SMALL HYDRO PROGRAMME IN INDIA. Bhuwanesh Kumar Bhatt Ministry of New and Renewable Energy

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1 SMALL HYDRO PROGRAMME IN INDIA Bhuwanesh Kumar Bhatt Ministry of New and Renewable Energy bhattbk88@gmail.com; bkbhatt@nic.in

2 MILESTONES IN RENEWABLE ENERGY DEVELOPMENT IN INDIA 1980s - Setting up of Dept. of Non-Conventional Energy Sources. - Promotional Programmes initiated for solar thermal, Solar PV, wind power, etc. - Setting up of IREDA. 1990s - Full fledged Ministry for Non-Conventional Energy Sources - Announcement of State Policies for purchase of renewable power. - Major programmes for Biomass, SHP, SPV, Wind, etc Goals set for 2012 for mainstreaming. - Electricity Act introduced in 2003 which lays down a requirement of minimum renewable power purchase obligation on each State utility.

3 Renewable Power Potential S. No. Resource Estimated Potential (In MW eq. ) 1. Wind Power (as per C-WET estimates at 80 m hub height) ~ 100, Solar Energy > 100, MW/ sq. km. 3. Small Hydro Power (up to 25 MW) 20, Bio-Power: Agro-Residues 17,000 Cogeneration - Bagasse 5,000 Waste to Energy: - Municipal Solid Waste to Energy 2,600 - Industrial Waste to Energy 1,280 Total >2,45,880 3

4 Plan wise Renewable Power Growth Beginning of 10 th Plan (MW) Beginning of 11 th Plan (MW) Target 11 th Plan (MW) 11 th plan Achvmnt. (MW) Cumulative Achvmnt. up to (MW) Wind 1,628 7,092 9,000 10,260 21, Small Hydro 1,434 1,976 1,400 1,419 3, Bio power 389 1,184 1, * Solar Total 3,453 10,255 12,380 14, ( )# *Excluding MW from Waste to Power # including waste to Power

5 Renewable Energy Programmes The Programmes of the Ministry are classified as: Grid Interactive and Distributed Renewable Power Grid - Interactive Off-grid power systems Renewable Energy for Rural applications Renewable Energy for Urban, Industrial & commercial applications Research, Design, & Development in RE

6 Contribution of Renewables after 12 th Plan ( 2017) At the end of 12 th Plan, the total power generation capacity of the country is expected to be 318,800 MW Renewables are expected to contribute about 17% in this capacity (55,000 MW) & Over 9% in the electricity mix

7 Renewable Energy in 2017 De-centralised applications of solar, biogas, cook stove would be wide spread. Energy Access in rural areas is a priority target 5000 villages New avenues of setting up micro hydel projects based on velocity of water on rivers / canals are emerging Waste to energy would be a viable option Bio energy based power generation would be an attractive option for village electrification and economic activities More application of hydrogen / fuel cells would be developed

8 HISTORY OF SHP IN MNRE MNRE has been assigned the responsibility of Small Hydro Power (SHP) upto 25 MW station capacity. Subject up to 3 MW transferred from MOP in Subject up to 25 MW transferred from MOP in 1999.

9 SHP STATUS Potential Identified potential Installed Capacity Under implementation Target 11 th Plan Achievements - about 20,000 MW - 19,749 MW (6,474 sites) - 3,990.9MW (1019projects) (20.20%) MW(233 Projects) MW MW Average capacity addition per year MW

10 Types of SHP Schemes Run-of-river Canal fall based Dam Toe based In stream

11 CLASSIFICATION OF SHP BASED ON CAPACITY Capacity Type Use Up to 5 KW Water Mills/ Pico Hydro For local/individual use Up to 100 kw Micro Village electrification 101 kw to 2000 kw Mini Village Electrification & Grid 2001 kw to kw Small Grid

12 Purpose of Small Hydro Commercial SHPs Aims to sell electricity to power distributing or trading companies or for captive use Are grid connected and are relatively larger capacity have high load factor Financially sound

13 Purpose of Small Hydro Social Sector SHPs Aims to supply electricity specially in stand alone mode, Normally located in remote areas Small capacity Involved in distribution Needs supported by government O&M is recovered through user charges collection

14 SHP DEVELOPED BY Private Sector Government utilities Joint ventures Local Bodies NGOs

15 PRIVATE SECTOR INITIATIVES World s largest SHP development programme through private sector participation Policies for private sector participation for SHP development announced by 24 States Over 8500 MW capacity SHP sites offered/ allotted to private sector for their development

16 PRIVATE SECTOR INITIATIVES 328 SHP projects aggregating 1748 MW commissioned by the private sector. Karnataka MW Andhra Pradesh MW Himachal Pradesh MW Maharashtra MW Uttaranchal MW Punjab MW West Bangal 6.45 MW Orissa MW

17 PROCEDURE FOR SHP DEVELOPMENT IN INDIA Small Hydro is a state government subject and hence state government allots the sites. Site may be ready with investigations, report or may not be with any data Sites are allotted to private sector on MOU, advertisement based by state government through nodal agency. All SHPs are dealt and approved techno-economical at state level 17

18 PROCEDURE FOR SHP DEVELOPMENT IN INDIA Implementation agreement, power purchase agreement is drawn between IPP and state utility. State Electricity Regulatory Commission approves the tariff Environment clearance not required for projects below and upto 25 MW 18

19 Social Sector Project below 500 kw- End Use Rural Industry deprived of reliable and adequate electricity Agro Industry for irrigation and agro produce Tea and Coffee plantation industry Drinking water Textile industry Use of mechanical power Use of electricity Sale of Electricity

20 FEED-IN POLICY THE DEFINITION A feed-in-policy is the one that sets a fixed, guaranteed price over a stated fixed-term period when renewable power can be sold and fed into the electricity network, and usually guarantees grid access to renewable electricity generators. Some policies provide a fixed tariff whereas others provide fixed premium payments that are added to wholesale market or cost-related tariffs.

21 PRIVATE SECTOR PARTICIPATION IN PROJECT DEVELOPMENT To attract private sector: Governments will have to make the investment destinations attractive; Give clear direction through Policy and Develop confidence that the investments are safe and returns would come with reasonable certainty. The Governments should indicate its priority

22 POLICIES and MEASURES For stimulating increased deployment ofrenewable Energy projects Renewable Purchase Obligations Tendering schemes Feed-in law Feed-in premium Feed-in tariffs Fiscal and financial support incentives such as direct production support investment subsidies, low interest loans, tax measures Policies for removing administrative and grid barriers

23 Renewable Purchase Obligations (RPO) Minimum share of electricity in over all electricity mix Often combined with tradable green certificates Obligated entity failing to meet its RPO faces penalty Financial value of green certificates determined by : level of RPO( demand v/s supply) penalty amount duration of RE eligible under the RPO system If RPO is low and penalty is too low than the value of RE in market will be low Fine tuning of quota obligation is utmost important

24 GOVERNMENT PRIORITY Government of India has clearly indicated that renewable energy is to be promoted. The Electricity Act 2003 of India mandates State Electricity Regulatory Commission(SERC) to promote renewable energy by providing connectivity with the grid, sale of electricity to any person. To specify a percentage of renewable power to be purchased by distribution licensee (Renewable Purchase Obligation) Empowers the Commissions to determine the tariff

25 Components of Feed-in-Policy The feed-in policy should indicate The applicability and control period of the policy Mechanism for tariff determination Tariff issues Methods / Parameters of determining tariff Terms and conditions for applicability of the policy

26 SUPPORT AREAS UNDER SHP PROGRAMME The MNRE has been providing financial support / subsidy for the following activities to develop the SHP sector : Resource Assessment, Detailed Survey & Investigation, DPR Preparation and perspective plan for States Capital Subsidy to State Sector Projects Subsidy for Commercial Projects Renovation & Modernization of old SHP projects Micro Hydel & Water Mills Research & Development, Capacity building

27 MNRE SUBSIDY From 1990 onwards, Government sector SHP projects are given capital subsidy During , private sector projects were given interest subsidy Since , both public and private sector are given capital subsidy Government sector projects are given subsidy linked to progress. For private sector projects, the subsidy is released to FIs to reduce loan on successful completion of the project.

28 Support for Resource Assessment & DSI/ DPR: Eligibility Criteria: Only Central / State /UT Government Dept. & Agencies in the State/UT are eligible for financial incentives under this scheme. The proposals for DPR will be considered for identified potential SHP sites where pre-feasibility studies have been completed, and the report is enclosed. Financial support will depend on the basis of capacity indicated in the pre-feasibility report (PFR) while applying to the Ministry. 28

29 Support to new SHP projects in State sector:

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31 Eligibility Criteria new SHP projects in State sector: The financial support would be provided for setting up new SHP projects taken up in the Government /State / Public Sector by the Government departments/agencies/sebs etc. which are declared as State nodal dept./agency by the State Govt. & made responsible for SHP development in the State/UT or the owner of the proposed SHP project. Application form complete in all respect including statutory clearances is to be submitted in the Ministry along-with following documents: i. Approved DPR (with a copy of TEC) ii. Power Purchase Agreement iii. Implementation Agreement with State Government/Allotment Order iv. Confirmation on availability of fund over and above MNRE 31 CFA.

32 Proposed Support to SHP Projects in private /co-operative / joint sector : Category Special Cat. & NE States Up to 25 MW Rs. 1.5 crore/ MW limited to Rs crore per project Other States Rs. 1.0 crore/ MW limited to Rs crore per project. ELIGIBILITY CRITERIA : Application complete in all respect is to be submitted in the Ministry within six months from the commencement of project work at the site or obtaining financial closure with the Financial Institution / Bank whichever is earlier alongwith following documents: i. Approved DPR (with a copy of TEC) ii. All statutory clearances iii.power Purchase Agreement iv.implementation Agreement with State Government 32 v. Loan Agreement between FI and Developer

33 Support to Water Mills and Micro Watermill Mechanical Output Electrical output (upto 5 KW) or both mechanical & electrical output (upto 5 KW) Hydel : Rs. 50,000/- per Watermill Rs. 1,50,000/- per watermill Micro Hydel upto 100 KW Rs. 1,25,000/- per KW Eligibility Criteria: The CFA for watermills and micro hydel projects under the Scheme is applicable for the projects to be implemented by the State Government Department/ State Nodal Agency/ local bodies/ Co operatives /NGOs & Entrepreneur. 33

34 Water Mills

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36 Support for Renovation & Modernization : Eligibility Criteria: Existing SHP projects upto 25 MW capacity which were commissioned for a minimum period of seven years prior to the date of submission of the R&M proposal to the Ministry. Past performance and factors for lower generation shall be guiding factors for considering the R&M proposals, Replacement of minor items which would have been covered under routine maintenance shall not be covered under this scheme. 36

37 Human Resource Development Small hydropower involves multi-disciplinary activities like planning, design, tendering, execution and operation & maintenance. Civil, electrical, mechanical, electronic engineering are the major disciplines for hydropower. Due to rather difficult conditions in the areas where hydropower source exist the volunteers to take up hydropower as their field of expertise, are not easily available. It is required to motivate the local people by providing them training and after training they may be work as URJA MITRA Courses need to be designed for such people at diploma & technician levels. The multi disciplinary specialist course(s) at different level to match the requirement is also required.

38 Constraints in faster Growth Difficult locations where SHP projects are set up Short working season in hilly areas Involvement of private and forest land The risks due to natural calamities Time taken in allotment of sites and obtaining statutory clearances in the States Lack of Hydrological data and monitoring system Inadequate evacuation and transmission facilities

39 Capacity development is the key to success for scaling up of SHP programme for planning, oversight, and monitoring; training to all project developers/enterpreneurs, facilitators, financial institutions and community members; adopting the standard equipments and designs The Electro-mechanical equipments of MHP Projects also need to be made grid compatible so that as and when grid is available it can be synchronized with the grid and this way PLF can be increased. Upfront public financing POSSIBLE SOLUTIONS Encouraging higher participation of private sector Continued support R& D in several areas

40 Up coming Technologies Ultra low-head (ULH, less than 3m head) micro hydropower generating system Utilizing existing infrastructure in irrigation canals and other man made water channels Relative ease in operation and maintenance Mini-grid option to rural productive uses Dual mode (off/on grid) capability 40

41 Ultra Low-Head micro hydropower technology pilot demonstration project at IRI Bahadrabad, Uttarakand (supported by UNIDO) 41

42 Livelihood s

43 Community Participation Public Participation in Sustainable/ Renewable Energy Programme has numerous benefits particularly in remote areas where operation of energy projects becomes expensive and difficult to maintain by developer. For sustainability of decentralized MHP projects youth may be trained as URJA MITRA

44 Way Forward Government of India is Planning to launch a National Mission of Small Hydro. Proposes to add 5000 MW Run of the River SHP 1000 MW on Canals 5000 micro hydels / water mills Experiment with low head and Velocity Turbimes

45 THANK YOU