OVERVIEW

OF

HYDROPOWER

DEVE LO PMENT

IN

INDIA *

P.K. Saxena Director , HCD (N&W) Directorate Central Water Commission

INTRODUCTION Hydro Power is our richest renewable and environmentally benign source of energy. Hydro power stations have the inherent ability for instantaneous starting, stopping and managing load variations which helps in improving reliability of the power system. Hydro stations are a natural choice for meeting the peak demand. The generation cost is inflation free and in fact reduces over time. A hydroelectric project has a long useful life extending to well over 50 years and helps in conserving scarce and fossil fuels and development of remote and backward regions of the country. Our country is bestowed with abundant water resources helping us in the multitude of activities, including irrigation, water supply, and hydropower. The development and judicious use of such vast water potential has always been a key subject for the planners. The steady progress of the country has resulted into widened gap between the demand and production of power necessitating increase the power generation. The source of the hydropower being cheap, eco-friendly, simple in operation and perpetual source of energy, has been given paramount importance to meet the acute energy needs of our country in coming years. POWER SCENARIO 2050 The population of India is estimated to reach a figure between 1.5 billion to 1.8 billion by the year 2050. The UN agencies have put the figure at 1.64 billion. Despite the rapid increase in population over this period of time, the per
*

capita consumption has increased from a mere 15 kWh to 632 kWh in 2005-06 and to 665 kWh in 2006-07, and is expected to be 1000 kWh by 2011-12. At the supply front, since independence there has been a sizeable growth in the power sector. At the time of independence the generating capacity in the country was only 1750 MW which has since increased to 1,40,302 MW by end of 2007. The annual generation has grown from about 5 billion units to 669.5 billion units during 2006-07. In this context, the power scenario of the country vis--vis the growth in population in the year 2050 needs concern. Even at a modest growth rate of 4 percent per annum, the demand for the power is expected to reach 8,40,000 MW which translates into 10,50,000 MW of installed capacity. THE NEED FOR PROMOTING HYDRO POWER The Hydropower potential of our country is 1,48,000 MW in addition to 10,000 MW by small /mini /micro hydropower and 94,000 MW of pumped storage schemes through 56 pumped storage schemes. All this sums up to a total of 2,52,000 of installed capacity. To meet the present demand for peaking and non-peaking power, it is estimated that a hydro-thermal mix of 40:60 would be an ideal mix. To the last estimate (31.12.2007), the total installed capacity in the country is 1,40,301.84 MW and hydro share accounts for 34,680.76 MW (24.72%). For reducing the power shortage and for increasing the hydel to total power installation ratio, from present 26% against the ideal of 40%, it is essential to develop the

Delivered in Induction training for Assistant Directors of CWC on 14th Jan 2010

hydropower potential to it fullest by the year 2050. ASSESSMENT OF HYDROPOWER POTENTIAL Based on the study of Reassessment of Hydro electric Power Potential of the country , compiled by Central Electricity Authority in 1987, the region wise hydro-electric power potential of India has been indicated in table below: Region Indus Ganga Central Rivers West Flowing East Flowing Brahmaputra Total Potential at 60% L.F (MW) 19988 10715 2740 6149 9532 34920 84044

A major share of untapped hydropower potential comprising of north, North Eastern region lies in Himalayas. The schemes / projects of hydroelectric sector shall need acceleration not only because of inherent merits of hydel schemes but also to the present pattern of demands of power. TRENDS IN DEVELOPMENT The trend in the development of hydropower is best reflected when one sees the historic past and then take up the current situation. The total hydro installation at the time of Independence in 1947 was only 508 MW when the total installed capacity, through all sources, was 1362 MW. The development of hydropower got an impetus in 1951, when several multipurpose river valley projects were taken up which included some single purpose hydropower generation projects also. There was intensive activity in the first three five year plans which included projects like Bhakra Nangal, Hirakud, Chambal, Damodar, Rihand, Koyna, Periyar, Sabarigiri, Kundah, Sharawathy, Machkund, Upper Silery, Balimela, Umium etc. The total installed capacity of hydro

power stations rose to 5900 MW and the total power capacity from all sources to 13000 MW by the end of third plan. The share of hydro in the total installed capacity reached 50 percent during this period, which was in fact the highest so far. The Central Government participation in the hydropower sector in the IV plan, enabled the initiation of major projects like Baira Siul, Salal, Loktak and Kopili in remote areas. By the end of the Sixth plan, the hydro installation capacity crossed 14000 MW. However its share in the total installed capacity dropped to 34 percent. These downward trends in proportion of hydropower continued further despite the commissioning of important hydro projects such as Salal, Kopili, Sanjay (Bhaba), Pench, Kadana, Srisailam I & II, Nagarjuna Sagar I and II , Varahi, Kadamparai, Upper Kolab, Rengali and Hirakud III. For the last two decades, the share of hydropower continues to hover around 25% - 30% of the total installed capacity through all sources. The trend of hydropower development along with the total power development during the fifty years since independence, is not compatible to what it ought to be, for a wellbalanced distribution. PRESENT SCENARIO Despite the fact that India is the 6th largest country in terms of power generation after USA, EU, China, Japan and Russia, the over all electricity shortages continue to be a major concern. The peaking shortages are about 13.8% as on 31.03.2007 on all India basis. The energy shortages on a regional basis vary in magnitude and the overall average shortages on all India basis is about 9.6%. To meet the growing demand and shortages encountered in various regions, the generation capacity needs to be doubled over the next 10 years, so as to meet the total demand both in terms of peak and energy. At present, Pumped Storage Schemes of 4,335 MW are under operation and 475 MW is under construction and 1000 MW is sanctioned but work

is yet to start. The hydro generating capacity of schemes in operation (with station capacity > 25 MW) including pumped storage schemes in the country is 34,680.76 MW (as on 31.12.2007). This capacity does not include small hydro capacity of 1,168 MW in respect of hydro power plants having installed generating capacity of up to 25 MW which has been transferred to Renewable Energy sources (RES) in the year 2007-08. Thus around 60% of the potential is untapped. CHALLENGES IN HYDROPOWER DEVELOPMENT Typically, hydro projects are high cost, long gestation projects and are highly vulnerable to any uncertainties. Several constraints have affected the pace of hydro power development. These have been technical, financial and managerial in nature and are enumerated below: Location: Hydro projects are located in remote, inaccessible, forested and often very inhospitable terrain. Developers are very often required to undertake infrastructure development for merely accessing the site and taking heavy machinery there. Despite the frequent landslides and slope failures often delay project implementation which in any case is slowed down by snowfall or prolonged monsoons. Geology Most hydro projects have been adversely affected by geological surprises especially during underground tunneling in the relatively young Himalayan mountains. Even with the best of geological investigations, occurrences of shear zones and underground lakes and streams can result into serious time and cost over-runs. Resettlement and Rehabilitation Large-scale shifting of people from their traditional habitations and livelihoods can, if not handle with the necessary sensitivity and

commitment, lead to a lot of discontentment and unrest, and hostility to the project itself. Apart from other socio-political implications, this is one major potential source for time over-runs leading to cost over-runs. Environment Issues Obtaining environment forest and wildlife clearances can be very cumbersome and timeconsuming. Besides there is lot of opposition from NGOs other activists which delays the project. Loharinagpala, Pala Maneri , Urthing Sobla and Bhaironghati are some of the recent examples. Finance Hydropower projects are capita intensive and have long gestation period. Very often the project is embroiled in environmental, R&R, interstate, international and other issues which block the capital and cause cost overruns. INITIATIVES BY THE GOVERNMENT ACCELERATED DEVELOPMENT Hydro Policy 2008 The Government has accorded a high priority to the development of the hydro potential and has taken a number of policy initiatives to address the issues impeding the hydro power development. Hydropower policy 2008 is one such initiative which seeks to induce substantial private investments in Hydro power development. A hydro capacity addition of about 30,000 MW is envisaged during the 12th Plan. Inducing private investment In last few years there has been a tremendous enthusiasm among private developers in taking up sites for development of hydropower projects. Several states have allocated sites to private developers on BOOT basis. A greater private investment through IPPs and joint ventures needs FOR

a conducive atmosphere to maintain this momentum in attracting private sector investments in this sector. Resettlement & Rehabilitation Policy Government of India has in October 2007 notified the National Policy on Resettlement and Rehabilitation (NPRR 2007), which makes a major departure from the traditional approach to resettlement and rehabilitation. The objective now is not merely to compensate project affected persons for the loss caused to them, but actually to improve their standard and quality of life. The entire process has been made more transparent and participative. Host State governments have been turned into stake-holders by stipulating that 12% of the power is given to them free cost as a royalty Facilitating Financial Viability As opposed to thermal project, hydro projects are characterized by high capital costs but very low operational costs. Longer term finance can therefore correct the present peculiarity of high initial tariffs followed by very low subsequent tariffs. Financial institutions have been made much more flexible and pro-active in financing power projects, particularly hydro projects. These measures are providing enough incentives to the developer to invest in this sector. Data Availability Preparation of a good DPR is the key to timely implementation within the estimated cost. A good DPR in turn depends to the quality of data used for preparing it. The government has taken necessary measures for making the required data available to developers in a timely and cost effective manner by instituting minimum but stream-lined procedures and without compromising concerns of security agencies.

PRIME MINISTERS 50000 MW INITIATIVE Honble Prime Minister of India launched a programme for preparation of Preliminary Feasibility Reports (PFRs) of Hydroelectric Schemes in 2003 at a cost amounting to Rs. 24.95 crores. The work of preparation of PFRs of 162 schemes was awarded to seven CPSUs/State agencies as Consultants. The schemes are located in 16 States as below: Sl No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 State Andhra Arunachal Chhattisgarh Himachal J&K Karnataka Kerala Madhya Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Sikkim Uttaranchal Total No of Schemes 1 42 5 15 13 5 2 3 9 3 11 3 3 4 10 33 Installed Capacity 81 27293 848 3328 2675 1900 126 205 411 362 931 1500 370 1189 1469 5282 47970

The Pre-Feasibility Reports prepared under the 50,000 MW Initiative have already been completed ahead of schedule and are made available in the public domain. PFRs prepared under the programme would serve useful purpose of fixing the inter-se priority for implementation of the schemes as also as a basis and reference for taking up on Survey & Investigations and preparation of DPRs of Hydroelectric Schemes. This will help the developer for prioritization and implementation, salient features, layout maps and other information

generally required for appreciation of the magnitude of works involved, preliminary cost estimates and financial aspects. CONCLUSIONS With about nineteen major river systems including the Brahmaputra and the Indus rising among the Himalayas and the physical geography of Himalayan region, our country provides an excellent hydropower potential. There is an urgent need of harnessing this huge hydropower resource to alleviate the gap between demand and supply of power in mid 21st century. Nevertheless, there are a number of practical challenges to the realization of this potential. This does not render hydro development impossible, but does mean that sustained efforts are required at every level. The involvement of private sector and joint ventures with the neighboring countries can go a long way towards achieving the goal of power for all in the coming years. REFERENCES 1. Sud S.C., Kumar Rajesh and Saxena P.K. (2001) - Harnessing the Himalayas 2. Water : Vision 2050 (1999) - Theme paper for water resources day, Indian Water Resources Society 3. Ministry of Water Resources (1998) Water Resources development in India (1947-1997). 4. Hydro Power Policy 2008 Ministry of Power, Government of India