World Small HydropoWer development report 2013

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INDIA

Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP).

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This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners.

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Recommended citation: Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report 2013. United Nations Industrial Development Organization; International Center on Small Hydro Power. Available from www.smallhydroworld.org.

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3 Asia 3.3 South Asia 3.3.4 India Arun Kumar, Indian Institute of Technology Roorkee , India Key facts

Population 1,205,073,6121

Area 3,287,263 km2.1

Climate Varies from tropical monsoon in south to temperate in north

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Topography Upland plain (Deccan Plateau) in south, flat to rolling plain along the Ganges, deserts in west, Himalayas in north (highest point: Kanchenjunga 8,598 m)

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Rain pattern

Average annual rainfall: 1,074 mm. Monsoon season: June to September

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Electricity sector overview Electricity is a concurrent subject in India, meaning that the Central (Federal) Government and the State Governments have responsibility to promote this sector and authority to make necessary laws and regulations and to formulate and implement policies and programmes. Indian States function under the guidance of the Central Government. The total installed capacity of the country is 211,766 MW as on 31 January 2013. The break-up of the total installed capacity from different energy sources is shown in figure 1 (renewables include small hydropower, biomass, urban and industrial waste-to-energy and wind energy). The power generation infrastructure is owned by the Indian Government as well as by the private sector.

Figure 1 Electricity generation in India Source: Ministry of Power

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Small hydropower sector overview and potential The classification of small hydropower in India can be seen in table 1 below.

Table 1 Classification of small hydropower in India (Kilowatts) Type Station capacity

Pico/watermill Up to 5 Micro Up to 100 Mini 101 - 2000 Small 2001 - 25000

The state-wise details on installed small hydropower capacity in India are provided in table 2. As of end of 2012, the aggregated small hydropower capacity in India was 3,496 MW. In India the potential of small hydropower projects (less than 25 MW) is estimated at about 20,000 MW (these estimates are under upward revision). As of December 2012, 6,474 small scale sites with 19,749 MW aggregated small hydropower potential have been identified in the country, out of which 4,143 sites (of 15,151 MW capacity or 76.7 per cent of the total small hydropower potential) are located on small streams (run-of-river), 379 sites (of 1,645 MW capacity, 8.3 per cent of the total small hydropower potential) are located on the toe of existing irrigation dams, and 1,952 sites (of 2,953 MW capacity, 15 per cent of the total small hydropower potential) are located on existing canals, falls and barrages. Efforts are underway for potential assessment on facilities like, pipelines for drinking water and industrial use, effluent outfall at water treatment plants and sewage treatment plants, outlets of small dams and hydro kinetics in flowing channels/streams. In the deregulated environment small scale pumped storage plants are being contemplated in the future.

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Figure 2 Small hydropower capacities in India The Indian Ministry of New and Renewable Energy (MNRE) that is in charge of small scale hydro up to 25 MW, is contemplating a small hydropower assessment programme in its 12

th plan period (2012–2017). The

57%

19%

12%

9%

2%

1%

0% 10% 20% 30% 40% 50% 60%

Coal

Hydro

Renewables

Gas

Nuclear

Oil

20000 MW

3496 MW

15000 MW

3198 MW

0 5000 10000 15000 20000

SHP potential (up

to 25 MW)

SHP installed

capacity (up to

25 MW)

SHP potential (up

to 10 MW)

SHP installed

capacity (up to

10 MW)

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target is that out of the total grid interactive power generation capacity that is being installed, two per cent should come from small hydropower. Today, the small hydropower programme is essentially driven by private investment. The focus of the programme is to

lower the cost of equipment, to increase its reliability and to set up projects in areas which give the maximum advantage in terms of capacity utilization.

Table 2 Small hydropower in India Projects installed Projects under implementation

State Number Capacity (MW)

Number Capacity (MW)

Andhra Pradesh 66 217.830 15 35.25

Arunachal Pradesh 143 101.510 65 30.97

Assam 5 31.110 4 15.00

Bihar 29 70.700 5 17.70

Chhattisgarh 8 27.250 5 140.00

Goa 1 0.050 - -

Gujarat 5 15.600 - -

Haryana 7 70.100 2 3.35

Himachal Pradesh 142 536.905 47 182.45

J&K 35 130.530 9 34.65

Jharkhand 6 4.050 8 34.85

Karnataka 132 915.395 41 322.03

Kerala 25 158.420 11 52.75

Madhya Pradesh 11 86.160 3 4.90

Maharashtra 47 295.525 20 80.60

Manipur 8 5.450 3 2.75

Meghalaya 4 31.030 3 1.70

Mizoram 18 36.470 1 0.50

Nagaland 10 28.670 4 4.20

Orissa 9 64.300 4 3.60

Punjab 46 154.500 12 21.15

Rajasthan 10 23.850 - -

Sikkim 17 52.110 1 0.20

Tamil Nadu 21 123.050 - -

Tripura 3 16.010 - -

Uttar Pradesh 9 25.100 - -

Uttarakhand 98 170.820 47 178.04

West Bengal 23 98.400 17 84.25

A&N Islands 1 5.250 - -

Total 939 3 496.145 327 1 250.89

Note: Data as of December 2012.

Figure 3 Small hydropower capacity addition in India

India has developed small hydropower on its existing irrigation dams and irrigation canal falls. From 1997 to 2008, about 500 MW have been developed on these existing facilities and are the first choice for development by IPPs.

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Year-wise capacity addition from small hydropower projects is shown in figure 3. A target of adding about 2,100 MW during the 12

th Plan (2012 to

2017) has been fixed. To make small hydropower cost effective and reliable, 31 supporting documents (standards, guidelines and manuals) covering the entire range of small hydropower activities have been developed by the Indian Institute of Technology (IIT) Roorkee, through a consultative process and are available for the use of developers, manufactures, consultants, regulators and others.

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Legislation on small hydropower In August 1998 and thereafter in November 2008, the Government of India announced a Policy on Hydro Power Development. People adversely affected by hydropower have been made long term beneficiary stakeholders in the hydropower projects by way of one per cent of free power on recurring basis with a matching one per cent support from State government for local area development, as well as annual cash benefits, ensuring a regular stream of benefits. To enable the project developer in the hydropower sector achieve a reasonable and quick return on investment, merchant sale of up to a maximum of 40 per cent of the saleable energy has been allowed. The Government of India provides subsidy for development of small hydropower both for government, society and private sector in different proportions depending on the location, degree of difficulty and installed capacity. Water is a state government subject in India, and hence hydropower development is the responsibility of state governments. Central government advises on the hydropower matters and plays the role of an overall river basin planner and arbitrator. The MNRE has issued guidelines to the State Governments for developing policies for renewable energy development, and especially for small hydropower. The Indian Electricity Act 2003 has special provisions for encouragement of the development of renewable energy and rural electrification. The main features of the small hydropower policies of the State government are summarized below:

24 States namely Arunachal Pradesh, Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir,

Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Mizoram, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand, Uttar Pradesh and West Bengal have announced policies for setting up commercial small hydropower projects through private sector participation. The facilities available in the States include wheeling of power produced, banking, buy-back of power and facility for third party sale.

Over 6,500 MW capacity small hydropower sites have been allotted to private sector for their development.

Power banking (a concept of utilising the electricity from the grid by the independent Power Producer for its use from one season rainy period) to other seasons i.e. dry period) is permitted by many for a period of one year but in some cases only for six to eight months.

Buy back of small hydropower is generally based on the guidelines issued by the Central Electricity Regulatory Commission (CERC), with variations given by the State Electricity Regulatory Commissions (SERCs) of many states.

Some states provide other concessions such as lease of land, exemption from electricity duty and entry tax on power generation equipment.

Some States do not levy any water charges while some levy it as a percentage of electricity tariffs.

Some States have prescribed the minimum quantum of power produced from renewable sources, renewable purchase obligation to be purchased by State Distribution Licensee varying from 1 to 10 per cent in incremental manners.

Barriers to small hydropower development There are several barriers for small hydropower development in India that vary from state to state, depending on the preparation for data, site, feasibility reports and clearance. These barriers may be summarized as follows:

Lack of availability of discharge data.

Lack of availability of qualitative geological and sedimentation data.

Lack of availability of manpower for small hydropower plants planning and design.

Long time in getting project clearances, in obtaining permissions or licences.

Lack of involvement of local people.

Lack of awareness and legal tools with state government to regulate minimum flows in the streams.

References 1. Central Intelligence Agency (2012). The World Factbook. Available from www.cia.gov/library/publications/the-world-factbook/.

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2. World Bank Data (n.d.). Data: India: South Asia. Available from

http://data.worldbank.org/country/india. 3. Ministry of Power (2013). Government of India,

Website. Available from www.cea.nic.in. 4. Kumar, A. (2012). SHP Development in India. National Seminar on Implementation of Hydro Projects through Private Participation, 10 January 2012. Pune. 5. Kumar, A., et al (2011). Hydropower. The Intergovernmental Panel on Climate Change Special

Report on Renewable Energy Sources and Climate Change Mitigation. Prepared by Working Group III of the Intergovernmental Panel on Climate Change, Edenhofer, O. and others, Eds. UK: Cambridge University Press and USA: New York, p. 1075. Available from http://srren.ipcc-wg3.de/report. 6. Government of India, Ministry of New and Renewable Energy (2012-2013). Annual Report 2012-2013. Delhi.

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