New Delhi: The government is working on a scheme to promote the setting up of small hydro power plants in which developers may receive up to 30% of the project cost as central assistance, people aware of the development told ET.
If approved, the plan could help double the installed capacity of such projects in the country to 10 GW in a decade, they said.
India operates a little over 5 GW of small hydro projects-those with capacity of 25 MW or less. The policies for these projects are conceived and executed by the ministry of new and renewable energy.
The potential of small hydro projects in the country has been estimated at 21 GW at various locations. In Jammu & Kashmir, the potential is 1.3 GW, of which, less than 200 MW has been harnessed.
In contrast, India has 133 GW of "exploitable" large hydro power potential. So far, 48 GW of large hydro power capacity has been installed and operating, which include pumped storage projects, while around 13 GW of projects are under construction.
While India is adding non-fossil fuel energy sources, the focus on small hydro power projects has also grown because they require lesser land, have longer life span, provide local irrigation, create and jobs, among others benefits.
They generally have a lower environmental impact compared with large hydro projects, as they typically do not involve the displacement of local communities or significant deforestation, one of the persons cited earlier said.
These projects are often canal-based or run-of-river types that utilise flowing water without the need for large-scale water storage, making them a cleaner and more environmentally sustainable option, the person said.
They also have higher flexibility of operation, can give spinning or extra generating capacity that is ready to provide immediate power, and are usually located at the tail end of the transmission network where electricity generated is directly used within the local community or grid, reducing transmission losses.
Typically, such a project would cost ₹10-12 crore per MW.
The cost of construction of hydro power projects is increasing with every passing year, according to an industry official.
"These are high investment projects. So, initially, they need relief while construction," the person quoted above said. "Part payment could be made in the beginning, and the rest at the completion of the project."
With the scheme, an entire ecosystem gets energised, which brings in confidence in the projects, especially for lenders and local authorities, the person said.
If approved, the plan could help double the installed capacity of such projects in the country to 10 GW in a decade, they said.
India operates a little over 5 GW of small hydro projects-those with capacity of 25 MW or less. The policies for these projects are conceived and executed by the ministry of new and renewable energy.
The potential of small hydro projects in the country has been estimated at 21 GW at various locations. In Jammu & Kashmir, the potential is 1.3 GW, of which, less than 200 MW has been harnessed.
In contrast, India has 133 GW of "exploitable" large hydro power potential. So far, 48 GW of large hydro power capacity has been installed and operating, which include pumped storage projects, while around 13 GW of projects are under construction.
While India is adding non-fossil fuel energy sources, the focus on small hydro power projects has also grown because they require lesser land, have longer life span, provide local irrigation, create and jobs, among others benefits.
They generally have a lower environmental impact compared with large hydro projects, as they typically do not involve the displacement of local communities or significant deforestation, one of the persons cited earlier said.
These projects are often canal-based or run-of-river types that utilise flowing water without the need for large-scale water storage, making them a cleaner and more environmentally sustainable option, the person said.
They also have higher flexibility of operation, can give spinning or extra generating capacity that is ready to provide immediate power, and are usually located at the tail end of the transmission network where electricity generated is directly used within the local community or grid, reducing transmission losses.
Typically, such a project would cost ₹10-12 crore per MW.
The cost of construction of hydro power projects is increasing with every passing year, according to an industry official.
"These are high investment projects. So, initially, they need relief while construction," the person quoted above said. "Part payment could be made in the beginning, and the rest at the completion of the project."
With the scheme, an entire ecosystem gets energised, which brings in confidence in the projects, especially for lenders and local authorities, the person said.
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