The addition of hydropower to renewable mix must for building a sustainable energy future

The government’s move to place all hydro projects (including large ones) in the renewable energy category has been a major shift, offering more scope for private sector participation and investment.

India is steadily moving towards renewable energy, and hydropower is becoming a key aspect of this shift. Despite having plenty of hydropower potential, most of it remains unused. With focused policies and strong investments, the country is working to unlock this huge potential. The successful addition of hydropower to the renewable mix will be a must for building a stable and sustainable energy future.

Key measures being taken up by the Indian government to make hydropower plants a major part of the renewable energy sector are:

Increasing hydroelectric power production

India is actively working towards increasing its hydroelectric capacity and production at existing and upcoming hydroelectric plants. A notable step has been to include the Hydro Purchase Obligation (HPO) as part of the overall Renewable Purchase Obligation (RPO). This recognises hydroelectric power as a primary renewable energy source, spurring additional investment and development.

For such projects to become economically viable, inter-state transmission charges have been exempted on hydroelectric power stations and pump storage schemes (PSPs). Budgetary support has also been introduced to help in flood control and infrastructure like roads and bridges to facilitate project implementation. Faster clearances of Detailed Project Reports (DPR) by the Central Electricity Authority (CEA) have also shortened project timelines.

Strengthening renewable energy with pumped storage

Pumped Storage Hydropower (PSH) balances the country’s renewable energy supply. PSH plants store energy during off-peak demand hours and release it as demand picks up to even out the peaks and valleys of wind and solar power. Pumped storage facilities provide the flexibility needed to balance renewable energy output. Policy changes and accelerated clearances in recent years have driven such project development to make renewable energy more predictably available.

Encouraging private sector engagement through policy reforms

Increasing private investment is a key part of India’s hydropower strategy. The power ministry’s move to place all hydro projects (including large ones) in the renewable energy category has been a major shift. This change offers more scope for private sector participation and investment.

The separation of HPOs from non-solar RPOs has also led to a more transparent hydropower market, which is more visible to investors. Tariff revisions and selective budgetary support to flood control and infrastructure schemes have also improved the financial prospects of hydroelectric development.

Increasing efficiency with digitalisation and IoT

Digitalisation and Internet of Things (IoT) technologies are making hydropower production more efficient and reliable. Predictive maintenance, real-time monitoring, and automation lower downtime and increase output, making hydroelectric power stations more efficient.

Hydropower will play a significant role in India’s shift to renewable energy and will be a key component of hybrid renewable energy parks. It can provide essential backup through PSH in case of a decline in solar and wind output, ensuring a stable power supply. Strong policy support, private investments, government initiatives, and new technology will help create a balanced and sustainable energy future for India.

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Authored by:

Udit Garg, Managing Director & CEO- Kundan Green Energy