Hydel projects to add 14,000 Mw by 2032-33, CEA Chairman reckons

CEA Chairman Ghanshyam Prasad says hydropower and pumped storage projects will underpin India's renewable energy expansion, with approvals and clearances being expedited

Hydropower projects with a combined capacity of 13,000-14,000 megawatt (Mw) are expected to be commissioned by 2032-33, Central Electricity Authority (CEA) Chairman Ghanshyam Prasad said.

 

He also said the government is targeting 2.6 gigawatt (Gw) of pumped storage projects (PSPs) this year and 2.9 Gw next year. The focus is now on accelerating PSP development through faster approvals, better-quality detailed project reports (DPRs), simplified clearances, and early excavation permissions.

 

Speaking at a recent event, Prasad said hydropower and PSPs would be central to supporting India’s renewable energy expansion by providing the reliable and flexible capacity needed to balance rising solar and wind generation. “A huge amount of variability is getting introduced into the grid. We need stable and reliable sources that also provide inertia. Hydropower is going to be the key development in the country. We have not been able to harness even 50 per cent of the potential in the country,” he said.

   

Stressing the need to reduce approval timelines, he said, “We need to change the mindset of every stakeholder in the hydropower sector, whether developers, financing institutions or equipment suppliers. The old notion that hydropower projects take 20 years to complete will not work.”

 

Against the Ministry of Power's target of clearing a PSP within 90 days, the CEA has been approving projects in less than 30 days after the DPR is completed and uploaded to the CEA website, he added.

 

The CEA has also started granting early excavation permissions, allowing developers to bid for projects, mobilise resources, and begin preliminary work sooner. “After obtaining environmental and forest clearances and preparing DPRs, we can allow developers to begin early excavation activities. We have found that this saves around one year in the construction timeline,” he said.

 

Prasad said developers can construct closed-loop, offstream PSPs in around three to four years. To speed up environmental and forest clearances, PSPs have been classified into three categories, one of which covers closed-loop, offstream projects that have no river linkage and do not require interstate clearances.

 

“These are placed in a category requiring minimal clearances. The Ministry of Environment, Forest and Climate Change (MoEFCC) also clears them faster, and additional relaxations have been provided, particularly in terms of the number of drill holes required," he said.

 

To encourage greater private-sector participation, self-identified sites are being promoted for PSP development. “This intervention has prompted private investors and companies to enter this segment. Almost all the projects currently in the pipeline are coming from the private sector," Prasad said.

 

The country’s assessed PSP potential, which stood at about 94-97 GW in 2022, has now increased to around 270 GW, with new sites being identified every month, he added.

 

In a report, the CEA estimated that India’s storage capacity requirement will rise to 62 Gw by 2029-30, 161 Gw by 2034-35, and 476 Gw by 2046-47. Recognising the strategic importance of PSPs, the report assessed the current status of pumped storage development, policy support, and regulatory measures needed to facilitate the timely and viable development of 100 Gw of PSP capacity by 2035-36.

 

Prasad also urged equipment manufacturers to expand capacity to avoid supply-chain bottlenecks. If shortages emerge, the country may have to import equipment, as the pace of capacity addition is unlikely to slow. “If there is demand and developers feel constrained by a lack of equipment within the country, imports can be explored on a case-by-case basis," he said.

 

He also said the CEA is in discussions with the finance ministry to extend renewable energy-like benefits to PSPs. “The matter is already with the finance ministry, and discussions are underway. But it is not an easy nut to crack,” he said, while urging developers to apprise the CEA of issues that need to be taken up with the MoEFCC.

 

On the higher insurance premiums for PSPs, Prasad invited the industry to offer suggestions. He said insurers' concerns have largely been linked to conventional hydropower projects, particularly those in geologically fragile regions and following recent flood events. However, no such concerns have been reported for PSPs.

 

“We are engaging with banks and insurance companies to understand these concerns and explore ways to mitigate them," he said.

 

Prasad added that the largest PSP currently under development has a capacity of 3,000 Mw at a single site, but this will soon be surpassed by a 3,660 Mw project. Another developer is planning a project with more than 5,000 Mw at a single location, he said.