India Hydro Energy

Overview
Energy is a key factor in a nation’s socio-economic development. With increasing environmental concerns such as global
warming and frequent extreme and irregular weather events, there is a global transition towards energy generation from
renewable resources, such as solar, wind, hydropower, tidal, geothermal, bio-power, and green hydrogen.

The United Nations has included affordable and clean energy as one (7th) of its 17 Sustainable Development Goals in
2015. India, a developing economy, is the world’s third-largest energy consumer. The Government of India (GoI) is
ambitiously engaged in becoming a renewable economy. India’s current installed capacity is about 387 GW, with thermal
power occupying 61%, hydropower (above 25 MW) occupying 12%, nuclear 2%, and renewables such as solar, wind,
small hydropower, biomass gasifier, biomass power, urban & industrial waste power occupying 25% of the share.

India has committed to reduce its emissions intensity per unit GDP by 33 to 35 percent below 2005 level by 2030, and
achieve 40% cumulative electric power installed capacity of non-fossil fuel-based energy resources by 2030. The short-
term targets are to achieve 175 GW of renewable energy installed capacity by 2022, that includes 100 GW solar, 60 GW
wind, 10 GW bio-power, and 5 GW small hydropower. By 2030, the aim is to achieve 450 GW installed capacity of
renewables. By August 2021, India has achieved 100 GW of renewable energy capacity, excluding large hydropower.

Hydropower, which generates energy through water falling from a height, plays a dominating role in the global energy
transition. Hydropower plants are broadly categorized as storage, run-of-river, and pumped storage. They provide
immense benefits, such as clean energy, provides the base and peak load supply, quick ramp-up and ramp-down rates,
black start, and operating reserve capability. In addition, pumped storage plants (PSPs) provide grid stability by acting as
a green and rechargeable battery to accommodate intermittent renewables such as solar and wind. In 2020, hydropower
contributed to 4370 Terawatt-hours (TWh) of global electricity generation, the highest contribution by a renewable
energy resource.

Currently, pumped storage hydropower plants provide the largest energy storage capacity (94%) in the world. Reservoir-
based hydropower projects also provide flood control and a dependable water supply for drinking and irrigation
purposes. In India, the Tehri reservoir in the state of Uttarakhand maintains continuous water flow, especially during
religious gatherings in the downstream city of Haridwar, a place of high religious importance. On April 5, 2020, India’s
Prime Minister had announced a 9-minute solidarity period from 9 PM. To achieve this, there was a load drop of about
32 GW for a period of 49 minutes. Hydropower plants played a leading role in maintaining grid stability with a peak ramp
rate of 2.7 GW per minute.

Hydropower or waterpower is power derived from the energy of falling water or fast running water, which may be
harnessed for useful purposes. Since ancient times, hydropower from many kinds of watermills has been used as a
renewable energy source for irrigation and the operation of various mechanical devices, such as gristmills, sawmills,
textile mills, trip hammers, dock cranes, domestic lifts, and ore mills. A trompe, which produces compressed air from
falling water, is sometimes used to power other machinery at a distance.

A hydroelectric power plant typically consists of a high dam that is built across a large river to create a reservoir, and a
station where the process of energy conversion to electricity takes place. The first step in the generation of energy in a
hydropower plant is the collection of run-off of seasonal rain and snow in lakes, streams and rivers, during the
hydrological cycle. The run-off flows to dams downstream. The water falls through a dam, into the hydropower plant and
turns a large wheel called a turbine. The turbine converts the energy of falling water into mechanical energy to drive the
generator After this process has taken place electricity is transferred to the communities through transmission lines and
the water is released back into the lakes, streams or rivers. This is entirely not harmful, because no pollutants are added
to the water while it flows through the hydropower plant.
Hydropower types
Hydro Power projects are classified as large and small hydro projects based on their sizes. Different countries have
different size criteria to classify Small Hydro Power projects. In India, Hydro Power plants with capacity of 25 MW or
below are classified as Small Hydro. Hydro Power was looked after by Ministry of Power prior to 1989. In 1989, plant
capacity upto 3MW and below was transferred to the Ministry of New and Renewable Energy (MNRE).Thereafter, many
initiatives were taken by this Ministry for the promotion of Small Hydro which included implementation of a UNDP-GEF
assisted Technical Assistance project entitled “Optimizing Development of Small Hydro Resources in Hilly Regions of
India” and India-Renewable Resources Development Project with IDA credit line having inter-alia Small Hydro
development component with target of 100MW canal based Small Hydro Power projects through private sector
participation. Subsequently plant capacity up to 25MW and below was entrusted with the MNRE in November 1999.

The estimated potential of 21133 MW from 7133 sites for power generation in the country from small / mini hydel
projects was assessed by Hydro and Renewable Energy Department(HRED), earlier known as Alternate Hydro Energy
Centre (AHEC) of IIT Roorkee and compiled it as Small Hydro Database of July 2016. The hilly States of India mainly
Arunachal Pradesh, Himachal Pradesh, Jammu & Kashmir and Uttarakhand constitute around half of this potential. Other
potential States are Maharashtra, Chhattisgarh, Karnataka and Kerala. Focused attention is given towards these States
through close interaction with these States.

Hydropower is used primarily to generate electricity. Broad categories include:

1. Conventional hydroelectric, referring to hydroelectric dams.

2. Run-of-the-river hydroelectricity, which captures the kinetic energy in rivers or streams, without a large reservoir
and sometimes without the use of dams.
3. Small hydro projects are 10 megawatts or less and often have no artificial reservoirs.
4. Micro hydro projects provide a few kilowatts to a few hundred kilowatts to isolated homes, villages, or small
industries.
5. Conduit hydroelectricity projects utilize water which has already been diverted for use elsewhere; in a municipal
water system, for example.
6. Pumped-storage hydroelectricity stores water pumped uphill into reservoirs during periods of low demand to be
released for generation when demand is high, or system generation is low.
There are three types of hydropower facilities: impoundment, diversion, and pumped storage. Some hydropower plants
use dams and some do not. Although not all dams were built for hydropower, they have proven useful for pumping tons
of renewable energy to the grid. In the United States, there are more than 90,000 dams, of which less than 2,300
produce power as of 2020. The other dams are used for recreation, stock/farm ponds, flood control, water supply, and
irrigation. Hydropower plants range in size from small systems suitable for a single home or village to large projects
producing electricity for utilities.

IMPOUNDMENT
The most common type of hydroelectric power plant is an impoundment facility. An impoundment facility, typically a
large hydropower system, uses a dam to store river water in a reservoir. Water released from the reservoir flows through
a turbine, spinning it, which in turn activates a generator to produce electricity. The water may be released to meet
changing electricity needs or other needs, such as flood control, recreation, fish passage, and other environmental and
water quality needs.

DIVERSION
A diversion, sometimes called a “run-of-river” facility, channels a portion of a river through a canal and/or a penstock to
utilize the natural decline of the river bed elevation to produce energy. A penstock is a closed conduit that channels the
flow of water to turbines with water flow regulated by gates, valves, and turbines. A diversion may not require the use of
a dam.

PUMPED STORAGE
Another type of hydropower, called pumped storage hydropower, or PSH, works like a giant battery. A PSH facility is able
to store the electricity generated by other power sources, like solar, wind, and nuclear, for later use. These facilities store
energy by pumping water from a reservoir at a lower elevation to a reservoir at a higher elevation.
When the demand for electricity is low, a PSH facility stores energy by pumping water from the lower reservoir to an
upper reservoir. During periods of high electrical demand, the water is released back to the lower reservoir and turns a
turbine, generating electricity.

Introduction
India is 5th globally for installed hydroelectric power capacity. As of 31 March 2020, India's installed utility-scale
hydroelectric capacity was 46,000 MW, or 12.3% of its total utility power generation capacity. Additional smaller
hydroelectric power units with a total capacity of 4,683 MW (1.3% of its total utility power generation capacity) have
been installed. India's hydroelectric power potential is estimated at 148,700 MW at 60% load factor. In the fiscal
year 2019–20, the total hydroelectric power generated in India was 156 TWh (excluding small hydro) with an
average capacity factor of 38.71%. The hydroelectric power plants at Darjeeling and Shivanasamudra were established in
1898 and 1902, respectively. They were among the first in Asia and India has been a dominant player in global
hydroelectric power development. India also imports surplus hydroelectric power from Bhutan. India's economically
exploitable and viable hydroelectric potential is estimated to be 148,701 MW. An additional 6,780 MW from smaller
hydro schemes (with capacities of less than 25 MW) is estimated as exploitable. 56 sites for pumped storage schemes
with an aggregate installed capacity of 94,000 MW have also been identified. In central India, the hydroelectric power
potential from the Godavari, Mahanadi, Nagavali, Vamsadhara and Narmada river basins has not been developed on a
major scale due to potential opposition from the tribal population

Small hydropower, defined to be generated at facilities with nameplate capacities up to 25 MW, comes under the ambit
of the Ministry of New and Renewable energy (MNRE); whilst large hydro, defined as above 25 MW, comes under the
ambit of the Ministry of Power. Koyna Hydroelectric Project is the largest completed hydroelectric power plant in India,
with a power capacity of 1960 MW. India's hydroelectric power output dropped by 16.3% in the fiscal year ending March
31, 2024, the largest decline in 38 years, primarily due to low rainfall. This decrease led to hydroelectricity's share of
India's total power generation falling to a historic low of 8.3%. As a result, the country's reliance on coal increased, with
hydro generation reaching a five-year low of 146 billion kWh. The lack of rainfall was attributed to the lightest rainfall
since 2018 and potentially influenced by the El Niño weather pattern. Consequently, hydroelectric power's role in the
Indian energy mix is diminishing, with its reliability questioned due to erratic weather patter
Hydropower is a renewable energy resource because it uses the Earth's water cycle to generate electricity. Water
evaporates from the Earth's surface, forms clouds, precipitates back to earth, and flows toward the ocean. The
movement of water as it flows downstream creates kinetic energy that can be converted into electricity. 2700 TWH is
generated every year. Hydropower supplies at least 50% of electricity production in 66 countries and at least 90% in 24
countries. Out of the total power generation installed capacity in India of 1,76,990 MW (June, 2011), hydro power
contributes about 21.5% i.e. 38,106 MW. A capacity addition of 78,700 MW is envisaged from different conventional
sources during 2007-2012 (the 11th Plan), which includes 15,627 MW from large hydro projects. In addition to this, a
capacity addition of 1400 MW was envisaged from small hydro up to 25 MW station capacity. The total hydroelectric
power potential in the country is assessed at about 150,000 MW, equivalent to 84,000 MW at 60% load factor. The
potential of small hydro power projects is estimated at about 15,000 MW.

Technology
A hydroelectric power plant consists of a high dam that is built across a large river to create a reservoir, and a station
where the process of energy conversion to electricity takes place. The first step in the generation of energy in a
hydropower plant is the collection of run-off of seasonal rain and snow in lakes, streams and rivers, during the
hydrological cycle. The run-off flows to dams downstream. The water falls through a dam, into the hydropower plant and
turns a large wheel called a turbine. The turbine converts the energy of falling water into mechanical energy to drive the
generator After this process has taken place electricity is transferred to the communities through transmission lines and
the water is released back into the lakes, streams or rivers. This is entirely not harmful, because no pollutants are added
to the water while it flows through the hydropower plant.

Sustainability
As with other forms of economic activity, hydropower projects can have both a positive and a negative environmental
and social impact, because the construction of a dam and power plant, along with the impounding of a reservoir, creates
certain social and physical changes. A number of tools have been developed to assist projects. Most new hydropower
project must undergo an Environmental and Social Impact Assessment. This provides a base line understand of the pre
project conditions, estimates potential impacts and puts in place management plans to avoid, mitigate, or compensate
for impacts.

The Hydropower Sustainability Assessment Protocol is another tool which can be used to promote and guide more
sustainable hydropower projects. It is a methodology used to audit the performance of a hydropower project across
more than twenty environmental, social, technical and economic topics. A Protocol assessment provides a rapid
sustainability health check. It does not replace an environmental and social impact assessment (ESIA), which takes place
over a much longer period of time, usually as a mandatory regulatory requirement.

The World Commission on Dams final report describes a framework for planning water and energy projects that is
intended to protect dam-affected people and the environment, and ensure that the benefits from dams are more
equitably distributed. IFC’s Environmental and Social Performance Standards define IFC clients’ responsibilities for
managing their environmental and social risks.

The World Bank’s safeguard policies are used by the Bank to help identify, avoid, and minimize harms to people and the
environment caused by investment projects. The Equator Principles is a risk management framework, adopted by
financial institutions, for determining, assessing and managing environmental and social risk in projects. Reservoirs
accumulate plant material, which then decomposes, emitting methane in uneven bursts.

Potential in India
India is blessed with immense amount of hydro-electric potential and ranks 5th in terms of exploitable hydro-potential
on global scenario. As per assessment made by CEA, India is endowed with economically exploitable hydro-power
potential to the tune of 1,48,700 MW of installed capacity.
India’s economically exploitable and viable hydroelectric potential is estimated to be 148,701 MW. An additional 6,780
MW from smaller hydro schemes (with capacities of less than 25 MW) is estimated as exploitable. 56 sites for pumped
storage schemes with an aggregate installed capacity of 94,000 MW have also been identified. In central India the
hydroelectric power potential from the Godavari, Mahanadi, Nagavali, Vamsadhara and Narmada river basins has not
been developed on a major scale due to potential opposition from the tribal population.

The public sector accounts for 92.5% of India’s hydroelectric power production. The National Hydroelectric Power
Corporation (NHPC), Northeast Electric Power Company (NEEPCO), Satluj Jal Vidyut Nigam (SJVNL), THDC, and NTPC-
Hydro are some of the public sector companies producing hydroelectric power in India. The private sector is also
expected to grow with the development of hydroelectric energy in the Himalayan Mountain ranges and in the northeast
of India. Indian companies have also constructed hydropower projects in Bhutan, Nepal, Afghanistan, and other
countries.

Bhakra Beas Management Board (BBMB), a state-owned enterprise in north India, has an installed capacity of 2.9 GW.
The generation cost after four decades of operation is about 27 paise (0.40¢ US) per kWh. BBMB is a major source of
peaking power and black start capability to the northern grid in India and it’s large reservoirs provide wide operational
flexibility. BBMB reservoirs also supply water for the irrigation of 12.5 million acres (51,000 km2; 19,500 sq mi) of
agricultural land in partner states, enabling the green revolution in the northern India.

India has gone from an electricity deficit state to an electricity surplus state by making use of pumped storage schemes
which store surplus power to meet peak load demands. The pumped storage schemes also capture secondary, seasonal
power at no additional cost when rivers are flooded with excess water. India has already established nearly 6,800 MW
pumped storage capacity with the installation of hydro power plants.

Pumped storage units can also be used as pumping stations to supply river water for upland irrigation, industrial needs
and drinking water. In a tropical country like India, abundant water for agriculture is needed due to a very high annual
evaporation rate. The amount of water necessary to meet this demand can be harnessed from India’s rivers via pumped
storage units. Food security in India is improved with water security, which in turn is possible from the energy security
needed to supply the power for the pumped storage schemes.

More and more solar power generation is becoming available due to lowering cost and its advantage in terms of
environmental impact. Solar power may have the capacity to meet daytime energy demands while pumped storage units
could meet night-time demands. Many of the existing hydropower stations on the west-flowing rivers located in the
Western Ghats of Kerala and Karnataka are already expanding to include pumped storage units in an effort to solve the
water deficit of east-flowing rivers like the Kaveri, the Krishna, etc.

Central Electricity Authority Assessment (CEAA) assessed the economically exploitable hydro power potential in terms of
installed capacity as 148,701 MW, out of which 145,320 MW is from schemes having capacity above 25 MW. As on
Mar’16, the hydro-electric schemes in operation account for only 31% and thus, the bulk of the potential (69% including
the projects that are under development) remains to be developed.

The Government of India has taken many policy initiatives for sustainable hydro-power development. In 2008, the
government came out with a Hydro Policy with an objective to achieve the implementation of these projects. The centre
and many states have initiated hydro projects through PPP to attract investors for the development of water resources in
an environment-friendly manner and to generate revenue while ensuring project viability. Odisha adopted PPP policy in
2007, Arunachal Pradesh (2011), Uttarakhand (2012) and Andhra Pradesh & Gujarat had framed PPP policy. Many
projects had been allotted under PPP, however, some of these projects have struggled in the past due to several reasons
such as R&R issues, land acquisition problems, clearance and approval procedures, capability of developers, etc. These
issues resulted in a declining share of hydropower in India’s power mix by almost 32% in the last 50 years. For example,
in Arunachal Pradesh, out of 120 MoUs (~40 GW) signed in last dacade, most of the projects are at a standstill. India
added 1824 MW of large hydropower capacity in 2015, most of these projects have a troubled track record in one way or
the other that include issues like land acquisition, R&R, and cost escalations.
Due to inherent risks associated with the sector, such as geological surprises, natural calamities, environmental & forest
issues, and rehabilitation and resettlement issues apart from commercial risks and change of river basin during
operation, many developers are averse to enter into the sector. The major commercial deterrents for the private
developers are high capital cost and long payback period resulting from high gestation period which inevitably create
financing issues. The other issue related to Hydropower projects is evacuation. Hydro Power projects are capital-
intensive and financing them for long such as 20 years is really a challenge. Geographical remoteness also adds to risks
since a number of hydropower projects are located in remote sites in states which do not have enough demand for
electricity and requires developing transmission infrastructure for evacuation.

About 3100 MW has been commissioned through the private route contributing 7% of the total installed hydropower
capacity signifying that there is minimal, participation of the private sector. Private developers seek higher returns vis-a-
vis the risks involved in the sector. Solar Power and Wind Power, where technology risk is minimal pose a serious
challenge to the hydropower sector. Solar and Wind power projects with the same capacity as hydropower can be
implemented at significantly lower time & resources since solar and wind power projects are comparatively lower capital
intensive as compared to hydropower.

The basin wise assessed potential is as under: -

Basin/RiversProbable Installed Capacity (MW)

Indus Basin 33,832

Ganga Basin 20,711

Central Indian River system 4,152

Western Flowing Rivers of southern India 9,430

Eastern Flowing Rivers of southern India 14,511

Brahmaputra Basin 66,065

Total 1,48,701

In addition, 56 number of pumped storage projects have also been identified with probable installed capacity of 94 000
MW. In addition to this, hydro-potential from small, mini & micro schemes has been estimated as 6 782 MW from 1 512
sites. Thus, in totality India is endowed with hydro-potential of about 2 50 000 MW.

Installed Capacity
The total installed capacity of India is 36878 MW.
Projects
Major Hydropower generating units
NAME STATE CAPACITY (MW)

BHAKRA PUNJAB 1100

NAGARJUNA ANDHRA PRADESH 960

KOYNA MAHARASHTRA 920

DEHAR HIMACHAL PRADESH 990

SHARAVATHY KARNATAKA 891

KALINADI KARNATAKA 810

SRISAILAM ANDHRA PRADESH 770

Top ten countries (in terms of capacity)

COUNTRY POWER CAPACITY (MWh) INSTALLED CAPACITY (MW)

TAJIKISTAN 527000 4000

CANADA 341312 66954

USA 319484 79511

BRAZIL 285603 57517

CHINA 204300 65000

RUSSIA 160500 44000

NORWAY 121824 27528

JAPAN 84500 27229

INDIA 82237 22083

FRANCE 77500 77500

Growth in Hydropower

Small Hydro
In India, hydro power projects with a station capacity of up to 25 megawatt (MW) each fall under the category of small
hydro power (SHP).

Potential
India has an estimated SHP potential of about 15 000 MW.

Installed Capacity
The total installed capacity of small hydro power projects (upto 25 MW) as on 31.03.2009 is 2429.77 MW from 674
projects and 188 projects with aggregate capacity of 483.23 MW are under construction.

Potential and Projects

State-wise details of the potential and installed/under installation projects

Potential Projects Installed Projects Under implementation

S.No State
Nos Capacity Nos Capacity Nos Capacity

1 Andhra Pradesh 497 560.18 62 189.83 18 61.75

2 Arunachal Pradesh 550 1328.68 101 78.835 28 38.71

3 Assam 119 238.69 4 27.11 4 15

4 Bihar 95 213.25 18 58.3 11 36.31

5 Chhattisgarh 184 993.11 6 19.05 1 1.2

6 Goa 6 6.5 1 0.05 - -

-7 Gujarat 292 196.97 4 12.6 - -

8 Haryana 33 110.05 7 70.1 2 3.4

9 Himachal Pradesh 536 2267.81 112 375.385 40 132.2

10 Jammu & kashmir 246 1417.80 34 129.33 5 5.91

11 Jharkhand 103 208.95 6 4.05 8 34.85

12 Karnataka 138 747.95 111 725.05 18 107.5

13 Kerela 245 704.1 20 136.87 7 23.8

14 Madhya Pradesh 299 803.64 11 86.16 4 19.9

15 Maharashtra 255 732.63 39 263.825 15 51.7

16 Manipur 114 109.13 8 5.45 3 2.75

17 Meghalaya 101 229.8 4 31.03 3 1.7

18 Mizoram 75 166.93 18 36.47 1 0.5

19 Nagaland 99 188.98 10 28.67 4 4.2

20 Orissa 222 295.47 10 79.625 5 3.93

21 Punjab 237 393.23 43 153.2 15 21.4

22 Rajasthan 66 57.17 10 23.85 - -

23 Sikkim 91 265.55 16 47.11 2 5.2

24 Tamil Nadu 197 659.51 16 94.05 6 33

25 Tripura 13 46.86 3 16.01 - -

26 Uttar Pradesh 251 460.75 7 23.3 - -

27 Uttarakhand 444 1577.44 95 134.12 55 230.65

28 West bengal 203 396.11 24 98.9 16 79.25

29 Andaman & Nicobar Islands 7 7.27 1 5.25 - -

Total 5718 15384.15 801 2953.58 271 914.81

SHP projects installed in Private Sector (as on 31.03.2009)
S.No State Total Number Total Capacity

1 Andhra Pradesh 43 104.43

2 Assam 1 0.10

3 Gujarat 2 5.6

4 Himachal Pradesh 63 271.25

5 Haryana 2 7.4

6 Jammu & Kashmir 2 17.5

7 Karnataka 95 694.90

8 Kerela 3 36.00

9 Madhya Pradesh 1 2.20

10 Maharashtra 13 74.00

11 Orissa 2 32.00

12 Punjab 18 26.20

13 Tamil Nadu 1 0.35

14 Uttaranchal 10 48.30

15 West Bengal 5 6.45

Total 261 1326.68

Challenges Faced During Hydropower Development in India

The main challenges faced by developers during hydropower development are discussed below:

1. Financial
The hydropower projects are capital intensive and require high upfront costs. In addition, the risks involved in
hydropower projects lead to difficulties in the arrangement of finances/ financial closure. Further, the financing
is obtained on high premiums. In addition, many states charge a royalty on hydropower developers in the form
of 12% free power from the project, which adds to the financial burden of the developer.

2. Multiple clearance windows

During the planning stage, statutory clearances such as forest, environment, and concurrence/ techno-economic
clearance. Other clearances, such as defense and tribal, are dependent on case to case basis. All these clearances
are accorded by multiple departments, which makes the process time-consuming.

3. Social
During hydropower development, social protests are common, especially in storage schemes that resettlement
and rehabilitation (R&R) of local population. Also, there is always uncertainty over the public acceptance of the
project’s socio-environmental impacts and remuneration settlement between the project-affected families and
the developer.
 4. Water sharing dispute
Water, being a state subject, becomes the cause of dispute between state governments on the utilization of river
water. In many cases, international disputes have also occurred, with China and Pakistan affecting hydropower
development.

5. Environmental impact assessment issues

The Environmental Impact Assessment (EIA) is a crucial element in hydropower development. In some cases, due
to harsh terrain and weather conditions in the project region, developers may compromise on the quality of EIA.
Additionally, the lack of skilled and experienced manpower for EIA studies is also a cause of concern. Further,
mismanagement or lack of transparency from the developer side during public hearings, increase in the number
of projects-affected families/ higher compensation demands leads to conflict and even litigations.

6. Geological surprises
During planning, there is an uncertainty in scope finalization, as geological surprises are common during actual
construction, especially in the Himalayas. The geological challenges can lead to change in the location of civil
structures dam, powerhouse, and affect the estimated construction material quantity.

7. Remote and underdeveloped project location

Generally, hydropower projects are built in remote locations that lack basic infrastructure, road, and
communication networks. It leads to two challenges; firstly, the developer has to build the required facilities.
Secondly, the project workforce, including senior management and labor, are sometimes reluctant to move to
such locations.

8. Power evacuation issues

Many hydropower projects are built in remote regions, where the energy demand is less than in urban cities. The
developed power needs to be transmitted over long distances. There have been cases where the project is not
commissioned due to delays in the development of the power evacuation infrastructure, especially in the north-
eastern regions where the issue of chicken neck corridor is prevalent. Sometimes, the transmission network cost
occupies the leading share of the project’s total cost.

9. Lack of skilled contractors

India lacks the number of skilled contractors/ workforce necessary to revive the hydropower sector. The
technical, managerial competence is lacking to conduct detailed social, environmental impact assessments and
timely construction.

Barriers
The energy of running water has been exploited for very many years. However, traditional approaches have suffered
disadvantages due to environmental factors. For example:

 Building a dam across a river floods the land that would otherwise be available for use, alters the landscape,
affects the local community that would have lived and worked on the flooded land, alters the character of the
river, and prevents the free movement of fish;
 Diverting a river affects the nature of the countryside and does not lend itself to use on a large scale.
 Permanent complete or partial blockage of a river for energy conversion is adversely affected by variations in
flow.
 Building large-scale hydro power plants can be polluting and damaging to surrounding ecosystems. Changing the
course of waterways can also have a detrimental effect on human communities, agriculture and ecosystems
further downstream.
 Hydro projects can also be unreliable during prolonged droughts and dry seasons when rivers dry up or reduce in
volume.
Hydro research centres
Alps Power Technologies (P) Limited
The company is manufacturing small turbines and genset up to 1000 KW, complete with microprocessor based static
excitor system, microprocessor based digital governor, remote operation and telemetry and telecontrol system, chartless
recorder for data etc. The company has its own manufacturing and testing facilities at its works, in ghunna industrial
area, Saharanpur, India

Flovel Mecamidi
Flovel Mecamidi Energy Private Limited (FMEPL) is a joint venture between Flovel MG Holdings Private Limited, India and
Mecamidi S.A., France. Promoters of Flovel MG Holdings Private Limited along with its core team have decades of
experience in marketing, design, manufacture, supply, erection, commissioning & servicing of hydro power projects of all
types both for local as well as export markets

Karshni Intertech Pvt.Ltd

Karshni Intertech Pvt.Ltd is a manufacturer, wholesale supplier, exporter of hydro energy products. Their range of
products include hydro energy system components (small), hydroelectric turbines (small), solar charge controllers, water
pumping windmills, wind energy system components (large), backup power systems, 100% renewable energy farming ,
fully integrated systems.

Multitek Consortium
Multitek Consortium is a hydro energy based company located in Delhi, India. Their range of products hydro energy
system components (small), water pumps, turbine machines, gates and hoists, penstock etc.

Nagalaxmi Industries
Nagalaxmi Industries are manufacturers of industrial structures for thermal, hydel, nuclear power station, food
industries, pharmaceutical, chemical, cement etc.

SBA Hydro Systems Pvt. Ltd

SBA Hydro Systems Pvt. Ltd is a manufacturer, wholesale supplier, exporter of hydro energy products. Their range of
products include hydro energy system components (small), hydro energy system components (large), hydro energy
systems (large), hydro energy systems (small), hydroelectric turbines (small), hydroelectric turbines (large).

Pumped storage units

India has transformed from an electricity deficit state to an electricity surplus state. Peak load shortages can be met
making use of pumped storage schemes which store surplus power to meet peak load demands. The pumped storage
schemes also contribute secondary, seasonal power at no additional cost when rivers are flooded with excess water.
India has already established nearly 4,800 MW pumped storage capacity with the installation of hydropower
plants. Another 2780 MW capacity is under construction as of December 2023.

In a tropical country like India, abundant water for agriculture is needed due to a very high annual evaporation rate.
Pumped storage units can also be used as pumping stations to supply river water for upland irrigation, industrial needs,
and drinking water. The amount of water necessary to meet this demand can be harnessed from India's rivers via
pumped storage units. Food security in India is improved with water security which in turn is possible from the energy
security to supply the power needed for the pumped storage schemes.

More and more solar power generation is becoming available at cheaper cost and it has advantage in terms of
environmental impact. Solar power can meet daytime and night time energy demands with the help of pumped storage
units. Many of the existing hydro power stations on the west-flowing rivers located in the Western
Ghats of Kerala and Karnataka are to be expanded to include pumped storage units in an effort to solve the water deficit
of east-flowing rivers like the Kaveri, the Krishna, etc.
India remains dominant player in global hydropower
India is blessed with enormous hydropower potential. The hydropower schemes are divided are micro (100 kW or
below), mini (101 kW – 2 MW), small (2 – 25 MW), and large (above 25 MW). As per the Central Electricity Authority
(CEA) report, India’s hydropower potential is an enormous 84,044 MW at 60% load factor, which amounts to an installed
capacity of about 1,48,701 MW for storage and run-of-river based schemes. In addition, 96,000 MW of pumped
storage potential is identified. India has installed about 51 GW of its total hydropower potential and has the the fifth
largest global hydropower installed capacity. However, India’s hydropower sector has shown a declining trend, especially
in the last two decades. This decline is due to the various challenges faced during hydropower development.

India is the world’s 7th largest producer of hydroelectric power and is also ranked 3rd worldwide by its total number of
dams. The Tehri Dam, a 260.5 meter (855 ft) high, rock and earth-fill embankment dam is currently the tallest of India’s
approximately 4,710 finished dams. As of 31 March 2016, India’s installed utility-scale hydroelectric capacity was 42,783
MW, or 14.35% of its total utility power generation capacity. Additional smaller hydroelectric power units with a
cumulative capacity of 4,274 MW have been installed. India’s hydroelectric power potential is estimated at 84,000 MW
at 60% load factor, which is one of the largest in the world. In 2014 and 2015 the total amount of hydroelectric power
generated in India was 129 TWh (129,000,000 megawatt hours). The hydro-electric power plants at Darjeeling and
Shivanasamudram were established in 1898 and 1902, respectively. They were among the first in Asia and India has been
a dominant player in global hydroelectric power development. India also imports surplus hydroelectric power from
Bhutan.

China continues to dominate the market for new development and total installed capacity in hydropower, adding 19.4
GW of new capacity within its borders, including 1.2 GW of pumped storage during 2015.India, in contrast saw just one-
tenth of Chinese hydropower capacity added during the year, though it figured among the top five countries that saw
new capacity addition, as per the International Hydropower Association (IHA). India also ranks at number five in terms of
total installed hydropower capacity in the world, even though it has been facing severe water shortages in recent years.

At the end of 2015, the world’s total installed hydropower capacity reached 1,211 GW, including 145 GW of pumped
storage. During 2015, 33 GW of new hydropower capacity was commissioned around the world, with China accounting
for close to 60 per cent of the new capacity. Turkey was at second place with 2.3 GW being added during the year.

Brazil was next with 2 GW, closely followed by India with 1.9 GW. Iran and Vietnam were the next in line with 1 GW each
capacity being added while Malaysia and Canada saw 0.7 GW capacity being added during 2015, a new briefing by the
IHA -- 2016 Key Trends in Hydropower -- showed. Colombia and Laos saw 0.6 GW of capacity being added, while the rest
of the world saw just 2.7 GW being added during the year. Continuing the trend of recent years, the majority of new
hydropower capacity was commissioned in China and by 2015, Chinese total hydropower capacity had reached 320 GW.
The United States had 102 GW of installed capacity by 2015, followed by Brazil at 91 GW, Canada at 78 GW and India and
Russia with 51 GW each, with Japan just a tad behind at 50 GW.

The briefing also noted China’s increasing global influence as a sector trend. For example, China Three Gorges
Corporation became the second-largest private power generator in Brazil, after purchasing concessions to operate two
hydropower stations totalling 5 GW. Increased activity in Africa is also featured, with several transformative projects
having recently been completed or nearing completion in Ethiopia, Guinea and Zambia.

Other notable sector trends identified by IHA include increased recognition of the value of electricity storage through
hydropower, innovative financing options pioneered by the multilateral lenders, and the increasing influence of climate
aspects on hydropower project design and rehabilitation. IHA chief executive Richard Taylor said, “The latest data shows
that the hydropower sector is continuing its strong growth trend across the world. The new Sustainable Development
Goals and the Paris Agreement on climate action have emphasised hydropower’s vital role in meeting the world’s energy,
water and climate challenges".

“Through its ability to support clean energy systems and provide multiple water services, hydropower can be the key to
realising the ambitious global targets outlined at COP21", Taylor added. Globally, drivers for hydropower’s strong
showing include a general increase in demand not just for electricity, but also for particular qualities such as reliable,
clean and affordable power. Looking forward, there remains significant undeveloped potential across all world regions,
particularly in Asia, Africa and Latin America. Demand for electricity and other related reservoir services is also high in
these areas, forming a strong foundation for continued growth in hydropower.

Water is one of the nature’s best renewable gifts in India, which can be harnessed for cheap power generation. Hydro
power potential of India is estimated at 84,000 MW (at 60% load factor) and ultimate possible installed capacity of
145,320 MW in stations with installed capacity over 25 MW. While water is a State subject, electricity is a subject in
Concurrent List. Development of hydro power in India is governed by Indian Electricity (Supply) Act, 1948 and its
amendment Indian Electricity Act, 2003.

Power supply position

Power demand during last decade has increased a lot, but its production has not been able to keep up pace with
increasing power demand. India is experiencing a shortage in energy supplied as well as peak met. Electricity
requirements vis-à-vis its availabilities and peak power demands vis-à-vis peak met in India during the period April 2018
– August 2018 and in August 2018 are mentioned in Table 1.

Contribution of hydro power resource to total

India has conventional as well as non-conventional energy resources: thermal, hydro and renewable. Contribution of
hydro installed capacity is low as compared to thermal. At the end of August 2018, contribution of hydro installed
capacity to total installed capacity in India is 13.2 per cent.

Hydro power potential & status of development

Hydro potential for hydro power schemes above 25 MW: First systematic and comprehensive study carried out by Power
Wing of erstwhile Central Water & Power Commission during 1953-1959 assessed hydro power potential of India as
421,00 MW at 60 per cent load factor. Re-assessment study for hydro potential was completed in 1987, in which hydro
potential was placed at 84,040 MW at 60 per cent load factor. It corresponds to 148,701 MW in terms of installed
capacity including small hydro schemes. Excluding small hydro projects up to 25 MW, hydro power potential works out to
145,320 MW. In additions, 94,000 MW potential was also identified for development of pumped storage schemes.

Region-wise break-up of hydro power potential assessed, potential developed, under development and balance to be
developed is given in Table 2. North-Eastern Region has the largest potential (58356 MW: 40 per cent) followed by
Northern Region (52263 MW: 36 per cent), Southern Region (15890 MW: 11 per cent), Eastern Region (10680 MW: 7.4
per cent) and Western Region (8131 MW: 5.6 per cent).
Note: In addition to above, 1,840 MW in Western region, 2,005.6 MW in Southern region and 940 MW in Eastern region
(total 4,785.60 MW) has also been added in pumped storage schemes. Thus, total installed capacity of hydro power
stations works out as 45,369.22 MW as on 31 August 2018.

From Table 2, it is observed that 27.93 per cent of the total hydro potential has been developed and 7.57 per cent is
under development. Thus, about two-third of the potential (64.50 per cent) remains to be developed. Therefore, there is
a large scope for hydro power development in India.

Hydro projects in operations

1. All India hydro installed capacity in operation: 204 hydro power stations (individual station capacity over 25
MW) aggregating to an installed capacity 45,369.22 MW are in operation India.
2. Region-wise: Region-wise break-up of hydro stations in operation in India and their aggregated installed capacity
is given in Table 3. Northern Region has the largest installation, followed by Southern Region, Western Region,
Eastern Region and North-Eastern Region.
3. Sector-wise: Sector-wise breakup of hydro stations in operation in India with aggregated capacity is given Table
4. State Sector has largest installation followed by Central and Private sectors.
4. Stations with installed capacity over 500 MW: 27 hydro stations as mentioned in Table 5 with individual capacity
over 500 MW and aggregating to capacity of 22214.6 MW are in operation. They contribute about half (55.7 per
cent) of total hydro installation in Country.
5. Largest generating units in operation: Unit of size 100 MW and above installed in various hydro power stations
in India are listed in Table 6 in descending order. They contribute to about two-third (66.6 per cent) of the total
installed capacity in the country.
6. Largest head hydro power projects: Highest head hydro power plant commissioned so far in India is Suruliar
(979.15 m) followed by Kodayar-I (947.62 m), Vishnu Prayag (947.5 m), Sanjaya (Bhaba) (887.2 m), Pykara (867.
46 m). Top ten highest head power plants commissioned in India are listed Table 7.
Hydro power projects under implementation
1. Hydro power projects under construction: As on 30th June 2018, 38 hydro stations (station capacity above 25
MW) with an aggregate installed capacity 12,208.50 MW are under construction in the country. Sector-wise
details are listed in Table 8.
2. Projects Concurred by CEA and yet to be taken under Construction: As on 31st August 2018, 41 hydroelectric
schemes (station capacity above 25 MW) aggregating to an installed capacity of 26,460 MW have been
concurred by CEA, but not taken for construction mainly due to pending environment/forest clearances by MoEF
or due to some other reasons. Sector-wise details are mentioned in Table 9.
Hydro power projects under planning
1. DPRs are under examination in CEA for concurrence: As on 31st August 2018, 7 schemes (station capacity above
25 MW) aggregating to 1,654 MW are under examination in CEA for according concurred. Sector-wise details are
mentioned in Table 10.
2. DPRs examined and returned for resubmission after compliance of observations: Detailed projects reports
(DPRs) of 29 hydroelectric schemes aggregating to an installed capacity of 9,852 MW submitted by various
developers for concurrence were examined by CEA and the same were returned to the concerned developers for
resubmission after compliance of comments of CEA/CWC/GSI. Sector-wise details are mentioned in Table 11.
Prime Minister’s 50,000 MW Hydro Initiative
Preparation of pre-feasibility reports:
Under the programme launched by Prime Minister of India on 24th May 2003 for preparation of Preliminary Feasibility
Reports (PFRs) of hydroelectric schemes under 50,000 MW Hydroelectric Initiative, FPRs for 162 schemes aggregating to
47,930 MW in 16 States were prepared by seven CPSUs/ State agencies as consultants, viz. NHPC, WAPCOS, SJVNL,
NEEPCO, KPCL, HPSEB and UJVNL. These schemes were selected based on preliminary ranking study done by CEA. State-
wise break up is given in Table 12.

PFRs prepared would serve useful purpose of fixing the inter-se priority for implementation of schemes and also as a
basis and reference for taking up on surveys and investigations and preparation of detailed project reports of these
hydroelectric schemes.
Small hydro power development
Small Hydro Power (SHP) is generated from flowing/ falling water from rivers/ rivulets/ storage dams/ canal drops.
Ministry of New & Renewable Energy (MNRE) is responsible for development of SHP projects (station capacity up to 25
MW) for following uses:

Hydro potential for hydro power schemes up to 25 MW:

As per CEA’s study carried out during1987-1996, small hydroelectric schemes (capacity up to 25 MW) aggregating to
3,381 MW were identified. In addition, MNRE has also identified 5,718 sites aggregating to 15,384.15 MW for
development of SHP (Table 13).

Measures to Promote Hydropower

To promote the development of the hydropower sector, the Government of India has approved the
following measures in March 2019:

1. Hydropower projects above 25 MW are included in the renewable energy category. Before this, only projects up
to 25MW were considered as renewables category.
2. A hydropower purchase obligation (HPO) is created under the non-solar renewables purchase obligation (RPO).
The share of existing non-solar RPO remains the same.
3. For tariff determination, the developers have been provided flexibility by backloading of tariff considering the
project life for 40 years, debt repayment of 18 years, with an escalating tariff of 2%.
4. Subsequent to the determination of levelized tariff based on Central Electricity Regulatory Commission (CERC)
regulations, the year-wise tariff for a long-term power purchase agreement (PPA) for hydropower procurement
may be decided by the developer and DISCOMs on case-to-case basis.
 5. Budgetary support for flood moderation on case-to-case basis will be provided.
6. Budgetary support will be provided for the cost of enabling infrastructure. INR 15 million per MW for projects up
to 200 MW and INR 10 million per MW for projects above 200 MW.
Suggestions to Further Promote Hydropower
The above measures surely advocate the government’s intent to promote hydropower. This section discusses more
supportive measures that will provide more impetus to the sector’s growth.

1. The states should completely defer the 12% free power charged to the hydropower developers as royalty. At
least, the free power should be deferred till the loan repayment period.
2. To plan for holistic hydropower development, it is necessary to carry out integrated river basin-wise studies. It
will lead to effective utilization of river water’s potential and improved management of a river’s ecosystem.
3. Since water is a state subject in India, and electricity is on the concurrent list, there is a need for central and state
government’s cooperation to actively work towards hydropower promotion. The states’ water-sharing
agreements should include hydropower development agenda.
4. A nodal agency/ institution dedicated to hydropower development should be established. The agency should be
responsible for all the required clearances.
5. Pumped storage hydropower plants should be incentivized for maintaining grid stability through the ancillary
services and by acting as a water battery to support grid integration of intermittent renewables such as solar and
wind. Such incentives will also promote private sector investment for PSPs.
6. The government and private hydropower developers should collaborate with academic/ research institutions to
develop indigenous hydropower generating equipments (electrical, mechanical, electronic).
7. Central and state governments should come forward in creating public awareness programs to highlight the
importance of hydropower projects. It will address the negative perception of hydropower projects among the
public and minimize the social barriers.
8. Training and skill development courses/ workshops are required to develop a competent workforce for building
hydropower projects.

Conclusions
India has been the pioneer country in the development of hydro power. Every type of hydro power scheme has been
developed, viz. run-off- river and storage, surface and underground, conventional and pumped storage, base load and
peak load, high/ medium head and low head, large/medium and small/ mini/ micro schemes. India has hydropower
potential of 145,320 MW. 35.5 per cent of this hydro power potential has been developed/ being developed. This
necessitates accelerating the process of development of remaining 64.5 per cent of potential. Development of this
renewable, clean and non-polluting power would help in bridging the gap between the electricity demand and supply in
the Country. Development of small hydro power projects would facilitate in developing the remote locations/far-off
areas of the country by providing quality power to people living in these areas. Hydropower is necessitated to be
brought at the forefront of India’s energy transition to achieve the country’s ambitious renewable energy targets.

Apex bodies
International Association from Small Hydro (IASH)
CBIP Building
Malcha Marg, Chanakyapuri, New Delhi - 110021
Tel. : 91-11-26115984 / 26882866
Fax. : 91-11-26116347

Indian National Hydropower Association

NHPC Office Complex,
Sector 33, Faridabad-121003
Haryana, India
Phone:- +91-9312009243
Fax:- +91-129-2271913
Alternate Hydro Energy Centre
Indian Institute of Technology
Roorkee - 247 667
Uttarakhand, India
Contact Numbers:
Fax N + 91 1332-273517, 237560
Phone N+ 91 1332-274254, 285213