RENEWABLE ENERGY

SOLAR ENERGY

Solar energy refers to the light and heat harnessed from the Sun using technologies like solar heating and photovoltaics.

Need/Advantage of Solar Energy

1. Energy Security

• Fulfill India’s clean energy demand: Reduces dependence on fossil fuels and imports, lowering import bills.
• Cheap and Reliable Energy Source: Solar electricity system costs have been reduced by 50%.
• Diverse applications: Ranges from water distillation to powering satellites.

2. Economic Development

• Industrial growth: Provides proper, continuous energy necessary for industrial development.
• Employment generation: Creates jobs for solar designers, service professionals, and small businesses engaged in installations.
• Low costs: Solar energy equipment has a long life and requires minimal maintenance, enhancing energy infrastructure security.
• No transmission loss: Reduces transmission and distribution losses common with conventional electricity systems.

3. Social Development

• Human development: Addresses power cuts and electricity shortages, especially in rural areas, fostering human development.
• Green energy in rural areas: Essential for agribusinesses like greenhouses, irrigation, and hay drying, reducing agricultural risks.
• Small and Decentralized Electricity Source: Rooftop generation facilitates uninterrupted power supply and surplus sale to the grid, ensuring financial security.

4. Environmental Benefit

• Environmental Sustainability: Replaces polluting fossil fuels, providing a cleaner energy source.
• Cleanest energy: Produces near-zero pollution, making it the cleanest energy form.
• No climate change: Zero emissions mean no contribution to climate change.
• No harmful effects: Protects biodiversity and wildlife, preventing pollution and protecting human health.

5. Geographical Benefit

• Favorable Location: India, being a tropical country, receives abundant solar energy throughout the year.
• Use of barren land: The most important aspect in current times is that solar plants can be laid on barren and low-productivity agricultural land, avoiding further pressure on fertile and forested areas.

Challenges and Issues

1. Policy issues

• Dependence on Imports: Limited domestic manufacturing for solar components leads to heavy reliance on imported solar cells and modules.
• Renewable Purchase Obligation (RPO) issues: Poor enforcement of RPO regulations, lack of penalties for non-compliance, and inadequate adherence to RPO obligations by state electricity distribution companies.
• Rooftop Solar: Absence of ‘net-metering’ policies in many states restricts the sale of surplus electricity back to the grid, hindering widespread adoption of rooftop solar panels.
• COVID-19 Impact: The projected addition of solar capacity may fall short of targets (e.g., 100 GW by 2022) due to the pandemic.

2. Geographical Issues

• Uncertainty in weather: Solar power system design relies on historical or forecasted weather data, but weather conditions are inherently unpredictable.
• Cloudiness: Reduces sunlight absorption by panels as clouds reflect some solar rays, impacting efficiency.
• Heat build-up: High temperatures during summer can reduce power output by 10-25% as excessive heat increases the conductivity of semiconductors, affecting charge balance and electric field strength.
• Relative humidity: Penetrating moisture in the solar panel frame reduces power output and can degrade module performance over time.

3. Environmental Issues

• GHG emissions: Although solar energy production is considered clean, manufacturing and system installation contribute to greenhouse gas emissions.
• Solar waste: India’s solar waste is estimated to reach around 1.8 million tons by 2050, posing a significant challenge.
• Toxic materials: Production of photovoltaic (PV) systems involves toxic and hazardous substances, which can impact the environment even in small amounts.
• Dependence on weather: Solar energy cannot be produced effectively during poor weather conditions, such as cloudy days, nights, and rainy seasons.

4. Economic

• Availability of Land: Difficulty in finding proper non-agricultural land with good solar irradiance.
• High installation cost: Initial installation costs remain high, making it unaffordable for a large section of the population. Costs include batteries, inverters, wiring, and installation.
• Investment: Uncertainty around import duties and future tax rates hampers investment in solar energy projects.
• Uses a lot of space: Solar PV panels require substantial space, which may not be available on all rooftops.

5. Technological

• Technological challenges: Issues like grid instability and temperature sensor failures in PV cells.

Initiatives

1. Government Initiatives

• National Solar Mission: A major initiative by the Government of India and State Governments to promote sustainable growth and energy security.
• SRISTI scheme: Promotes rooftop solar power projects in India.
• KUSUM scheme: Provides additional income to farmers by enabling them to sell surplus power to the grid through solar projects on their barren lands.
• Suryamitra programme: Prepares a qualified workforce for the solar energy sector.
• Jawaharlal Nehru National Solar Mission: One of the eight missions under the National Action Plan on Climate Change (NAPCC), initially set for 20 GW by 2022, increased to 100 GW by the NDA government.

2. Institutional Initiatives

• Indian Renewable Energy Development Agency (IREDA): A Non-Banking Financial Institution under government oversight, providing term loans for renewable energy projects.
• National Institute of Solar Energy: An autonomous body under MoNRE that serves as the apex R&D institution.

3. International Initiatives

• International Solar Alliance (ISA): An alliance of over 122 countries initiated by India, focusing on promoting solar energy, particularly in countries located between the Tropics of Cancer and Capricorn.
• Paris climate deal: India committed to reducing its GDP emissions intensity by 33-35% by 2030 from 2005 levels.
• Green Climate Fund: Aims for 40% of electric power capacity from non-fossil fuels by 2030 through technology transfer and low-cost international financing.

Way Forward

Cluster Approach

• Establish a manufacturing base as an integrated solar industrial cluster, as seen in various countries.
• A Special Economic Zone (SEZ) focused on integrated module manufacturing could foster a supportive environment.

Policy Measure

• Develop a Solar Waste Management and Manufacturing Standards Policy.
• Estimate that 3% of each state’s wasteland could be utilized for solar power projects.

Time of Day Pricing

• Encourage dynamic load management and energy storage technologies.

Incentivize Decentralized Plants

• Promote solar appliance use and rooftop solar power adoption.

Hybrid Solar Plants

• Utilize spaces between wind power plant towers for solar panel installations, already practiced in some Himalayan regions.

Financing Mechanisms

• Innovative financing options like green bonds, clean energy funds, and incentive-based loan repayment schemes are essential for better utilization.

WIND ENERGY

India’s wind energy sector is primarily driven by the domestic wind power industry, supported by private investments and various financial incentives such as accelerated depreciation benefits and concessional custom duty exemptions.

Potential States

• Highest potential states: Gujarat, followed by Karnataka, Tamil Nadu, and Andhra Pradesh.
• Top producer: Tamil Nadu leads with 7,455.2 MW, followed by Maharashtra (4,450.8 MW), Gujarat (3,645.4 MW), and Rajasthan (3,307.2 MW).

Benefits

1. Economic

• Wind power is cost-effective:
  • Over the past decade, the cost of onshore wind turbines has fallen by 37% and lithium batteries for electricity storage by 85%.
  • State nodal agencies under the guidelines of MNRE have fixed tariffs for wind power purchase.
  • Bidders quoted wind power tariffs as low as Rs. 2.44 per unit for 2 GW of wind power contracts.
• Import bills: In fiscal 2020, India imported approximately 180-190 million tonnes of non-coking coal costing over Rs. 90,000 crore. Wind energy can help reduce this import bill.

2. Environment

• Clean fuel source: Wind energy does not pollute the air like power plants relying on fossil fuels.
• Domestic source of energy: The nation’s wind supply is abundant and inexhaustible.
• Sustainable: Wind is a form of solar energy (due to warm air-pressure differences), so as long as the sun shines and wind blows, energy can be harnessed.
• Water pollution: Wind energy has one of the lowest water-consumption footprints compared to fossil fuels and nuclear power.
• Meeting INDC goals: India’s INDC plans include reaching 175 GW of renewable power by 2022 and increasing non-fossil-based power from 30% to about 40% by 2030.

3. Social

• Creates wealth and local employment: Job creation in manufacturing, installing, and maintaining wind turbines, as well as consulting in wind energy.
  • Example: The Wind Vision Report states wind could support more than 600,000 jobs by 2050.
• Easy integration: Wind farms are compatible with farming and livestock activities on the same land.

Challenges

1. Environmental

• Noise pollution: Turbines can cause noise and aesthetic disturbances.
• Impact on wildlife: Bird collisions with moving blades have been observed.
• Wind turbine syndrome: Alleged adverse health effects related to proximity to turbines, regarded as pseudoscience.

2. Economic

• Financial: Initial investments in wind energy projects are high, with associated risks.
• Per unit price: Wind power still competes with conventional energy generation.
• Land use: Alternative land uses may be valued more than electricity generation.

3. Technical

• Technical: Lack of infrastructures and institutions to carry out R&D, majorly based on European technology.
• Installation land sites: Often located in remote areas, far from cities where electricity is needed.
• Integration with grid: Wind speeds vary throughout the day and year, causing intermittency issues for power grids.
• Fluctuation of Wind and Good wind sites: Wind energy has a drawback in that it is not a constant energy source. Although wind energy is sustainable and never runs out, wind isn’t always blowing.

4. Policy

• Lack of policy support: Policies related to wind energy are still in the transition phase.
• Tariff issue: There is a ceiling on tariffs imposed during auctions. Winds being region-specific makes achieving certain tariff rates difficult.
• Distribution challenge: Discom risks, such as curtailment in power generation and delayed payments to energy producers, pose challenges.

OFF-SHORE WIND ENERGY

Offshore wind power or offshore wind energy involves the use of wind farms constructed in water bodies, typically on the continental shelf, to generate electricity.

1. India’s Potential

• Long coastline: India has a coastline of 7,600 km, offering enormous potential for offshore wind energy.
• Geographic potential: Studies show good wind potential for offshore power at the southern tip of the Indian peninsula and the west coast.
• Estimated potential: India is estimated to have 127 gigawatts of offshore wind power potential.
• Potential states: Gujarat and Tamil Nadu are identified as potential destinations for offshore wind projects.
• Manufacturing base: India has a strong wind power equipment manufacturing base.

2. Advantages of Offshore

• Availability of area: Large areas available for projects make offshore attractive due to the lack of suitable sites on land.
• High wind speed: Speeds are higher at sea than onshore.
• Wind consistency: More consistent at sea, with rare and short-lived calm periods.
• Low transmission cost: Offshore farms are typically near cities and load centers, minimizing transmission losses.
• Lesser disputes: Fewer land disputes, with ample space available for windmills.
• Environmental benefits: Offshore wind farms do not consume water or emit pollutants or greenhouse gases.

3. Disadvantages and Challenges

• Higher cost: Cost of setting up an offshore wind project is higher. The production and installation of power cables under the seafloor to transmit electricity back to land can be very expensive.
• Affect shipping: Deep sea wind farms come with the challenges of assigning no-go areas for commercial shipping.
• Paucity of data: The data required for the calculation of offshore wind potential and identification of suitable sites are not available.
• No regulatory framework: Currently, there is no dedicated regulatory framework available for offshore wind energy on the lines of the Jawaharlal Nehru National Solar Mission (JNNSM) for the promotion of solar energy.
• Higher energy tariff: Offshore windmills are more expensive than onshore ones, power generated from the former could cost around Rs 12 per unit, compared to around Rs 2.43 for onshore wind power, the cheapest source of renewable energy in India today.
• Manufacturing issues: Offshore wind farms typically have larger turbines and longer windmill blades. But most firms in India don’t yet make such high-capacity machines.

Government measures

1. Initiatives for wind energy
   • National Clean Energy Fund (NCEF): Proposed in order to finance and support clean energy.
   • National wind-solar hybrid policy: To develop 10+ GW capacity of wind-solar hybrid projects by 2022.
   • Wind bidding scheme: Wind projects of 1+ GW capacity connected with Central Transmission Utility (CTU).
   • Policy for repowering of wind energy projects: To ensure the optimum usage of wind resources by providing a better framework for repowering.
   • Wind Resource assessment Programme: More than 700 wind monitoring centers have been established.
   • Renewable purchase obligation: To promote the generation of renewables such as wind energy, a renewable purchase obligation has been put in place for state DISCOMs and large consumers, enforced by state electricity regulatory commissions.
   • Waiver of Inter-state transmission charge: Ministry of Power has waived inter-state transmission charges on wind (and solar) power from power plants commissioned up to March 2022 for a period of 25 years.
2. Initiatives for Offshore wind energy
   • National Offshore Wind Energy Policy: A policy detailing the government’s roadmap on offshore wind energy, involving mapping the country for potential locations for development through a bidding process.
   • Offshore wind energy project in Gujarat: The National Institute of Wind Energy (NIWE) under MNRE has issued an Expression of Interest (EoI) for India’s first offshore wind energy project, aimed at developing a 1 GW offshore wind energy project in the Gulf of Khambhat, off the coast of Gujarat.
   • Government funds: In offshore wind energy sector, the Government of India has already allocated Rs 10,000 crore as the initial seed money from clean energy fund, which is basically collected from coal cess. 

Way forward

• Government funds: In offshore wind energy sector, the Government of India has already allocated Rs. 10,000 crores as the initial seed money from clean energy fund, which is basically collected from coal cess.
• The introduction of Generation based incentive (GBI): GBI and Renewable energy certification schemes turned out to be necessary steps, would decrease the wind energy prices.
• Indigenous manufacturing: It can be encouraged by providing incentives and subsidies on locally manufactured products.
• E-bidding of the wind projects: It requires 3 months and a period of one and a half year is utilized in completing the project. Bidding process can be further streamlined.
• Various barriers: The technical, environmental, economic and socio-economic barriers along with policy issues and uncertainties need to be eliminated.
• Offshore wind projects: They are one of the most effective way to utilize wind energy, thus need strong policies and resource assessment to commercialize offshore projects.
• Research and Development: To promote research and innovation, establishment of financially stable institutionalized research centers in each windy state is the need of hour.

GEO-THERMAL ENERGY

The energy obtained from heat stored in the earth crust is called geothermal energy. It is basically stored in earth crust up to depth of 3 to 4 km.

Geothermal energy and India

1. Potential: Geothermal which can be harnessed is around 10 GW as per Geological survey of India.
2. Regions: GSI has identified and mapped over 350 geothermal regions across the length and breadth of the country.
3. India’s geothermal sources have been divided into two main categories:
   • Orogenic sources: Himalayan region, Naga-Lushai hills of the Northeast, Andaman and Nicobar Islands.
   • Non-orogenic sources: Narmada-Son rift valley, Damodar rift valley, Godavari valley, Cambey graben etc.
4. Prominent geothermal regions in India include: Cambay Graben in Gujarat, Puga and Chhumathang in J&K, Tattapani in Chhattisgarh, Manikaran in H.P, Ratnagiri in Maharashtra, and Rajgir in Bihar.

Current Incident

• India is going to get its first geothermal power project in Ladakh.
• On February 7, 2021, an agreement for establishing the first geothermal Power Project was announced.
• It would help it tap the potential of natural geysers touching the Puga area which happens to be 170 km east of Leh. The project would be undertaken by ONGC.

Characteristics of Geothermal Energy

• Renewable form of energy,
• Clean form of energy as it emits very few GHG,
• Reliable as it is available in abundance and homegrown as it reduces dependence on import of energy.

Benefits of Geothermal Energy

1. Environmental
   • Clean fuel: Only 1/6th of Carbon dioxide is being emitted from a geothermal field as compared to natural gas-fired power plants. Hence less pollution and control of climate change.
   • Recycle of Ground Water: It prolonged the life of the reservoir as it recycles the treated waste water by reinjection, the dissolved mineral contained in the geothermal fluid along with excess water back in reservoir at depth well below ground water aquifers.
   • No Fuel Required: Since geothermal energy is a naturally occurring resource, there is no fuel required, such as with fossil fuels that are a finite resource which needs mining or otherwise extracting from the earth.
2. Economic
   • Saving of money: Money can be saved by ground source heat pumps resulting in reducing electricity bill as it only involves capital cost and minimal maintenance cost.
   • Economical: Although there is high initial cost of project but average unit produced per year is very high as compared to other sources of renewable energy.
   • Wide application: Geothermal Energy (other than Power) can be used in melting snow, poultry and fish farming, cold storage, mushroom farming, green houses, space heating etc.
   • Small footprint on the land: Can be partially built ground.
   • Reliable: Energy generated from this resource is easy to calculate since it does not fluctuate in the same way as other energy sources, such as solar and wind. This means we can predict the power output from a geothermal plant with a high degree of accuracy.
3. Geographical
   • Global distribution: It has an extensive global distribution in both developed and developing countries, unlike fossil fuels.
   • Independent of weather: Its production is independent of weather or season, unlike renewable such as wind and solar power.

Challenges/Issues

1. Economic
   • High upfront cost: Installation of GT technologies is highly capital-intensive although there is no cost of fuel use.
   • Constant and high maintenance: The geothermal steam contains minerals which are corrosive to pipes and equipment, requiring constant maintenance.
2. Environmental
   • Air pollution: The geothermal steam contains hydrogen sulphide gas, which has the odour of rotten eggs, and causes air pollution.

1. Geographic
   • Very less exploration of geothermal energy sites: Very few percent of potential Geothermal Energy regions and sources have been explored and mapped till now.
   • Difficulty in access: Location of many sources of geothermal energy in inaccessible and harsh areas like high mountains, polar areas, etc., makes their exploitation a difficult task.
   • Location Restricted: Geothermal plants need to be built in places where the energy is accessible, which means that some areas are not able to exploit this resource.
   • Earthquakes: Geothermal energy also runs the risk of triggering earthquakes due to alterations in the Earth’s structure as a result of digging.
   • Geographical challenge: There needs to be a geological heat source relatively close to the surface or at an approachable depth.
2. Other
   • Unpopularity: Less popular and less known as compared to other renewable sources of energy.
   • Technology deficit: Geothermal technologies are not fully developed and are still at an infant stage in our country.
   • Safety issues: Since many harmful gases escape from the geothermal vents, they can be difficult to contain and dispose of properly.
   • Sustainability: Energy fluid needs to be pumped back into the underground reservoirs faster than it is depleted. Management is required to maintain sustainability.

Initiatives

1. Government
   • Geothermal power plant: The government is building a geothermal power plant, e.g., in Chhattisgarh, Tattapani Geothermal field in SONATA.
   • Subsidy: For industrial projects, the government has planned to provide capital subsidy of up to 30%.
   • MNRE push: Large incentives and subsidies for research, design, development, and demonstration for harnessing geothermal energy in India by MNRE.
   • Draft Indian geothermal energy development framework
     • Aim: The geothermal policy envisages making a substantial contribution to India’s long-term energy supply and reducing national greenhouse gas emissions by developing a sustainable, safe, secure, socially, and environmentally responsible geothermal energy industry.
     • Target: Apart from creating new employment opportunities and leading to environmentally sustainable development, the plan aims for the deployment of 1,000 MW geothermal energy capacity in the initial phase till 2022 and 10,000 MW by 2030.
2. Global
   • International Geothermal Association: It is an international non-profit, non-political, non-governmental association representing the geothermal power sector worldwide.
   • Global Geothermal Alliance (GGA): Launched at COP21, the Global Geothermal Alliance (GGA) serves as a platform for dialogue, cooperation, and coordinated action between the geothermal industry, policymakers, and stakeholders worldwide.

Way Forward

• Policy measure: Develop a geothermal energy production and harnessing policy which sets a course of action for the development of this sector.
• Better Governance framework: In form of sector-specific strategy, transparent process for geothermal energy generation, and an overarching policy framework.
• Demonstration: Plans should be made to develop demonstration projects initially, each for geothermal electricity production and direct heat use applications.
• Financing mechanisms: Need innovative financing measures to promote geothermal power projects. Measures like green bonds, clean energy funds, and generation-based incentive-linked loan repayment can be more effectively utilized.
• Facilitating Private sector Investments: Currently, a minuscule amount of private sector participation is present in geothermal power generation and exploration; this needs to be increased through appropriate incentives.
• Capacity-building: Develop the capacity of the agencies involved in the geothermal power sector along with the introduction of modern techniques and technologies.
• Balance of hegemony: Many developing countries are situated along these geothermal belts and can use this resource to balance the hegemony of nations rich in fossil fuels.

Conclusion After the Paris Climate Summit, the need to invest in non-conventional, carbon-free sources of energy has become inevitable. Geothermal energy provides for a renewable and reliable source of energy.

HYDRO ENERGY

It refers to the utilization of the earth’s natural water cycle to produce electricity. It uses energy present in water and not the water itself. It is a renewable source of energy.

Potential

• Country Energy generation: 45GW is from hydropower.
• Potential: Hydro potential of 148GW, but only 31 percent of the total potential is harnessed.
• Global scenario: India is blessed with an immense amount of hydro-electric potential and ranks 5th in terms of exploitable hydro-potential on the global scenario.
• Share as per time: The share of hydropower in the total capacity has declined from 50.36% in the 1960s to around 13% in 2018-19.
• Northeast has the highest hydropower potential followed by the Himalayan region of North India and peninsular India.

Advantages of Hydropower

• Renewable: Hydroelectric energy is renewable as it uses the earth’s water to generate electricity.
• Clean and safe: Unlike fossil fuels, biomass, and nuclear power, hydroelectric power is a clean and green energy source. It does not use fuel and releases no greenhouse gases or toxins into the environment.
• Flexible: Hydropower plants can be scaled up or down quickly to meet changing energy demands.
• Reduce dependence: It is a domestic source of energy, reducing reliance on international fuel sources and enabling states to produce their own energy.
• Continuous availability: Reliable and affordable compared to fossil fuels, which deplete rapidly.
• Cost-competitive energy source: Low maintenance and operational costs due to fewer parts requiring minimal replacements. Dams can last 50–100 years with consistent hydroelectric power generation.
• Suitable for industrial applications: Often built to supply electricity for industrial use, such as aluminium electrolysis.
  • Example: Dam construction and industrial development near the Damodar River.
• Hydropower projects create reservoirs: Offers recreational activities like fishing, swimming, and boating.
• Other benefits: Flood control, irrigation, and water supply.

Major Challenges

1. Economic Challenges

• High upfront capital costs: Construction of power plants and dams is costly due to logistics.
• Time and cost overrun: Long project durations delay returns on investment.
  • Example: Tehri Dam, Nathpa Jhakri Dam.
• Finance: Projects are capital-intensive, making financing difficult, balancing bankability and affordability.

2. Policy Challenges

• Cess from states: Additional financial burdens due to state-imposed water cesses.
  • Example: Uttarakhand’s water cess.
• High tariff cost: Increased costs due to flood moderation and infrastructure.
• Reluctance in purchase agreements: DISCOMS hesitate to sign power purchase agreements (PPAs) due to initial high tariffs.

3. Regulatory Challenges

• Environmental clearance: Long and difficult process for approval.
  • Example: Subansiri Lower Project in Arunachal Pradesh faced challenges obtaining clearance.

4. Social Challenges

• Relocation due to risk of floods: Populations living downstream are at risk of flooding and displacement due to water releases from dams.
  • Example: The World Commission on Dams estimated in 2000 that dams had displaced 40–80 million people globally.
• Land acquisition and safeguard: Issues in acquiring land delay construction projects.
  • Example: Narmada Dam.
• Social resistance: Resistance due to cultural beliefs and environmental concerns.
  • Example: Protests around the Tehri Dam project.

5. Environmental Challenges

• Failure risks: Dams hold large water volumes, and failures due to poor construction or sabotage can be catastrophic to downstream areas.
• Affect biodiversity: Clearing land for dam construction impacts wildlife and habitats.
• Methane emissions: Decomposing plant matter in flooded areas produces methane and CO2.
• Ecosystem damage and wetland loss: Reservoirs submerge large areas, affecting wetlands and riverine ecosystems.

6. Technical Challenges

• Technical challenges: Depend on project feasibility involving geology, topography, and hydrology.
• Geological surprises: Unpredictable geological conditions, especially in the young Himalayan fold, complicate projects.

7. Other Challenges

• Inter-state disputes: Disagreements over water-sharing delay integrated basin development.
  • Example: Shivasamudra falls linked to the Cauvery water dispute between Tamil Nadu and Karnataka.

SMALL HYDRO POWER

Small Hydro Project: Hydro projects with 25MW capacity or below, classified as small hydro.

Benefits of Small Hydro Power

• Faster environmental clearance: Smaller projects require simpler environmental assessments, speeding up approvals.
• No displacement: Minimal risk of flooding; smaller land requirements prevent large-scale displacement.

• Low upfront cost: Lower investment required compared to large projects.
• Easy land acquisition: Government provisions facilitate simpler land acquisition for small projects.
• Less effect on biodiversity: Smaller projects require less land, reducing biodiversity impact.
• No social resistance: Less community opposition due to minimal recreational and water supply impacts.
• No geographical constraints: Particularly viable in Himalayan and northeastern regions.
• Small scale irrigation: Supports irrigation by providing consistent water supply.
• Low seismic threats: Less risk of earthquake-induced damage due to smaller dams.

Government Measures for Promoting Hydropower

1. New Policy on Hydro Power Development: Aims to prevent the decline in hydropower share, focusing on developing hydro potential, especially in North and Northeast India.
   • Broaden RE definition: Large Hydropower Projects (LHPs) recognized as renewable energy.
   • HPO as a separate entity: Specific obligation for hydropower purchase.
   • Tariff rationalization measures: Extended tariff periods and financial support.
   • Budgetary support: Funding infrastructure for project viability.
2. Small Hydro Power Programme: Initiated by MNRE to engage state entities and private producers in establishing small hydro projects, targeting 21,000 MW potential in phases.

Way Forward

1. Better Governance Framework: Clear policy and strategy for hydropower development.
2. Benefit-Sharing Framework: Engage local communities for smoother project implementation.
3. Facilitating Private Sector Investments: Enhance incentives and reduce financial barriers.

• Facilitate Market Development

• By initiatives like differential tariff structure for peak and off load season
• Hydropower purchase obligations,

• Capacity-building: Develop capacity of the agencies involved in the hydropower sector along with the introduction of modern techniques and technologies.

1. Availability of long-term loan at cheaper interest rate and review the water cess imposed by the states.