India is on the brink of a significant energy transition, aiming to install 500 GW of renewable energy capacity by 2030. As the nation propels towards a cleaner economy, a substantial increase in energy production from solar, wind, and hydroelectric sources is imperative. However, despite the ambitious targets, hydroelectric power installation has not kept pace. This brings to light the necessity of a new hydropower policy, a development crucial for India’s sustainable energy journey.
What’s Happening?
Currently, India boasts an installed hydropower capacity of 52 GW, with an additional 18 GW under implementation. The government targets a capacity of 78 GW by 2030. However, the hydropower generation for FY24 has fallen short due to variable monsoon rains, the El Nino phenomenon, and operational challenges in Sikkim, where 2 GW capacity remains inoperative since October 2023.
As mentioned in the Mint, Union Power Minister R.K. Singh highlighted a 14% decrease in hydropower generation in the first half of FY24 compared to the same period in FY23.
Hydropower forms only 11% of the current installed capacity as of March 2023
Challenges with the Existing Policy
Despite the introduction of a hydropower policy in 2008, issues such as land acquisition, bureaucratic hurdles, and environmental clearances hindered project development. India’s 67th ranking on the World Economic Forum’s Energy Transition Index underscores the need for a new policy to address gaps in the existing one.
What to Expect from the New Policy?
The upcoming policy aims to address critical issues developers face, such as bearing infrastructure costs and managing cost overruns. It is expected to provide budgetary support and incentives for developers to construct essential infrastructure. The policy will rationalise tariffs, ensuring viability, and may also promote pumped hydro projects, enabling power storage and release as needed. These projects also play a strategic role in safeguarding India’s lower riparian rights against China’s dam-building activities along the Brahmaputra River.
What’s Next?
If appropriately designed, the new policy has the potential to boost hydropower installation, addressing the challenges that have hampered progress. It positions India for significant strides in energy transition and the ability to counterbalance large-scale projects in neighbouring countries.
In conclusion, the new hydropower policy could mark a turning point for India in the energy transition.
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