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Hydro Development - The Challenges and Response. R.V. SHAHI SECRETARY MINISTRY OF POWER GOVERNMENT OF INDIA. ICOLD Conference Montreal (Canada) June 20, 2003. Share in generation - Global scenario. 1973. 2000. 6,121 TWh. 15,379 TWh.
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Hydro Development - The Challenges and Response R.V. SHAHI SECRETARY MINISTRY OF POWER GOVERNMENT OF INDIA ICOLD Conference Montreal (Canada) June 20, 2003
Share in generation - Global scenario 1973 2000 6,121 TWh 15,379 TWh ** Other includes geothermal, solar, wind, combustible renewables & waste • Hydro share has reduced from 21% to 17.1% • Nuclear share increase significant from 3.3% to 16.9%
Hydro Potential - Global Scenario Only 18% of hydro potential utilised in India % Potential utilized 58% 41% 31% 18% 18%
Hydro development : Rationale Fuel Mix Years
Thrust on hydro • Consistent shortages caused emphasis on short lead projects • Increase in thermal proportion - Abundant coal reserves / shorter project lead / lesser R&R problems • Still shorter lead of gas projects caused emphasis off the longer lead hydro projects • Nuclear also developed as reliable mode of thermal generation Contd…...
Thrust on hydro Contd…... • Despite best efforts during planning stage, the hydro development constrained due to longer gestation construction period • environmental constraints • rehabilitation & resettlement problems • inadequate investigations : - geological / hydrological surprises Contd…...
Thrust on hydro Contd…... • Turnaround now in hydro development • Government of India committed quantum jump in financial allocations • Varied facilitating measures undertaken # Added during last twenty years - 13,666 MW To add during five years (2002-07) - 14,393 MW Contd…...
Thrust on hydro Contd…... • Hydro the preferred source • Clean power - no pollution ramifications during operation • Most cost effective option, free from inflation linked to fuel consumption • Effective tool for load management - to counter large variations between peak and off peak requirements and frequency variations • Supports and supplements socio economic development of the region - hydro potential mostly in areas which need substantial support for economic development • Integrated solution for power, drinking water and irrigation
Initiatives on hydro development Policy on hydro development by Government of India : • Ensuring higher capacity addition through : • Enhanced Central Sector outlay • Advance Action plan for next ten years • Exploitation of untapped hydroelectric potential • Ranking Studies • Basin wise Action Plan • Preparation of feasibility studies and DPRs - 50,000 MW hydro initiative Contd...
Contd…... • Promoting small and mini hydel projects • 25 MW and below fall under ‘non conventional’ category - qualify for benefits • Tariff dispensation • Rationalization of hydro tariff by allowing premium on sale rate during peak period • CERC has approved 5% hydro development surcharge on annual fixed charges for Central hydro stations Contd...
Contd…... • Facilitating and expediting measures undertaken • Three stage clearance procedure for Central Sector/ Joint ventures • Simplified clearances further liberalized by Electricity Act, 2003 • Resolution of inter State issues on sharing of water and power • Support for land acquisition, R&R, Catchment Area Treatment • Emphasis on quality of Survey and Investigations • Renovation, Modernization & Uprating of existing stations
Hydro development - the process Potential assessed(845 Schemes) 150,000 MW Ranking Studyof unharnessed 399 schemes 107,000 MW Hydro Initiative(162 schemes) 50,000 MW
50,000 MW Hydroelectric Initiative • 162 schemes identified with installed capacity of 50,560 MW located in sixteen States • Initiative launched in May 2003 • Consultants identified to undertake Feasibility Studies • Preparation of Preliminary Feasibility Reports - Dec.’03 - Sep.’04 Contd...
50,000 MW Hydroelectric …….. Contd…... • Detailed Project Reports - Jan.’04 - Jan.’06 for promising projects, depending on PFRs results • DPR preparation also through reputed International Consultants • Process of selection of Consultants for DPR of large projects through ICB • Clearances / sanctions - Sep.’04 - Jul. ‘06 • Implementation - 2007 - 2017
Major Challenges and Response Environment protection • Comprehensive legislation in place with well laid out principles and guidelines • Environment Impact Assessment (EIA) studies carried out to evaluate pre and post construction scenarios • Minimum use of forest area and close monitoring to ensure efficient implementation of EMPs • Plan to create Forest Banks for compensatory afforestation Contd...
Contd…... Rehabilitation and resettlement Lessons learnt from past - greater synthesis now between project developers, affected persons and authorities • A national R&R policy being contemplated • In parallel Ministry of Power has stepped up coordinated efforts with local / state authorities • Project specific monitoring mechanism put in place to ensure implementation of R&R plans Contd...
Contd…... Safety of Dams • Built up considerable knowledge base from global experience • A few Institutions in the country have also geared up - hardware/ software • Experts of repute from across the countries consulted for studies and guidance Reliability of Investigations • Technological / procedural improvements in Survey & Investigations • State of Art equipment / technology • Consultation with Experts - a continuous process Contd...
Contd…... Multiple agencies’ clearances The players : M/o • Power • Environment & Forest • Water Resources / Central Water Commission • Continuous process of improvement • Procedures streamlined • Speedy clearances • System of regular Inter Ministerial reviews in force Contd...
Contd…... Compressing Construction cycle • Construction management • Construction lead reduced - 4 to 5 years • Clearance / approval period reduced by 18 to 24 months with Three stage clearance procedure • Construction technology • Choice of technology - mitigate the geological / hydrological surprises - faster implementation Contd...
Contd…... Communication Consensus arrived through regular consultation process • Political consensus • Public awareness • Media support Contd...
Opportunities in Indian hydroelectric sector Hydro Capacity addition target : 2002-07 - 14,000 MW 2007-17 - 50,000 MW • Detailed investigations and preparation of DPRs • EPC contracts for development of projects • Package contracts in other projects • Investment as equity partner / J.V. opportunities • Funding for the project
Major concern, so long, of the investors - Poor financial health and creditworthiness of the Sector : Distribution Reforms, the key confidence indicator • Electricity Act, 2003 notified and A.P.D.R.P. scheme introduced by Government of India : Distribution business to become commercially viable within next 3 to 5 years • Competitive Environment, Power Trading Hydro as inexpensive power more viable
Thank you Ministry of Power Website http://powermin.nic.in