Small Hydro Power Development In India

Arvind Gupta

Enrollment- 12512006

M.Tech.(AHES) ‘12-’14

IIT Roorkee

Contents:

1. Introduction2. SHP – A Brief Description3. A Brief History Of SHP 4. SHP – Today5. SWOT Analysis

1. Strength2. Weaknesses3. Opportunities4. Threats

6. Government policies and private sector initiatives for SHP development in India

7. References

Introduction • As India aspires for a growth rate of 8-9%, its energy needs

are increasing correspondingly. • It is expected that the power demand is expected to rise at

the rate of 10% every year.

India’s Energy Consumption

Consequences:

1.Increasingly dependent on fossil fuels such as coal, oil and gas.

2.Rising prices of oil and gas along with shortages in future are causing concerns about the security of energy supply.

3. Increased use of fossil fuels also causes environmental problems both on local and global scales.

What We Need??

There is urgent need for the country to develop a sustainable path of energy development.

Sustainable Energy!! How???

Promotion of Energy Conservation Increased use of Renewable Energy Sources

Options We Have… Wind Small Hydro Solar Biomass

Potential and Installed Capacity Of RE - 2011

Why Small Hydro Power!!??

Small Hydro represents “Highest Density” resource among the Renewable sources.

Economically viable.

Reliable, Continuous & Inflation free.

Energy pay-back time(EPBT) is less.

Green house gas emission is less.

Clean Renewable Water Power.

No process Waste.

Small Hydro Power – A Brief DescriptionSmall hydro is the development of hydroelectric power on a scale serving a small community or industrial plant.

Indian Classification of SHP

MICRO Up to 100kW

MINI 100kW to 2000kW

SMALL 2001kW to 25000kW

Hydro power project up to 25000kW is known as small hydro power project.Further SHP is classified as follows:

The total potential of Small Hydro Power in India is estimated to be 15384.15 MW as on 30.06.2011.

As on 30.06.2011, 20% of the available potential has been exploited totaling 2953.58 MW.

In addition to these a total of 369 projects are under installation across India which will add another 1192.55 MW

Let Us Know

A Brief History of SHPFirst SHP was commissioned in 1897 at Darjeeling, W.B., with capacity of 130kW.

Secondly, in 1902, the Sivasamudram project of 3000kW was installed in Mysore, Karnataka.

Till 1947, we had an installed capacity of 1362 MW, it included 508 MW from hydro power, mainly from small and medium size projects.

Till 1997, India added 85,019 MW to its power generation. It included 21644 MW of Hydro Power, this time mainly from large hydro.

In late 80’s for focused attention to SHP, small Hydro was brought under the ambit of Ministry of New And Renewable Energy(MNRE).

Then Came the 90’sThe decade of 90’s saw a firm footing for the development of small hydro power in India.

Demonstration projects with new technical and engineering concepts.

R&D projects and a dedicated center namely Alternate Hydro Energy Center(AHEC) at University of Roorkee(now IIT, Roorkee) were supported

Database of potential SHP sites developed, master plan prepared.

A preinvestment study by Energy Sector Management Assistance Program(EAMAP).

Manufacturing base for SHP equipment was strengthened

SHP - TodaySmall Hydro Power ( SHP) Programme is one of the thrust areas of power generation from renewable in the MNRE.

The Ministry is encouraging development of small hydro projects both in the public as well as private sector.

Aim Of MNRECapacity addition of 1400 MW by the end of 11th plan.

Capacity up to 6000 MW by the end of 12th plan.

Lower the cost of equipment, increase its reliability.

Set up projects in areas which give the maximum advantage.

Potential In India

 Estimated potential 15, 500 MW.

50% lies in the States of Himachal Pradesh, Uttarakhand, Jammu & Kashmir and Arunachal Pradesh.

MNRE has created a database of 5,415 potential sites with an aggregate capacity of 14,305.47 MW.

By the end of 11th plan capacity would be 3375 MW.

In January’12, the total capacity of SHP has been reported as 3300 MW.

State wise Potential and Projects(As on 30.06.2011)

Contd…

Contd…

3 MW Small Hydro Power Project, Darjeeling Distt., WB

1 MW Small Hydro ProjectKullu, Himachal Pradesh

1 MW Small Hydro Project, Sangrur, Punjab

SWOT Analysis

1.Strengths

No fuel cost, Inflation free. Operational flexibility. No issues like deforestation and resettlement. Potential to meet power requirements of remote and isolated areas. Can improve the economic activities in villages and remote areas. Now good manufacturing base and almost all equipment requirements are indigenously meet. Equipments efficiency more than 85%.

SHP for Rural Development:

Also…

2.Weaknesses

water being State subject, projects are governed by the State policies and the potential sites are allotted by the State to private developers.

Time consuming process for allotment of sites and statutory clearances including land acquisition, forest clearance, irrigation clearance etc. 

The projects have relatively longer gestation period due to difficult terrain and limited working season.

3.Opportunities

The estimated potential for power generation from SHP is over 15,000 MW. So far only 20% of the identified potential in the country has been exploited.

The States of Arunachal Pradesh, Himachal Pradesh, Jammu & Kashmir and Uttarakhand have highest potential for development of small hydro. All the four States have policy to invite private sector to set up SHP projects.

The State of Karnataka has allotted 300 projects of about 2000 MW, Chhattisgarh has allotted 70 projects aggregating to 685 MW, Maharashtra has allotted 41 projects of 135 MW and the State of Odisha has allotted 29 SHP projects of 369 MW to the private sector. These States can contribute a lot in providing opportunities to harness this potential.

4.Threats

States may be reluctant to sign long term PPAs with the developers.SHP projects are normally set up in hilly areas. The land required to set up project may have some trees or forest cover. Hence, the project would require compulsory forest clearance.Water of the river / canal is also diverted for a limited distance to generate electric power and hence this may also have some impact on the environment.Sometimes SHP developers do face objections from the local community.Time taken in obtaining various clearances at the State level, transfer of land, forest clearance, availability of reliable hydrological data, timely creation of suitable power evacuation facilities are the main issues

Government policies and private sector initiatives for SHP development in India

Soft loans are provided to small hydro projects through government financial institutions such as Indian Renewable Energy Development Agency (IREDA), Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).

Government of India provides financial subsidy to power generating companies in public/private sector and NGO's for establishing new, renovation, modernization and up rating of small hydro plants.

References:

1) Ministry of New & Renewable Energy2) Small Hydro Development in India, Praveen Saxena,

International Conference on Small Hydro Power, Sri Lanka Oct’2007

3) Indian Renewable Energy Development Agency(IREDA)4) Alternate Hydro Energy Centre, IIT Roorkee5) Energy Alternatives India(EAI)6) United Nations Industrial Development Organisation(UNIDO)7) ICRA Limited (formerly Investment Information and Credit

Rating Agency of India Limited)

Thank You!