SJVN’s Sunni Dam and Luhri Stage-I projects. Both facilities are currently under development and the agreements will take effect after their commissioning.
Focus on Compliance, Not Capacity Expansion
The move reflects a regulatory response rather than a major shift in DVC’s generation capacity planning. With an installed capacity of nearly 6,500 MW, primarily from coal, DVC continues to depend heavily on thermal sources. However, power distribution companies (discoms) like DVC are required under central regulations to purchase a certain percentage of electricity from renewable sources.
“These PPAs are part of our effort to meet green energy obligations in our distribution business,” said DVC Member-Secretary John Mathai, referring to statutory targets set by the Ministry of Power.
DVC currently distributes around 43 billion units of power annually, mostly to industrial users in West Bengal and Jharkhand. Its load profile makes it dependent on firm, high-tension supply – a challenge as it attempts to gradually integrate renewables. While the agreements serve compliance goals, they also target grid-related challenges. Industrial zones under DVC’s supply network often face sharp peak demands, and hydropower offers flexibility compared to solar or wind.
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