Low rainfall doesn’t have direct implications on India’s power generation capabilities. But heavy rains can play spoilsport in electricity supplies as they damage infrastructure.

In India’s electricity mix, hydro power still plays a small role, catering mainly to peak demand in the evenings. A significant portion of the country’s electricity requirement is met through thermal power.

“There is no problem in the hydro power generation for the northern region as plants run on reservoirs filled by snow-fed rivers,” a senior official at the National Load Dispatch Centre said. The hydro share has declined from 44 per cent in 1970 to 18 per cent in 2013, which is mainly due increase in thermal power production. The total installed power generation capacity of the country is 2,40,000 MW, of which only 40,000 MW is met from hydro sources.

High output That delayed rainfall has had little impact on hydro power generation is evident from the fact that till June 30, 2014, hydro power plants across the country produced 33,845.75 million units, the highest for the first quarter in the last four years. Data from the Central Electricity Authority (CEA) reveals that the generation has already beaten the target of 32,541.55 million units for the first quarter. The target for the full 2014-15 fiscal is 1,29,097 million units.

Now, with the monsoon on the revival path, reservoirs storage across the country has also started improving.

According to the Central Water Commission, the storage at 85 reservoirs across the country has reached 61 per cent of the last corresponding period’s storage level and 87 per cent of the average of last 10 years’ storage levels.

Most players in the sector, including public sector hyrdo-power generator NHPC, did not want to comment on the matter. They felt it was premature to connect power generation with the ‘weather Gods’ as it was still not certain whether the year will see deficient monsoon.

Besides, hydro-power companies do not have a back-up plan for deficient rainfall and the plants dependent on reservoirs fed by rainfall will produce less in the event of a weak monsoon.

Full potential Hydro-power in India is yet to reach its full potential. The country has only 4 per cent of the global hydro power capacity. On July 20, 2,822 million units power demand was met and hydro power provided only 14 per cent or 418 million units of power. Total installed capacity of hydropower as on June 30 is 40,730.08 MW, according to the CEA.

“With 63,432 MW of hydro capacity under various stages of development, it is expected that the total hydro potential of the country could be tapped by the end of the 17th Plan, which would offset, to some extent, the energy deficit in the country,” Piyush Goyal, Minister of State (Independent Charge) Power, Coal and New and Renewable Energy, told the Lok Sabha on July 17.

Economical source of power He added hydro power is the only renewable source which has been recognised to be economical in the long run as the preferred source of energy due to its inherent benefits such as peaking power, long life span and generation of employment for the locals.

The CIIrecommends the need to stimulate financing for hydro power projects and implementation of a peaking and differential tariff to provide additional incentive for hydro power generators supporting the grid.

(Inputs from Richa Mishra)

This is part of a series on how India Inc is responding to the monsoon situation

Related Topics
comment COMMENT NOW