The cost of installing one megawatt (MW) capacity in a hydroelectric project is Rs.6-7 crore.

A cost-plus
model, currently applicable till 2015, promises assured returns over the investment made and comes in
the backdrop of hydropower capacity comprising only 17.55% or 39,623 MW of Indias installed power
generation capacity of 225,794 MW.

Bhutan
Ongoing cooperation between India and Bhutan in the hydropower sector is covered
under the 2006 agreement on cooperation in Hydropower between the two countries
and the Protocol to the 2006 agreement signed in March, 2009 thereof. Under the
Protocol, Government of India has agreed to develop 10,000 MWs of hydropower in
Bhutan for export of surplus power to India by 2020
Three hydro-electric projects (HEPs) totaling 1416 MW, (336 MW Chukha HEP, the 60 MW Kurichu HEP, and
the 1020 MW Tala HEP), are already exporting electricity to India
http://www.indianembassythimphu.bt/relationpages.php?rid=1 (link to read for hydro betwn
Bhutan india)
It is unfortunate that India is facing a heat wave. Lack of power is a big constraint to maintain Indias
growth rate. While Bhutan has been endowed with abundant hydropower resources, so far we have
commissioned three major hydropower projects while three more are under construction. The surplus
electricity generated by our hydropower plants is exported to India. While there is very little we can do
to alleviate the power crisis in India in the immediate future it only goes to show that Bhutan and India
must tap the full potential of the hydropower industry in Bhutan, which is the center piece of our
bilateral cooperation.

Cooperation in the hydropower sector is full of opportunities and both Bhutan and India have
recognized this. We are seriously working on constructing seven more hydropower plants in Bhutan of
which the construction of a 600MW plant will commence this year. The least we can expect for the two
governments is to expedite the construction of the power plants in Bhutan to address a fraction of
Indias huge demand for power.
Bhutan and India are always held in the spirit of friendship and mutual understanding, and there has
never been any discontentment or difficulties that resulted due to tariff revisions. We are confident that
this spirit will prevail in the future as well.



Hydro electricity is a crucial and a clean source of
power. In India, after thermal energy, hydro
electricity is the second most important source of
energy. Of the total 2,25,793.10 MW of installed
power capacity, hydro accounts for 17.55% (as on
June 30, 2013). According to the International
Energy Agency (IEA), net installed capacity of hydro
electricity globally is 999 GW, with ten countries
accounting for 66% of the capacity. India ranks
seventh in the list. In terms of using hydro sources
in total domestic electricity generation, Norway
ranks first with 95.3% of electricity coming from the
hydro sources.

The hydropower potential of India is
around 1,45,000 MW and at 60% load
factor, it can meet the demand of
around 85,000 MW. So far, India has
exploited around 26% of its
hydropower potential. As per the
latest data available, India has got
39,896.40 MW of installed capacity. An
additional 14,502 MW of hydropower
is under construction and also
projects with a capacity of 25,165 MW
have been approved by the Central
Electricity Authority of India (CEA) - a
statutory organization which advises
the government on matters relating to
the National Electricity Policy. Another
8,830 MW of hydro power have been proposed by a number of states but are yet to be approved by the
CEA.
The overall generation in the country saw an increase of 3.96%, from 877 billion units (BU) during 2011-
12 to 911.652 BU during 2012-13. Between these periods, hydro power generation saw an upward
change of 12.93% (CY12 vs CY13)














The Northern region boasts of 15,569.75 MW of installed capacity of hydro power utilities in India
making it the region with the maximum installed capacity

High Capital Cost is a major issue. The specific cost of a hydro power station (Rs. In Billion /MW) is
typically 0.06 to 0.07 compared to 0.04 to 0.05 for a thermal power station, depending upon the site
characteristics and the type of thermal plant. This gap widens when private financiers require fixed price
EPC contracts, because the contingency that has to be priced in for hydro is much higher than for
thermal power projects.