Buoyed by the increasing policy support from the government, the International Energy Agency (IEA) expects the country to add 26,000 megawatt (MW) of hydropower projects by 2030. Currently, the installed capacity of the 207 hydropower projects running in the country is 46,209 MW. More than 9,000 MW of large hydro projects are under construction at present.
The present installed capacity includes the 4,785 MW of pumped storage hydro projects, which are used devices for storing electricity. Another 1,500 MW of pumped storage hydro projects are under construction. The IEA forecasts pumped storage hydro fleet almost tripling by 2030 to accommodate growing solar capacity.
The government has recently awarded 1,200 MW of renewables and storage in a tender that included 900 MW of pumped storage, offering a weighted average price of Rs 4.04/unit and a peak tariff of Rs 6.12/unit, and 300 MW of battery storage at average Rs 4.3/unit peak tariff of Rs 6.85/unit.
In 2019, the government classified conventional hydropower and pumped hydro projects greater than 25 MW as a renewable energy source, making them eligible for more affordable renewables-only financial support. In the “Hydropower special market report” recently launched by the IEA, the agency noted that the introduction of a specific purchase obligation for hydropower will stimulate demand in electricity distribution companies (discoms).
“Financial support such as grants for enabling infrastructure and flood control, and policies enabling cross-border trade among India’s states, also support hydropower development,” the report noted.
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