Harnessing Hydro

Priyank Jain

Topics

• Status and development

• Upcoming capacity

• Challenges

• Way ahead

Introduction

• Over 97,000 MW of the country’s total hydro potential remains untapped.

• Hydro capacity addition has steadily declines ,even after states have encouraged the private participation.

Ifs and buts

Benefits

Minimum Cost volatility

Economics of scale

Clean power generation

But

Stringent environmental norms

Poor infrastructure support

Growing development challenges

Status2010-2011

10% growth Good Monsoon

• 1,181 MW Addition

• 60%Northern &

Southern

• Generation Fall per MW

• 3.97MUs(94-95) to 2.96 (10-11)Industry Report

Dec 2011617

Units177

stations38,748

MW

Performance of HYDRO power plants depends

Seasonal Variation

Water Flow (Depletion in river flow due to Silting)

Variable demand

Plant performance & Poor Maintenance

Environmental & Forest clearance

Lack of Policy clarity on potential site

Development Facts

• Jaiprakash Power Ventures Limited’s commissioned 1,000 MW in Karcham Wangtoo .

7,000 MW Shifting

11th 12th plan

4.32%

2009-10 39 MW

Growth

2003-04 2010-11

Hydro Power Generations

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

April May June July August Sep Oct Nov Dec

Actual

Target

State initiatives :To promote private participation

Himachal Pradesh

J & K

Arunachal Pradesh

Sikkim

Uttarakhand

Mizoram

Playing with Policies

• Policy criteria to allocate the capacities have been mostly based on :

• Upfront premium

• Share of free power

• Joint ventures

• Majorly allotted under Build-own-operate-transfer model.

• Mizoram sought viability gap funding from the union government under a PPP model .

Power Plant

49%

31%

20%

Hydro Plant

Public private PPP

But……………

• But J&K under Water Resource Act,2010 impose a tax on NHPC of Rs.1.5 billion for using water.

• Soon Himachal Pradesh also introducing HP electricity (Taxation of generation) Bill .

And…………….

• NTPC ‘s 600 MW Loharinagpala project was scrapped due to local & religious issues.

• Due to delayed environmental clearances AP’s 3,000 MW Dibang project recorded cost escalations of up to Rs 25 billion.

• ADB & WB are encouraging state governments to adopt practices such as comprehensive social and economic planning for projects.

Upcoming capacity

Currently Execution 15,000 MW

12th plan Capacity Addition

20,334 MW

102 projects 30,193 MWEvaluated for commercial

viability ¾ in AP only

Untapped Hydro Capacity (CEA)

45,000

12,00010,500

7,000

2,100 2,000 1,800 1,780 1,2000

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

AP UK J&K HP KT WB CG MZ Other

Capacity

Capacity

Challenges

• Project completion risk (6-7 years)

• Infrastructure challenges

Way ahead

• Huge untapped potential.

• Cleaner choice.

• Can help to achieving its voluntary international commitment to reduce carbon intensity by 15 % in coming 8 -10 years.