Central Electricity Authority - Presentation on "The Potential for Hydropower in India's Energy Mix"
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Central Electricity Authority
Presentation
on
“The Potential for Hydropower in
India’s Energy Mix”
1
Indian Power Scenario Total Installed Capacity : 284303.39.62 MW 2
Rise and Decline of Hydro Share
As on 31.12.2015
• Maximum Share - 50.62% in 1962-63
• Present Share - 15 %
3Declining Hydro Share
5780,
0, 0% 1095, 2%
3%
36470,
13%
14460, 42433,
2865, 34% 15%
2936, 49%
1,94,199
51% 27029, , 70%
63%
Thermal(70%) Hydro(15%)
Res(13%) Nuclear(2%)
1962-63 Vs. 1986–87 Vs. 2014-15Reason for Decline of Share of Hydro Power
in Indian Energy Mix
• Share of hydro has declined from about 51% (2936 MW out of a total of 5801
MW) in 1962-63 to about 15% (42433 MW out of a total of 278883 MW) now.
Following factors have contributed to the slow growth/ decline of hydro share:
• Upto 1960s, the major emphasis of the Govt. was on development of multi-
purpose reservoir based hydro projects like Hirakund, Bhakhra, Damodar Valley
projects etc. mainly to have irrigation for better food security which also led to
development of hydro capacity.
• Lack of adequate infrastructure, drying-up of funding by bi-lateral/ multi-lateral
agencies, increasingly stringent environment clearance regime after 1970s due to
world-wide focus on environmental, ecological and R&R issues and activism
against development of hydro projects by NGOs/ Environmental activists.
• Greater emphasis on rapid development of thermal power during 1970s for
quicker capacity addition in view of large scale industrialization.
• In addition, factors like Land acquisition issues, R&R issues, inter-state issues
and non-tie-up/ non-availability of requisite finances on long term basis etc. have
further slowed down the development of hydro power. 5Hydro Power - Sustainable, Clean and Green Alternative • Renewable, Non-Polluting and Environmental Friendly. Promotes Conservation of Fossil Fuel. • No fuel cost, remains escalation free and economical in long run. • Improves quality of life in remote hilly and backward areas by accruing incidental benefits of electrification, industrialization & road/ rail communication development. • Ability for instantaneous starting, stopping and load variation, thereby ideally suited for peaking operation and improves reliability of power system. • Affords flexibility of operation viz. ca be operated as base load, peak load station as per requirement of the system. • Storage projects improve lean season flows & provide benefits of flood control, irrigation, drinking water supply, recreation facilities etc, thus help in maximum utilization of water resources. • Pumped Storage Hydro schemes besides providing peaking power also act as Energy storage devices. • Improves Reliability of Power System, particularly in view 6of emphasis on Solar/ Wind power
Advantages of Hydropower
Environmental Sustainability
Clean and Green Alternative • No consumptive use of water
• Provides Drinking water, I&FC
• No fossil fuel
• Increased River Flow in lean seasons
• Negligible Green House Gas
• Basin Study based planning
Emission (15/44 projects dropped in Siang Basin)
• No toxic bye-products • CAT Plan & Compensatory Afforestation
• Substitutes fossil fuels
Economic Sustainability
GHG Emissions per • High Tariffs only in initial years
Source of • No geopolitical risks or price rise risk
kWh In Gram
Power • Assured source of power
Equivalent CO2
• Cheapest Power in long run
Thermal – Coal 957
(No Fuel, 150 yrs life (Bhakra–30 ps)
Thermal – Gas 422
RES – Solar 38 Social Sustainability
Hydro – Storage 10 • Improves living condition, income,
employment & infrastructure
RES – Wind 9
• Adequate R&R package, LADF etc
Nuclear 6 • Incraesed Agriculture Productivity
Hydro - RoR 4 (Hirakud & Bhakra Dam – Green
Source: Hydro Quebec, Canada Revolution)
7
7Present Scenario of Hydro Power Development
(Above 25 MW)
Capacity*
(MW)
Identified Hydro-Electric Potential
Total 148701
Above 25 MW 145320
Schemes in Operation 37838
Schemes under Construction 12582
* Excluding Pumped Storage Schemes
8Scenario of Development of Balance Hydro Electric Potential
(Above 25 MW)
Capacity* (MW)
Hydro Potential under process of Development
i) DPRs Concurred by CEA but yet to be taken up 25678
under construction
ii) DPRs under examination in CEA 6989
iii) DPRs returned to project authorities for revision and 8496
other reasons
iv) Under S&I/ DPR under preparation 13421
Total 54584
* Excluding Pumped Storage Schemes
9Development of Pumped Storage Schemes (PSS)
Nos. Capacity
(MW)
Identified Potential 63 96524
In Operation 9 4785.6
Under Construction 2 1080
DPR prepared and submitted to CEA 1 1000
• Hitherto, development of PSS was very slow mainly due to thust on
development of conventional hydro potential as well as non-availability
of adequate off-peak energy in the system.
• With increasing share of renewables in the system and with targeted
capacity of 100 GW from Solar and 40 GW from Wind by 2022,
tremendous push to the development of PSS is essential to integrate
renewables in the grid and to stabilize the grid.
10Sector-Wise Hydro Projects in Operation
Sector Nos. I.C. (MW) %
Central 38 14357.72 33.68
State 140 25111.70 58.91
Private 15 3154.00 7.39
Total 193 42623.42 * 100
* - includes 9 pumped storage schemes (PSS) with installed capacity of
4785.6
11HYDRO CAPACITY ADDITION PROPOSED DURING 12TH
PLAN
Sector Total Commissioned Under
(MW) (MW) Execution
(MW)
Central 6004 2424 3580
Sector (40.37%) (59.63%)
State 1608 632 976
Sector (39.30%) (60.70%)
Private 3285 595 2690
Sector (18.11%) (81.89%)
Total: 10897 3651 7246
(33.50%) (66.50%)
12Prioritisation of upcoming hydro projects
No. of Total Capacity
Category Status
Stations (MW)
Ongoing projects. Likely
to be completed by 2018-
Category - I 36 8190
19
Construction started but
Category - II 11 4852 stalled
TEC received but
Category- III 35 24025 awaiting other clearances
13ISSUES INVOLVED IN SLOW PACE OF HYDRO
DEVELOPMENT AND SUGGESTED SOLUTIONS
a) Land Acquisition Issues
b) Environment and Forest issues
c) Rehabilitation & Resettlement Issues
d) Inadequate Infrastructural facilities
e) Law & Order / Local issues
f) Geological Surprises
g) Natural Calamities
h) Inter-state Issues
i) Cumulative Basin StudiesPOLICY INITIATIVES TAKEN FOR INCREASING THE
HYDRO CAPACITY
1. National Electricity Policy
2. Hydro Power Policy- 2008
3. National Rehabilitation & Resettlement Policy, 2007
4. Right to Fair Compensation And Transparency In Land
Acquisition, Rehabilitation And Resettlement Act, 2013
15OTHER MEASURES FOR INCREASING HYDRO
• Power Project Monitoring Panel set up by MOP to independently
follow up & monitor progress of the hydro projects.
• Regular review meetings being taken by MOP/ CEA with equipment
manufacturers, State Utilities/ CPSUs/ Project developers, etc. to
sort out the critical issues.
• Review meetings being taken by MoP/ CEA with BRO, MORTH etc.
to sort out the infrastructure issues.
• Consultation Process evolved for Fast Tracking of S&I activities and
preparation of Quality DPRs
• Time bound appraisal norms evolved in CEA for examination of
DPRs.
• A no. of projects have been prioritized, being monitored regularly at
highest levels by GOI for their expeditious implementation.
• Central Electricity Authority (CEA) is monitoring the progress of each
project regularly through frequent site visits, interaction with the
developers and critical study of monthly progress reports.
16Need for Hydropower Development
Balancing Requirement for Renewable Growth
Projected Energy Mix by 2030
India’s Intended Nationally
Determined Contribution (INDC) Source Capacity (GW)
•To reduce the emissions intensity of Solar 150
its GDP by 33 to 35% by 2030 from Wind 85
2005 level Thermal 479
•To achieve about 40% cumulative Gas 25
electric power installed capacity from
Hydro 75
non-fossil fuel based energy
resources by 2030 Nuclear 15
•To create additional Carbon Sink of Biomass 12
2.5-3 billion tonnes of CO2 equivalent Waste 2
Total 843
17Features of Existing Tariff Policy for Hydro Projects
• Hydro exempted from competitive bidding
• Option of getting the tariff determined by App. Commission
– If minimum 60% is tied up in long term PPA; balance open
for merchant sale
• Expenditure incurred or committed to be incurred by the
project developer for getting project site allotted (except free
power up to 13%)
– Neither to be included in the project cost,
– nor any such expenditure to be passed through tariff.
• Provision stipulating time period for commissioning of HEP
18 18Emerging Issues and Challenges
• Increasing Tariff especially in initial years
(Refusal to sign PPAs for new hydro projects)
• Non-implementation of Differential Tariff for Peak and Off-peak power
in Regulations
• Huge Impact on Tariff due to Water Cess (By J&K and now
Uttarakhand)
Different impact in various projects (Tariff increase in Salal-over 100%)
• Impact of Enabling/ Infrastructure Cost on Tariff (approx. 20% of
project cost)
• Land Acquisition being treated as Controllable Parameter in the
Regulations
• Lack of long-term financing instruments
• Uniform Rate of Return on Equity for all types of generating stations
19 19WAY FORWARD
• Environment & Forest clearances should be accorded expeditiously
in a time bound manner and the projects having necessary
clearances from CEA & MoEF should be allowed to take off.
• Project wise specific e-flows need to be prescribed based on
cumulative basin study. E-flow norms should not be revised
retrospectively as it might render the Project unviable.
• Free-flow stretch requirement may be relaxed by MOEF depending
upon slope of the river at the Project site.
• Need to give boost to the development of Pumped Storage Schemes
in view of likely availability of large intermittent and variant energy in
the system.
• Implementation of Differential Tariff for Peak and Off-peak power
• Fiscal Incentives and Concessional Funding to reduce the project
cost and the Tariff
20WAY FORWARD
• To facilitate faster growth of hydro power development, all
hydro projects irrespective of their size and type could covered
under REC regime, presently applicable to HEPs below 25
MW only.
• Incentivizing all Hydropower projects by extending all
applicable support/ subsidy/ benefits applicable to projects
below 25 MW capacity.
• Exempting Hydropower projects from RPO
• Innovative Financing instruments with flexible options :
Front-loading, Back loading, EQI/ EMI, Ballooning, longer
repayment period etc.
• Withdrawal of free power to State Govts. which charge Water
Cess
21 2122
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