The situation in India is pivotal in the context of the country’s energy transition. With the second-largest economy in the world growing at the fastest pace, our need for efficient and less expensive energy solutions has continued to escalate with every passing year. Though the spotlight rightly fell on the benefits of solar and wind resources in the previous year, an important, perhaps less-discussed, resource can be found in water, or ‘hydropower.’
It has been estimated that India has more than 145 GW of hydropower potential, which is spread across the Himalayan rivers, peninsular basins, and smaller watercourses. However, only one-third of this potential has been tapped.The reasons for this vast potential not being fully harnessed could be policy paralysis, long gestation periods, and a lack of investment in this sector in the past. Now, when energy security and climate change mitigation have become critical priorities, tapping this hydropower potential is no longer an option but a necessity.
Why Hydropower Is More Important Than Ever
One of the greatest advantages of hydropower is that it is always available and dispatchable. This characteristic will play a significant role, especially during the rapid increase in intermittent renewable energy. Pumped storage hydropower can function as a “natural battery” and provide electricity during peak hours. The goal of reaching 500 GW of non-fossil fuel power by 2030 will make hydropower the backbone for ensuring grid stability.
Besides the production of electricity, hydropower projects provide multiple benefits, such as flood control, irrigation, drinking water supply, and regional development. In remote and hilly areas, hydropower projects have played the role of catalysts for infrastructure creation, employment generation, and socio-economic growth.
The Emergence of Smaller and Responsible Hydro Projects
Though large hydro plants feature prominently, the need to give equal importance to small to medium-sized hydropower plants cannot be overstated. With relatively low environmental impact, such projects can be constructed faster, with better integration with the surrounding environment. They can seamlessly integrate with the sustainability objectives of India. Our experience at Kundan Green Energy has only strengthened the fact that the development of hydropower must adopt an eco-friendly and grassroots approach. Advancements in technology and more sophisticated tools for the assessment of impacts have enabled the construction of hydropower projects that are not harmful to the ecosystem.
Policy Support and the Road Ahead
It is encouraging to see that recent policy changes, like recognizing large hydropower power as renewable energy, adjusting tariffs, and allocating a budget for flood control, have revitalized the sector. The key to faster growth, however, lies in easier approvals and increased participation by the private sector.
Funding is another critical area. Hydropower projects need patient funding because they tend to have long gestation periods. New funding models, green bonds, and blended finance can be a game-changer in attracting patient funding.
Strategic Resource for Energy Security in India
As climate change is associated with an increase in extreme weather events, the energy sector should be resilient. Hydropower is characterized by the ability to react well to fluctuations in demand, and this makes it an asset in ensuring energy security and reliability. Moreover, as a domestically sourced energy resource, hydropower strengthens India’s economic and geopolitical resilience.
Conclusion
This energy resource does not belong to the past but represents the future because it helps India meet its targets of becoming an entirely renewable resource-driven country in the coming decade.
The way forward to a greener and more resilient future for the energy sector is not between one form of renewable energy and another, but to ensure that there is a well-integrated energy mix in place. Hydropower, with its distinct advantages, has to be central to this strategy.
