India's hydropower industry has demonstrated significant progress over the last ten years, transforming into a more reliable and substantial contributor to the nation's energy security. A recent comprehensive report highlights this remarkable journey and outlines a strategic, storage-focused future that is crucial for integrating other renewable sources into the grid.
A Decade of Substantial Growth and Development
The period from 2014 to 2024 marked a pivotal phase for the sector. The country's hydropower capacity witnessed a substantial increase, growing from approximately 40,530 Megawatts (MW) to over 47,000 MW. This expansion was not just about adding numbers; it involved the successful commissioning of several major projects that were stalled for years.
Notable achievements include the long-awaited completion of the 1,500 MW Nathpa Jhakri project and the 2,000 MW Subansiri Lower project in Assam and Arunachal Pradesh. These projects, once symbols of delay, are now testament to the renewed focus and execution capability within the sector. This growth has solidified hydropower's role as a stable, clean energy source that provides vital grid stability and meets peak electricity demand.
The Strategic Shift to Pumped Storage Projects
Looking ahead, the future of India's hydropower is intrinsically linked to energy storage. With the government aggressively pushing for 500 GW of renewable energy capacity by 2030, the intermittent nature of solar and wind power poses a challenge. This is where Pumped Storage Projects (PSPs) come into the picture as a game-changing solution.
PSPs act as giant batteries for the grid. They use two water reservoirs at different elevations. During periods of low electricity demand or excess solar generation, cheap power is used to pump water to the upper reservoir. When demand peaks, this water is released to the lower reservoir, generating electricity instantly. The government has identified a massive potential of about 100 GW from PSPs across the country.
To accelerate this transition, the government has approved a landmark PSP policy. This policy provides crucial support, including:waiver of interstate transmission charges and budgetary support for enabling infrastructure like roads and bridges. These incentives are designed to attract investment and make PSPs more financially viable for developers.
Overcoming Challenges for a Sustainable Future
Despite the progress, the hydropower sector continues to face hurdles. The development of large hydro projects is often complex, involving long gestation periods, high initial costs, and environmental and rehabilitation concerns. The new focus on PSPs also faces similar challenges, including land acquisition and securing clearances.
However, the government's proactive approach, through supportive policies and a clear recognition of hydropower's strategic value, is creating a more favorable environment. The sector is now poised not just for capacity addition, but for a fundamental evolution into the backbone of India's renewable energy ecosystem, ensuring a reliable and sustainable power supply for the nation's growing economy.
