By Udit Garg, Director, Kundan Green Energy
The Central Electricity Authority (CEA) estimates that India has a hydropower potential of 84,044 MW with a 60 percent load factor. This amounts to an installed capacity of approximately 148,701 MW for both storage and run-of-river based schemes. Additionally, there is an identified pumped storage potential of 96,000 MW. As of now, India has installed about 51 GW of its total hydropower potential, ranking it fifth globally in terms of installed capacity. However, a significant portion of India’s hydropower potential remains untapped, with only 29 percent of the total hydroelectric potential of 145,320 MW being developed. Approximately 100 GW of electricity potential in India’s rivers remains unutilised. Given our commitment to reducing emissions intensity per unit GDP and increasing the cumulative electric power installed capacity of non-fossil fuel-based energy resources, it is imperative that we harness this untapped potential.
Hydropower is an intricate energy option. Unlike solar, where simple solar panels in high sunshine areas are sufficient to harness electricity and unlike wind power, with turbine installation in high-wind velocity areas, hydropower is complex to set up. For one, it is capital- and time-intensive. Key factors that directly affect hydropower project costs are land, labour, cost of finance, long gestation periods, project size, silting and project access, in addition to geological surprises. This, however, augurs well in the long term. Compared to other electricity sources, hydropower is cost effective in terms of maintenance, operations, and fuel. The significant upfront costs notwithstanding, hydropower is the backbone of low carbon electricity generation. Compared to alternative sources, hydropower has relatively lower costs throughout the full project lifecycle in terms of maintenance, operations, and fuel. The longer lifespan of hydropower projects is complemented by the fact that, in addition to their structural longevity, equipment operates for extended periods of time without requiring replacements or repairs. Here are the salient aspects of hydropower:
- All hydropower plants: storage, run-of-river, and pumped storage provide immense benefits, such as clean energy, 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.
- Considering the cost overruns of delayed and stalled projects and the investments required for concurred projects as well as those under the survey and investigation stages, a total investment of Rs 1,737 billion will be required for the realisation of the total hydropower capacity. The magnitude of this investment is likely to increase with further delays in the execution of these projects.
- Considering the inherent variability of solar and wind power and the country’s need to go green, the grid-balancing act will have to be increasingly taken over from coal by hydropower, making its development essential for the Indian power system. Hydropower plants have the ability to be quickly ramped-up, especially in the case of pumped-storage hydropower plants. Unfortunately, India has only nine of these plants developed so far.
- The financing sentiment in the hydropower sector has been quite damp in the past two years, with no major financial closures being reported. Stressed projects and assets have led to mergers and acquisitions in the sector as companies are looking to sell assets to reduce the burden of debt.
