Of all the non-conventional renewable energy sources, small hydro represents highest density resource and stands in the first place in generation of electricity from such sources world-wide. It is also the most cost-effective energy technology to be considered for rural electrification and under the climate change scenarios.
Of all the non-conventional renewable energy sources, small hydro represents highest density resource and stands in the first place in generation of electricity from such sources world-wide. It is also the most cost-effective energy technology to be considered for rural electrification and under the climate change scenarios. Observer Research Foundation (ORF) and Bridge to India jointly organised a roundtable on ’The Status and Prospects of Small Hydro Power in India’ in New Delhi on July 1, 2011. A formative discussion followed an introductory presentation on small hydro power in India by ORF. Mr. Praveen Saxena, Director at the Ministry for New and Renewable Energy, chaired the event. The discussion elaborated on the potential of small hydro power in India and the reasons for the gap between the estimated potential and the installed capacity.
Debates on the negative implications of the large hydro power projects in terms of environment and social impact has provided a thrust for the development of small hydro. In lieu of this argument, the roundtable discussion set forth the necessity to invest in the Small Hydro sector. The participants agreed that small hydro has the potential to meet the off-grid energy demand in the states with high hydrological assets. Although, only a fractional amount, small hydro may aid in filling the rural power deficit. It has been agreed that it is significant for off-grid, rural, remote area application in far flung isolated communities having no chances of grid extension for years to come. Small hydro is operationally flexible, suitable for peaking support to the local grid as well as for stand-alone applications in isolated remote areas. It serves to enhance economic development and living standards especially in remote areas with limited or no electricity at all, aiding in the economic development of the region.
Given the increased demand for renewable energy and the Renewable Purchase Obligations set by the states have created a demand pull effect on the development of small hydro in India. It has been able to successfully open an opportunity window for the independent power producers. Also, the present low capital barriers due to its small scale have attracted private sector to invest in the small hydro industry.
Having highlighted the prospected of small hydro, the challenges were evaluated and discussed. The regulatory bottleneck was rated as the highest constraint by the project developers and investors. In response, Dr. Saxena, Director Ministry of New and Renewable Energy, admitted the slow bureaucratic process of licensing and certification but also proposed the initiatives taken by the government to make the environment more conducive for private participation. He contested the idea of single window clearances for being any more effective.
Another sector of challenge was the unavailability of the hydrological data. In the absence of reliable and authentic hydro-geological data, the planning and operation of the small hydro projects becomes difficult and even dangerous at times of natural calamity or accidents. This not only increases the cost of the project but also adversely affects the operation of the plant.
On the administrative front, the technical and management skills of the locals were found to be insufficient for operation of the plant. However, intensive training to build managerial and operational staff was suggested to be imperative of the development.
Governance issues and the related social obstructions such as people claiming habitation in project areas for taking undue advantages, rehabilitation and relocation issues etc. were discussed at length.
Mr. Saxena appreciated the discussion and said that he will incorporate the input in his contribution to the Planning Commission for the draft of the Twelfth Five Year Plan. Also, the results of the discussion will be incorporated in the SMALL HYDRO POWER COMPASS, a half-yearly market analysis published by ORF and Bridge to India.
The discussion was chaired by Dr. Praveen Saxena, Director MNRE and was attended by representatives from NHPC, renewable energy experts, environmental lawyers, activists.
(This report is prepared by Sonali Mitra, Research Assistant, Observer Research Foundation)
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