Small Hydro Power

Among the various renewable sources of energy, small hydro is significant in the form of decentralised power generation, even in hilly regions where the terrain is difficult for promotion of other energy sources. All projects between 3 MW and 25 MW are considered as Small Hydro Projects. Small Hydro Power (SHP) project essentially harness energy from flowing or falling water from rivers, rivulets, artificially created storage dams or canal drops.

The small hydro power (SHP) sector (upto 25 MW station capacity) is moving towards attaining commercial status in India. SHP projects are increasingly becoming economically viable. It has been recognized that SHP can play a role in improving the energy position in some parts of India and in particular in remote and inaccessible areas. The gestation period and capital investments are getting reduced in SHP projects. While small water streams are being tapped in the hilly areas, canal drops are being exploited for generation of power in the plain areas.

Potential

The potential of small hydro power projects is estimated at 15,000 MWe, not all of which might be technically feasible and economically viable. Technically feasible potential of identified sites, which are around 4400 in number, is placed at around 10,500 MWe.

A database has been created for most potential sites by collecting information from various sources and the State Governments. The Ministry is in the process of augmenting renewable energy resource database and bringing it on a GIS platform. Survey of India, Indian Meteorological Department and the National Remote Sensing Agency have provided digitized data including topographical maps, land use maps, time series data on precipitation, rainfall etc. Hydrological modeling for the Beas basin in Himachal Pradesh is being done using this data to identify potential hydro sites, including estimated discharge data and power potential.

State Wise Details of Identified SHP Sites upto 25 MW Capacity

Capacity Installed

The cumulative installed capacity of grid interactive small hydro power projects up to 31.3.2006 is 1826 MW. During 2006-07, 79 MW have been installed up to January 01, 2007 and as per trends it is likely that a total of 120 MW would be added during the year. With this, the capacity addition during the 10th Plan is likely to be 510 MW. Apart from this, projects aggregating 394 MW are under implementation.

Progress

Till January 01, 2005, 514 SHP projects with an aggregate installed capacity of 1693 MW have been installed. At the end of the 9th Plan the total installed capacity of SHP projects upto 25 MW station capacity was 1438.89 MW. A capacity of 80.39 MW was added during 2002- 03. SHP projects with a total capacity of 84.04 MW were commissioned during the year 2003- 04, taking the total installed capacity to 1603 MW from 496 projects. In 2004- 05, 90 MW capacity from 18 projects was commissioned till December 2004.

Incentives

A package of incentives which includes fiscal concessions such as concessional custom duty, income tax exemption on projects for power generation for 10 years, etc. are available to small hydro power projects. The State Electricity Regulatory Commissions (SERC) in Andhra Pradesh, Himachal Pradesh, Karnataka, Maharashtra, Manipur and Punjab have announced preferential tariff.

New SHP projects both in the public and private sectors are eligible for subsidy. Subsidy is also provided for renovation and modernization of existing as well as languishing SHP projects, only in the public sector. In the case of private sector projects, subsidy is released after successful commissioning and commencement of commercial generation from the project, to the Financial Institution (FI) for offsetting it against the term loan provided to the developer.

State Wise Details of SHP Projects (upto 25 MW) Setup & Under Implementation (as on January 01, 2007)

For detailed information on the Indian Renewable Energy Sector, refer to the report - 'Overview of Power Sector in India 2008 edition'