Are we as a nation paying proper attention on harnessing hydropower at large scale?
Hydro Power is the clean, green and environmental friendly source of power. Among all the primary resources of energy, it is the only renewable source and has been recognised to be economical and preferred source of energy due to its inherent ability for instantaneous starting, stopping and load variation, thereby ideally suited for peaking operation and improves reliability of the power system.
Central Electricity Authority, an apex technical organisation under Ministry of Power, which is responsible for systematic and optimal development of all facets of power sector in the country has been putting in untiring efforts for development of all conventional resources of power including hydro power in an optimal/ environment compliant manner – more so in view of the nation’s commitment towards clean and green energy production for minimising the adverse impacts on the climate.
Will we be able to achieve the target (of commissioning hydro power plants) as planned in 12th Five Year Plan?
Efforts are being made to achieve the targeted capacity addition of 10,897 MW from hydro projects during the 12th Plan. By now, 3501 MW of hydro capacity has already been added. During the balance period of the plan, another 3,245 MW is expected to be added to the grid. However, some projects with an aggregate capacity of 4,151 MW are likely to slip to the 13th Plan due to the reasons beyond the control of the developers.
What are the main causes that delay the process?
The process of implementation of hydro projects is getting delayed due to a number of issues like delay in acquisition of land for various locations of the project such as Dam, HRT, Power House, Switch yard etc., delay the commencement / progress of works. A substantial time is lost due to lack of adequate Infrastructural facilities at the project site allotted to a developer by the State Govt. A large number of HE projects have been delayed due to geological surprises, environmental and forest issues, local issues including law & order problems, inter-state issues, contractual problems, financial crunch with the developer etc.
What is being done to accelerate this segment of the Indian power sector?
In order to accelerate implementation of hydro projects, efforts are being made to tackle the above mentioned issues at various levels. Regular review meetings are being taken by CEA/MOP to sort out issues with the developers. Site visits are also being conducted to monitor the progress at the site and resolution of various constraints. Project specific meetings are also being conducted for stranded projects – and the issues are referred to Inter-Ministerial Group for resolution.
What measures are being taken up to prevent cost over-run of the future projects?
Time over run is one of the major factors contributing to the cost over run, which could be due to the previously mentioned factors – or could also be due to other technical issues like geological surprises etc., which cannot be anticipated beforehand due to complex geology involved in most of the hydro projects in the young Himalayan Terrain.
However, past experience gathered from completed or ongoing projects is being used for investigation and planning of new projects to minimise such delays in future. CEA in consultation with other appraising agencies such as CWC, GSI, CSMRS, etc., have evolved a process in which these agencies are involved with the developers from the very beginning of S&I and preparation of DPR stage so that adequate investigations and studies are carried out and good quality DPR is prepared. With such an approach, the issues contributing towards time and cost overrun during construction of project are expected to be minimised.
How should India attract funding in this segment?
The power sector has been opened to Private Sector mainly to bring in additionality to the resources. Subsequently, hydro policy has been announced by the Government, which has also been amended from time to time in order to provide a level playing ground to the private players. As a result, hydro projects with an aggregate capacity of about 44,000 MW have been allotted by State Govts. to private developers, which are under different stages of development. During the 12th plan 3,285 MW has been targeted to materialise through private sector that is almost double the target of the state sector.
What’s your comment on complete privatisation of coming hydro-electricity generation plants?
Like any other important sector of Indian economy, there should be a proper mix of the Central/ State/ Private Sector power utilities and all sectors need to contribute for development of hydro sector. In fact, no sector should be considered as a substitute for the other instead, complementary to each other.
Do we need to launch globally open tenders for new hydropower projects (or it should be restricted to the national bidders)?
At present, the hydro projects are being allotted by the State Govts through MOU route as per the policy of State Govts and Govt of India. Development of hydro power projects is fraught with a number of uncertainties. Broadly the problems faced by developers can be grouped into those related to topographical, geological and hydrological aspects of the project location, to the issues of land requirement, submergence area, resettlement and rehabilitation etc. Given such uncertainties with major cost implications, it is very difficult for developers of HE projects to participate in Tariff based competitive bidding. Further, Tariff based competitive bidding is based on good quality DPR, which is considered as pre-requisite for tariff based bidding. Once the project is allotted to a developer for development, the survey and investigation and preparation of DPR is taken up by that developer – and then only the cost & tariff can be ascertained.
What is your comment on the present government’s interest in this field?
As per India’s Intended Nationally Determined Contribution (INDC), the emissions intensity of its GDP is to be reduced by 33 to 35% by 2030 from 2005 level and about 40% cumulative electric power installed capacity is to be generated from non-fossil fuel based energy resources by 2030. Therefore, the present government has been taking all possible steps for balanced and integrated growth of environmentally-compliant hydro projects. The government is striving for 24×7 power to the consumers at affordable prices. There has been, of late, a greater thrust on development of pumped storage hydro projects as well in view of availability of more and more infirm and off-peak energy likely in the system due to large thermal capacity additions apart from emphasis on renewable sources like solar and wind. Hydro projects with their flexible operation are required to provide grid security and stability in addition to generating green and clean power.
What would you like to communicate to the stakeholders of the Indian hydropower (large) segment?
I would like to take this opportunity to call upon all the developers that hydro power is likely to remain an essential component of our Indian power system and would contribute to the target of clean and green energy. In light of availability of more and more infirm and off-peak energy in the system due to large thermal capacity additions that have already taken place apart from emphasis of the government on Renewable Energy Sources (RES), the development of hydro projects including pumped storage projects would be a desired option – and the sector is likely to yield very good returns in the long run.
