1. Development of Hydro Power Projects Issues and Possible Solutions
Janardan Choudhary
Director (Technical), NHPC Limited

2. HYDRO POWER DEVELOPMENT - Major Issues affecting growth….
1. Environmental issues
Environment clearance
Forest and wildlife clearance
Rehabilitation and resettlement
Public Hearing for EC and also for FRA
EC and FC challenges in NGT
Downstream Concerns
E- flows
Dam break apprehensions
Flood threat perceptions
2. Infrastructural & Administrative issues
Remote sites having lack of accessibility and infrastructure
Land acquisition delays
Law and order issues
Demand for employment

3. HYDRO POWER DEVELOPMENT - Major Issues affecting growth….
3. Financial issues
High capital cost
Long gestation period
Additional costs of water cess
Green energy cess
Lack of long term loans at low interest rate
Upfront charges
4. Technical issues
Natural calamities
Dearth of competent contractors
Shortage of trained manpower
Geological uncertainties

4. Lack of growth….
Much of the identified capacity has remained untapped. Of about 148,700 MW potential in the country, only 45,487 MW i.e. 26% has been harnessed so far.
6400 MW capacity is stranded due to time/cost overruns, financial problems, NGT cases etc.
26,400 MW DPRs have been cleared by CEA but yet to be taken up for want of EC and FC.
In NHPC DPRs of around 4995 MW capacity projects have been cleared long back by CEA, but could not take-off due to non-availability of either EC, FC, FRA or judicial intervention. [Kotlibhel-1A, 195 MW, Oct/2006; Teesta IV-520 MW, May/2010; Tawang-I, 600 MW, Oct/2011; Tawang-II, 800 MW, Sept/2011; Dibang, 2880 MW, Sept/2017).

5. HYDRO POWER - benefits
Planned RE integration of 175 GW by entailing high intermittency and variability of Wind and Solar would require
Balancing power of around 60 GW.
Fast ramping: Ramping up 290 MW/min (evening) and ramping down 210MW/min (morning).
Sufficient spinning reserves
Hydro power plants including pumped storage schemes can be leveraged to play very significant role in providing:
Grid balancing power
Improve grid reliability, stability and safety.
Reduce RE curtailment (due to fast ramping down capability)
Hydro projects lead to development of infrastructure in remote areas and building a lot of social infrastructure like – employment generation, healthcare benefits, improved education facilities etc.
Other benefits like flood moderation, water security, tourism, fish production

6. HYDRO POWER DEVELOPMENT - Possible solutions ….
Possible solutions in putting back hydro development on track :
Water being state subject, states should play proactive role to enable development of hydropower
Various Statutory Clearances from Central/State Government departments are required in a time-bound manner to enable early project start-ups. Otherwise the project cost goes up so much even before start of project that it becomes unviable. The planned tariff itself becomes so high that it becomes difficult to sign PPA or get financial closure.
Enabling Infrastructure cost to be borne by respective sectors.
Apportioning the Flood Moderation Cost.
Long tenure affordable loans or tax free bonds, subvention scheme
Extended Depreciation period.

7. HYDRO POWER DEVELOPMENT - Possible solutions ….
The States should provide enabling environment by reviewing their respective Hydro Policy:
PAFs to get shares from LADF in form of direct benefit transfer upon completion of project from generation income as incentive to aid project works
Provide security to the project area and personnel free of cost
For making hydropower affordable, some thought has to be given for reduction / sharing of cost elements like Cost of land, NPV of Forest land, CAT plan, Security, Infrastructure like roads and bridges etc., which form a major cost component.
Monetizing the latent benefits of hydropower projects like flood moderation, peaking support, balancing power support, high ramping rate, black start capability, reactive power support and rotational inertia etc. can be another way to rationalize the tariffs.

8. Issues to be addressed during Project implementation
Competent and committed Contractors, Project Managers & other technical personnel, who can ensure the three requirements of time, cost and quality in project implementation.
Use of state of the art construction methods to avoid time and cost over-runs.
Using construction methodology with emphasis on least impact on environment.
Strict implementation of specified Environment Management plan to mitigate the impact on the environment.
State to ensure no disruption in construction activities.
Sustained public awareness campaign to dispel misconceptions/ apprehensions from people mind about hydropower projects.

9. To conclude
Development of hydropower projects in India needs to be encouraged. The issues affecting the growth of hydropower need to be highlighted and solutions have to be evolved and implemented. This is necessary so that the nation can benefit from a natural resource, which can help in integrating large scale RE, as well as provide water security to the country.
Thank You !