Hydropower in India: Balancing Energy Needs and Environmental Impact
Introduction
Hydropower has long played a critical role in India’s energy landscape, contributing significantly to the country’s electricity supply. As one of the largest producers of hydropower globally, India’s rivers, which traverse diverse terrains and geographies, offer immense potential for both large and small-scale hydroelectric projects. However, the development of hydropower, especially large-scale projects, is not without challenges—environmental, social, and economic concerns must all be carefully balanced.
In recent years, there has been increasing interest in Pumped Storage Hydropower Projects (PHPs) as a solution to intermittency issues associated with renewable energy sources like solar and wind. These systems, which store excess energy by pumping water uphill to a reservoir during periods of low demand and releasing it to generate electricity during peak periods, have gained traction as part of India’s broader strategy to enhance energy security.
This article explores the current state of hydropower in India, including the performance of existing Pumped Storage Projects (PSPs), environmental and social challenges associated with large-scale hydro projects, the growing emphasis on PHPs, and the potential of small-scale hydropower in remote areas.
1. The Current State of Hydropower in India’s Energy Mix
India is the fifth-largest producer of hydropower in the world, with an installed capacity of approximately 46.85 GW as of 2024, contributing around 11.5% of the country’s total electricity generation capacity. This capacity includes large hydro projects, defined as those with a capacity above 25 MW, and small hydro projects (SHPs), typically those below 25 MW. Hydropower plays a crucial role in India’s renewable energy portfolio, alongside solar and wind energy, as the country works towards its ambitious goal of achieving 500 GW of renewable energy capacity by 2030.
Hydropower offers several advantages over other energy sources. Unlike solar and wind, it can generate power consistently, regardless of weather conditions, and its ability to provide base-load electricity makes it an essential part of grid stability. Additionally, hydropower plants have long lifespans, with many operating efficiently for over 50 years, and they offer flexibility in adjusting power generation to meet fluctuating demands, making them ideal for balancing intermittent renewable sources like solar and wind.
India’s major hydropower projects are concentrated in the northern and northeastern states, where rivers descending from the Himalayas provide the necessary flow and head for large-scale power generation. States like Himachal Pradesh, Uttarakhand, Arunachal Pradesh, and Jammu and Kashmir are home to many of India’s largest dams and hydroelectric plants, including the Tehri Dam, Nathpa Jhakri Dam, and Bhakra Nangal Dam.
Despite its existing capacity, India still has considerable untapped potential in hydropower. The Central Electricity Authority (CEA) estimates that the country has a total hydropower potential of around 148 GW, of which approximately 106 GW could be developed from large hydro projects, and around 42 GW could come from SHPs. However, the pace of hydropower development has slowed in recent years due to a combination of technical, financial, environmental, and social challenges.
2. Environmental and Social Challenges Related to Large Hydropower Projects
Large hydropower projects, while contributing significantly to India’s energy generation, are often controversial due to their environmental and social impacts. The construction of large dams and reservoirs involves significant land acquisition, often displacing communities and disrupting local ecosystems. These challenges, coupled with the risk of natural disasters in regions prone to earthquakes and landslides, have led to growing opposition to large-scale hydropower projects.
2.1 Displacement and Resettlement Issues
One of the most pressing social issues associated with large hydropower projects is the displacement of local communities. Large dams require vast tracts of land for reservoirs, submerging villages, agricultural land, and forests. This displacement has disproportionately affected marginalized communities, particularly indigenous populations who often rely on the land for their livelihoods and cultural practices.
For example, the construction of the Sardar Sarovar Dam on the Narmada River led to the displacement of tens of thousands of people, sparking a decades-long protest movement known as the Narmada Bachao Andolan (Save the Narmada Movement). While governments and developers are required to provide compensation and resettlement options, the quality and timeliness of these provisions have often been inadequate, leading to long-term social and economic hardships for displaced populations.
Moreover, resettlement programs often fail to consider the loss of cultural and spiritual connections to the land. Indigenous communities, such as the Adivasis in central India, have historically lived in close harmony with their natural surroundings. The forced displacement from these areas can lead to the erosion of traditional knowledge systems, community cohesion, and cultural identity.
2.2 Impact on Ecosystems and Biodiversity
Large hydropower projects also have significant environmental consequences, particularly for river ecosystems and biodiversity. The construction of dams alters the natural flow of rivers, disrupting sediment transport and reducing the availability of nutrients downstream. This can have devastating effects on aquatic ecosystems, including the habitats of fish and other species that depend on free-flowing rivers for their survival.
The damming of rivers also affects terrestrial ecosystems. Forests and wildlife habitats are often submerged by reservoirs, leading to the loss of biodiversity. In the Himalayas, where many of India’s large hydro projects are located, the fragile ecosystem is particularly vulnerable to such disruptions. The construction of dams in these regions can exacerbate the risk of landslides and soil erosion, further degrading the environment.
One of the most critical environmental concerns associated with large hydropower projects is the impact on migratory fish species. Many of India’s rivers are home to species like the Mahseer, which rely on long migratory routes to spawn. Dams act as barriers to these migrations, leading to population declines and, in some cases, local extinctions. Fish ladders and bypass channels have been implemented in some projects to mitigate these effects, but their effectiveness remains limited.
2.3 Climate Change and the Risk of Natural Disasters
The increasing frequency of extreme weather events due to climate change poses additional challenges for large hydropower projects. The Himalayan region, where many of India’s large dams are located, is particularly vulnerable to the effects of climate change, including glacial retreat, changes in river flow patterns, and increased risks of floods and landslides.
In 2013, the Uttarakhand floods, triggered by heavy rainfall and glacial melting, caused widespread devastation, including the destruction of several hydropower projects. The disaster highlighted the risks of building large dams in ecologically sensitive and geologically unstable regions. Climate change is expected to further intensify these risks, making the long-term sustainability of large hydropower projects more uncertain.
2.4 Water Security and Transboundary Issues
The construction of large dams can also create conflicts over water resources, both within India and with neighbouring countries. Many of India’s rivers, including the Brahmaputra, Ganges, and Indus, flow through multiple countries, making water management a sensitive geopolitical issue. The damming of these rivers for hydropower can lead to tensions over water sharing, particularly during periods of drought or reduced river flow.
In recent years, China’s plans to build large dams on the upper reaches of the Brahmaputra River (known as the Yarlung Tsangpo in Tibet) have raised concerns in India, where the river plays a critical role in supporting agriculture and hydropower in the northeastern states. Transboundary water issues are likely to become more contentious in the future as climate change alters river flows and increases competition for water resources.
3. The Potential of Small-Scale Hydropower in Remote Areas
While large hydropower projects face significant challenges, small-scale hydropower (SHP) offers a more environmentally friendly and socially acceptable alternative, particularly for meeting the energy needs of remote and underserved areas. SHPs are defined as hydropower projects with capacities below 25 MW, and they are often considered more sustainable due to their lower environmental impact and reduced need for land acquisition.
India’s SHP sector has grown steadily over the years, with an installed capacity of approximately 4.7 GW as of 2024. The Ministry of New and Renewable Energy (MNRE) has identified over 7,500 potential sites for SHPs across the country, with a total estimated capacity of 21 GW. These projects are typically run-of-river, meaning they generate electricity from the natural flow of rivers without the need for large dams or reservoirs, minimizing environmental disruption.
3.1 Benefits of Small-Scale Hydropower
Small-scale hydropower offers several advantages, particularly in the context of India’s rural electrification and development goals. One of the key benefits is the ability to provide reliable electricity to remote areas that are not connected to the national grid. Many of India’s rural communities, especially in hilly and tribal regions, continue to suffer from energy poverty, relying on traditional biomass or diesel generators for power. SHPs can provide a clean and reliable source of electricity, improving access to modern energy services and supporting economic development in these areas.
Additionally, SHPs have a lower environmental footprint compared to large hydro projects. Since they do not require large reservoirs, they avoid the issues of land acquisition and displacement. They also have a reduced impact on river ecosystems, as they typically divert only a portion of the river flow for power generation, allowing the rest to continue downstream.
In terms of social impact, SHPs can create local employment opportunities and support the development of small industries. In some cases, SHPs have been developed as community-led projects, with local ownership and management, ensuring that the benefits of the project are shared with the surrounding community.
3.2 Challenges and Opportunities in Scaling Up Small-Scale Hydropower
Despite their potential, the development of SHPs in India faces several challenges. One of the main barriers is the lack of adequate financing and policy support. While large hydropower projects often receive government backing and financial incentives, SHPs have struggled to attract investment due to their smaller scale and lower profitability. The high upfront costs of SHPs, particularly in remote areas with difficult terrain, also pose a challenge for developers.
Another challenge is the lack of standardized regulations and guidelines for SHP development. The permitting process for small hydro projects can be cumbersome, with developers facing delays in obtaining environmental and water use clearances. Streamlining the regulatory framework and providing incentives for SHP development could help accelerate the growth of the sector.
Despite these challenges, there are significant opportunities for expanding small-scale hydropower in India. The government’s focus on rural electrification and its push for renewable energy development create a favourable policy environment for SHPs. In addition, advances in hydropower technology, including improved turbines and control systems, are making small hydro projects more efficient and cost-effective.
4. Pumped Hydro Projects (PHPs) in India: Current Status and Performance
4.1 Current Operational Pumped Hydro Projects in India
Pumped Storage Hydropower Projects (PHPs) are a key part of India’s energy storage strategy. These systems store excess electricity by pumping water from a lower reservoir to an upper reservoir during periods of low electricity demand. During peak demand, the stored water is released back down to the lower reservoir through turbines to generate electricity. This technology plays an essential role in grid stability, allowing for the storage of excess energy generated by intermittent sources such as solar and wind.
As of 2024, India has eight operational pumped storage projects with a combined installed capacity of about 4.8 GW. Some of the most notable operational PHPs include:
- Srisailam Dam PSP (Telangana): Installed capacity of 900 MW.
- Kadana Dam PSP (Gujarat): Installed capacity of 240 MW.
- Purulia PSP (West Bengal): Installed capacity of 900 MW.
- Bhira PSP (Maharashtra): Installed capacity of 1,500 MW.
The performance of these projects has been relatively successful in terms of grid management and providing peaking power. PHPs have also demonstrated their ability to store energy during off-peak periods and quickly ramp up power generation during high-demand hours. This ability makes them indispensable in a grid system that is increasingly relying on renewable energy sources.
4.2 Upcoming Pumped Hydro Projects in India
Given the performance and strategic importance of PHPs, there is growing emphasis on developing new projects. In the coming decade, India plans to significantly increase its pumped storage capacity to address the intermittency of renewable energy sources. Several PHPs are currently under construction or in advanced planning stages. Some of the major upcoming projects include:
- Turga PSP (West Bengal): Planned capacity of 1,000 MW.
- Sholayar PSP (Tamil Nadu): Planned capacity of 1,500 MW.
- Koyna PSP (Stage V) (Maharashtra): Planned capacity of 1,000 MW.
- Upper Indravati PSP (Odisha): Planned capacity of 600 MW.
According to the Ministry of Power and the CEA, around 40 GW of pumped storage capacity is expected to be added by 2035. This expansion is aimed at enhancing the flexibility and reliability of India’s grid, especially as the country increases its share of renewable energy.
4.3. The Challenge of Surplus Energy Availability for PHPs in India
One of the most critical challenges for expanding Pumped Storage Hydropower Projects (PHPs) in India is the availability of surplus energy to pump water during periods of low demand. In developed countries, PHP schemes are highly effective because they can rely on surplus electricity generated from a well-established power grid that often exceeds the immediate demand for electricity. However, this is not the case in India, where power shortages are a recurring issue, and demand often outstrips supply.
4.3.1 India’s Current Energy Shortfall and Impact on PHPs
India faces frequent power cuts, especially during peak periods, due to a mismatch between generation capacity and demand. The power sector has been working to close this gap, but the country remains energy-deficient, particularly in states with large populations or rapidly industrializing regions. As of 2024, the total installed power generation capacity stands at around 420 GW, but regular outages and grid instability persist due to infrastructure constraints and regional disparities in generation and distribution.
This energy shortfall poses a significant problem for PHPs. In order for pumped storage systems to work effectively, there must be excess energy available during off-peak times that can be used to pump water to the upper reservoir. Given the current state of India’s energy grid, the availability of this surplus energy is limited, which in turn reduces the effectiveness of PHPs in managing peak loads. For instance, many of India’s PHPs operate below capacity because there simply isn’t enough surplus energy to run the pumping process during off-peak hours.
4.3.2 How Much Extra Generation is Achieved Using Pumped Storage in India?
At present, the additional generation capacity provided by PHPs is constrained by India’s overall energy deficit. The actual amount of electricity generated by PHPs remains far below their installed capacity due to the lack of surplus power to pump water. For example, while India’s operational PHPs have an installed capacity of 4.8 GW, their actual contribution to the grid is often lower because pumping operations are curtailed during periods of high grid demand.
The effectiveness of PHPs in India depends heavily on the availability of surplus renewable energy. As solar and wind power continue to expand, particularly during periods of peak generation (e.g., sunny afternoons or windy nights), there may be opportunities to capture this excess energy for use in PHPs. However, the current state of the grid limits this potential, as renewable energy generation is often curtailed due to grid constraints or is not fully utilized due to a lack of storage capacity.
4.3.3 When Will India Have Surplus Power to Support PHPs?
The availability of surplus energy for PHPs will likely increase as India continues to expand its renewable energy capacity. India has set ambitious targets to install 500 GW of renewable energy capacity by 2030, with significant investments in solar, wind, and hydropower. As more renewable energy projects come online and grid infrastructure is strengthened, there will be greater opportunities to generate surplus energy during off-peak periods.
However, achieving this surplus will take time. India’s power sector is still working to close the gap between demand and supply, and it may take several years before the country has enough surplus capacity to fully support the operation of PHPs. By 2030, as renewable energy generation scales up, there is a strong possibility that surplus energy will be available to run pumped storage systems more efficiently. This timeline aligns with the expected completion of several new PHPs currently under development.
4.4 Will These Projects Justify the Investment?
4.4.1 Economic Justification for PHPs in India
Investing in Pumped Storage Hydropower Projects in India is a long-term strategy that can deliver significant benefits, particularly as the country moves toward a more renewable energy-focused grid. PHPs provide a reliable solution for energy storage, allowing the grid to balance intermittent renewable energy sources such as solar and wind. In the long run, PHPs can reduce the need for fossil fuel-based peaking power plants, helping India meet its climate goals.
From a cost perspective, PHPs offer a relatively low-cost solution for large-scale energy storage compared to alternatives like lithium-ion batteries. Once built, the operational and maintenance costs of PHPs are minimal, and these systems can operate efficiently for over 50 years. However, the initial investment required to build PHPs is substantial, particularly in regions where land acquisition and environmental concerns pose significant challenges.
Given India’s current energy shortfall, PHPs may not be able to operate at full capacity in the near term due to the lack of surplus power. However, as renewable energy generation increases and grid infrastructure improves, the long-term economic benefits of PHPs will likely outweigh the initial costs. By 2030, when India’s renewable energy capacity is expected to be much higher, PHPs will play a crucial role in ensuring grid stability and reducing reliance on fossil fuels.
4.4.2 Environmental and Social Considerations
While PHPs are generally considered more environmentally friendly than large-scale dams, they still involve land acquisition, displacement, and potential ecological disruption. Ensuring that these projects are developed with proper environmental safeguards is essential for mitigating their impact on local communities and ecosystems. Compared to large dams, however, PHPs typically have a smaller environmental footprint, as they often rely on existing reservoirs and infrastructure.
4.4.3 Will These Projects Justify the Investment in India?
Investing in Pumped Storage Hydropower Projects (PHPs) in India presents both opportunities and challenges. The key question is whether these projects will justify the significant investment required, both in terms of financial capital and environmental impact.
In the long term, the benefits of PHPs are likely to justify the investment, particularly in the context of India’s renewable energy transition. As solar and wind energy continue to grow, the need for reliable energy storage solutions will become increasingly important. PHPs offer a mature, proven technology for storing energy at a large scale, making them an attractive option for India’s grid operators.
Additionally, PHPs can help reduce India’s reliance on fossil fuel-based power plants for meeting peak demand, thereby lowering greenhouse gas emissions and supporting India’s climate goals. By improving grid stability and reducing the need for backup thermal generation, PHPs also contribute to energy security and reduce the risk of blackouts.
Conclusion: Balancing Energy Needs and Environmental Impact
Hydropower, particularly Pumped Storage Hydropower Projects (PHPs), remains a critical component of India’s energy strategy as the country transitions to a renewable energy future. While PHPs offer numerous advantages in terms of energy storage and grid stability, their success in India will depend heavily on the availability of surplus power, particularly from renewable energy sources like solar and wind. Currently, India faces significant challenges in meeting its existing power demand, resulting in frequent power shortages and limiting the availability of surplus energy to drive PHP operations.
However, as India expands its renewable energy capacity—targeting 500 GW by 2030—the situation is expected to improve. Once the grid infrastructure is upgraded and surplus renewable energy becomes more abundant, PHPs will be able to operate more effectively, providing a reliable solution for energy storage and helping India transition to a low-carbon economy. The investment in PHPs will likely be justified over the long term as India’s renewable energy capacity increases, reducing the need for fossil fuel-based power and supporting the country’s climate goals.
While PHPs represent a promising solution for the future, the development of large-scale hydropower projects must carefully balance environmental and social considerations. The displacement of communities and the ecological impact of large dams have sparked significant opposition in the past, and these issues must be addressed through comprehensive resettlement policies, environmental safeguards, and community engagement.
Small-scale hydropower (SHP) projects, with their lower environmental impact and ability to serve remote areas, provide an attractive alternative for meeting rural energy needs. These projects can play a vital role in India’s overall energy strategy, contributing to rural development and reducing energy poverty in underserved regions.
Final Thoughts
Hydropower, in its various forms—large dams, PHPs, and SHPs—has the potential to be a cornerstone of India’s energy future. As the country continues to balance its growing energy needs with environmental sustainability, PHPs will become increasingly important for managing the integration of intermittent renewable energy sources into the grid.
However, the success of these projects will depend on several factors, including the availability of surplus energy, investment in grid infrastructure, and the careful management of social and environmental impacts. By addressing these challenges and continuing to invest in hydropower technology, India can harness its vast hydropower potential to build a more sustainable, reliable, and equitable energy system for the future.
References
- Central Electricity Authority (CEA) Reports on Hydropower and Renewable Energy
- The CEA regularly publishes reports on India’s power sector, including data on hydropower capacity, pumped storage projects, and future targets. These reports provide detailed insights into the performance and potential of hydropower in India.
Access: CEA Official Website - Ministry of Power, Government of India
- The Ministry of Power is responsible for formulating policies related to electricity generation, transmission, and distribution in India. Their website contains information on government initiatives, new hydropower projects, and plans for renewable energy integration.
Access: Ministry of Power
- The Ministry of Power is responsible for formulating policies related to electricity generation, transmission, and distribution in India. Their website contains information on government initiatives, new hydropower projects, and plans for renewable energy integration.
- International Hydropower Association (IHA)
- The IHA provides global data and analysis on hydropower development, including the status of hydropower in India. It also covers best practices for managing environmental and social impacts.
Access: International Hydropower Association
- The IHA provides global data and analysis on hydropower development, including the status of hydropower in India. It also covers best practices for managing environmental and social impacts.
- NITI Aayog Reports on India’s Energy Future
- NITI Aayog, the policy think tank of the Government of India, has published reports on India’s energy policy and the role of renewable energy in meeting the country’s future energy demands. These reports cover the integration of hydropower and other renewables into India’s energy mix.
Access: NITI Aayog
- NITI Aayog, the policy think tank of the Government of India, has published reports on India’s energy policy and the role of renewable energy in meeting the country’s future energy demands. These reports cover the integration of hydropower and other renewables into India’s energy mix.
- India’s National Electricity Plan (NEP)
- The NEP provides detailed projections for India’s electricity generation, including the expansion of renewable energy capacity, the development of pumped storage projects, and the expected demand and supply of electricity.
Access: National Electricity Plan
- The NEP provides detailed projections for India’s electricity generation, including the expansion of renewable energy capacity, the development of pumped storage projects, and the expected demand and supply of electricity.
- International Energy Agency (IEA) Reports on India’s Energy Sector
- The IEA provides global energy outlooks, including specific reports on India’s energy transition, renewable energy growth, and hydropower development. It includes data on India’s energy shortfall and the challenges in integrating renewable energy into the grid.
Access: International Energy Agency
- The IEA provides global energy outlooks, including specific reports on India’s energy transition, renewable energy growth, and hydropower development. It includes data on India’s energy shortfall and the challenges in integrating renewable energy into the grid.
- World Bank Reports on Hydropower Projects in India
- The World Bank has supported several hydropower projects in India and provides detailed case studies on the environmental and social impacts of these projects.
Access: World Bank Hydropower
- The World Bank has supported several hydropower projects in India and provides detailed case studies on the environmental and social impacts of these projects.
- Press Information Bureau (PIB) Releases on Renewable Energy and Hydropower
- The PIB regularly releases updates on government initiatives and projects related to renewable energy and hydropower development in India. These releases offer the latest information on policy changes and project developments.
Access: Press Information Bureau
- The PIB regularly releases updates on government initiatives and projects related to renewable energy and hydropower development in India. These releases offer the latest information on policy changes and project developments.
These sources provide robust, government-backed, and internationally recognized information on the state of hydropower and energy development in India. You can refer to these materials for a deeper understanding of the issues, policies, and projects discussed in the article.