India's hydropower industry has demonstrated remarkable growth over the past decade, achieving a significant 57% increase in installed capacity between 2014 and 2024. This substantial expansion represents a crucial milestone in the nation's renewable energy journey, adding approximately 4,750 MW of clean energy generation capability to the national grid.
A Decade of Hydropower Expansion
The sector's impressive journey saw capacity grow from 40,530 MW in March 2014 to 46,850 MW by February 2024, with an additional 18,033 MW currently under various stages of development. This growth trajectory positions hydropower as a cornerstone of India's renewable energy strategy, particularly given its unique ability to provide stable, dispatchable power compared to intermittent sources like solar and wind.
According to the Central Electricity Authority's National Electricity Plan, India requires 41,650 MW of pumped storage projects and 22,600 MW of conventional hydropower to meet its energy needs through 2031-32. This ambitious target underscores the critical role hydropower will play in ensuring grid stability and supporting the integration of variable renewable energy sources.
The Storage Revolution: Pumped Storage Projects Take Center Stage
The future of India's hydropower sector is increasingly focused on pumped storage projects (PSPs), which act as giant batteries for the electrical grid. These projects utilize two water reservoirs at different elevations, pumping water to the upper reservoir during periods of low electricity demand and generating power by releasing it through turbines during peak demand.
The government has identified PSP potential of about 103 GW across the country, with 2.7 GW already operational and 50 GW at various stages of development. This represents a massive opportunity for energy storage that can help balance the grid as India continues to expand its solar and wind capacity.
Recent policy initiatives have significantly boosted the sector's prospects. The 2023 Pumped Storage Project Guidelines introduced streamlined procedures for forest and environmental clearances, along with fiscal support for enabling infrastructure. Additionally, hydropower projects have been granted renewable energy status, and large investments have been allocated for infrastructure development in the Himalayan region where many projects are located.
Benefits Beyond Electricity Generation
The advantages of hydropower development extend far beyond mere electricity production. These projects provide multiple ancillary services that are essential for grid stability, including voltage and frequency support, black start capability, and reactive power support. Furthermore, they contribute to water security through irrigation and drinking water supply, flood control, and regional development.
States with significant hydropower potential are positioned to benefit substantially from this growth. Himachal Pradesh leads with 30 identified PSP projects totaling 19,210 MW, followed by Maharashtra with 11 projects (7,260 MW) and Madhya Pradesh with 6 projects (5,600 MW). This geographical distribution highlights how hydropower development can drive economic growth across multiple regions while supporting national energy security objectives.
As India continues its transition toward clean energy, hydropower's role as a stable, reliable backbone for the grid becomes increasingly vital. The sector's decade of progress has laid a strong foundation for a future where energy storage and flexible generation capacity will be essential for integrating higher shares of renewable energy and ensuring power system stability.
