India's Hydro Capacity Set to Surge, Exceeding 50% Growth by 2031-32

 

India is currently constructing 15 GW of hydroelectric power projects, with the capacity expected to increase from 42 GW to 67 GW by 2023-32. The Indian Meteorological Department predicts higher rainfall in the current financial year, which will increase snowmelt contribution in hydropower projects located in the Himalayan region. Pumped Storage Projects (PSPs), also known as 'the Water Battery', are crucial for providing greater inertia and balancing power to the grid. Currently, 2.7 GW of PSPs are under construction in the county, and another 50 GW is under various stages of development.

The fall in hydro power generation in 2023-24 is not solely due to less rainfall. The southern region, which contributes approximately 22% of the total hydro energy generated, has been severely impacted by natural disasters in 2023-24. In July 2023, Himachal Pradesh experienced flash floods, disrupting the operation of many power stations in the area. Flash floods in the Eastern region in October 2023 further hindered the operation of several hydro power stations, thus affecting the generation severely.

The government is reasonably optimistic about the future, with the prediction of a good monsoon in FY 2024-25 suggesting a potential reversal of the trend. This anticipated increase in rainfall could contribute to replenishment of reservoir capacities lost during the scarce rainfall in the previous year. The current downturn may be temporary rather than indicative of a long-term decline.

India is in the midst of an energy transition, marked by significant additions of solar and wind power to the current energy mix. Hydroelectric power has always played a significant role in the energy landscape of the country, providing essential peaking support to the electricity grid, thus enhancing the reliability and resilience of the power system.

India's renewable energy capacity has increased significantly in recent years, with the installed Renewable Energy (RE) capacity of the country standing at 150.54 GW as of 30.11.2021, and its nuclear energy-based installed capacity standing at 6.78 GW. This brings the total non-fossil-based installed energy capacity to 157.32 GW, which is 40.1% of the total installed electricity capacity of 392.01 GW at the time.

India is the only G20 country that has fulfilled all commitments made in Paris on climate change. Subsequently, India upgraded its commitments under Nationally Determined Contributions (NDCs) in Glasgow COP26 and communicated its updated NDCs to UNFCCC in August 2022.

All-India Renewable Energy Generation (excluding Large Hydro) has increased steadily from 61.7 billion units in 2014-15 to 225.5 billion units in 2023-24 at a Compound Annual Growth Rate (CAGR) of 15.47%. Additionally, the growth in Renewable Energy Installed Capacity (excluding Large Hydro) has increased from 38.96 GW as on 31.03.2015 to 136.57 GW as on 29.02.2024, at a Compound Annual Growth Rate (CAGR) of 14.94%.