The slow growth and financing gaps shall have cascading effect on pace of fresh installations in both the large and small hydro plants amidst the Covid-19 crisis
India is endowed with hydro potential of 150 GW looked to gain the fillip to address the peaking power. However, during the last decade, the hydro (LHP) & small hydro (SHP) segment of India having to deal with regressive capacity addition owing to faulty clearance nod and financial gaps. Moreover, nearly 100 GW of total hydro electricity potential in India’s rivers lying untapped because of high tariffs. As a result, in 2019 the government approved a slew of measures including providing renewable energy status for large hydel projects and new funding provisions to boost hydro power generation in India. However, amidst the Covid-19 outbreak, the sector shall see reduction in pace of fresh additions in both large and small hydro. However, amidst force majeure circumstances witnessed, the hydro sector likely to see reduction in fresh investment and with uncertainty in future the situation for capacities look grim. Also, with the country witnessing a decline during the lockdown period in the demand, generation from small hydro shall be reduced. Hence with reduced demand, the cash flows shall also be reduced leading to the losses till the normalcy returns.
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Key Highlights
NHPC awarded the work for “Execution of 1500 metre Head Race Tunnel works for Parbati-II HE Project (Lot PB-2C) to M/s Gammon Engineers and Contractors Pvt. Ltd. for a Contract Price of INR 211.63 Crore.
NHPC has signed a Memorandum of Understanding (MOU) with Powergrid Corporation of India for Turnkey Execution of Dedicated Transmission lines / Construction Power Supply lines for future NHPC hydropower projects in India.
NHPC signs MOU for exploring possibilities for cement requirement for 2880 MW Dibang Multipurpose Project
Report Insights
The MNRE has taken a series of steps to promote the development of SHP in a planned manner and improve the reliability & quality of the projects.
By giving various physical and financial incentives, investments have been attracted in commercial SHP projects, apart from subsidizing state governments to set up small hydro projects.
MNRE is giving special emphasis to promote the use of efficient designs of water mills for mechanical as well as electricity generation and the setting up of micro hydel projects for remote village electrification.
Must Buy For
Central Power Generation Companies
Hydro Power Generation Corporations
Independent Power Producers
State Electricity Boards
State Generation Companies
Renewable Power Developers
Renewable Developing Agencies
Government Agencies
Research firms/ Institutes
Project Consultants
Industry Associations / Technical Consulting Group
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