Government of India

Ministry of Non-Conventional Energy Sources

Small Hydro Power

Dr Manmohan Singh
Prime Minister of India

Smt. Sonia Gandhi

Chairperson, National Advisory Council

Energy is an important input for

economic development. Since exhaustible energy sources in the country are limited, there is an urgent need to focus attention on development of renewable energy sources and use of energy efficient technologies. The exploitation and development of various forms of energy and making energy available at affordable rates is one of our major thrust areas.

Today India is one of the few

leading countries in the development and utilization of renewable energy. The country is blessed with various sources of non-conventional energy and I hope the efforts of Ministry of Non-Conventional Energy Sources will promote viable technologies that can reach the benefits of such sources to the poorest people in the far-flung regions of the country.

Renewable Energy in India

nergy is a basic requirement for economic development. Every sector of Indian economy agriculture, industry, t r a n s p o r t , commercial, and domestic needs inputs of energy. The economic development plans implemented since independence have necessarily required increasing amounts of energy. As a result, consumption of energy in all forms has been steadily rising all over the country. This growing consumption of energy has also resulted in the country becoming increasingly dependent on fossil fuels such as coal and oil and gas. Rising prices of oil and gas and potential shortages in future lead to concerns about the security of energy supply needed to sustain our economic growth. Increased use of fossil fuels also causes environmental problems both locally and globally. Against this background, the country urgently needs to develop a sustainable path of energy development. Promotion of energy conservation and increased use of renewable energy sources are the twin planks of a sustainable energy supply. Fortunately, India is blessed with a variety of renewable energy sources, the main ones being biomass, biogas, the sun, wind, and small hydro power. (Large hydro power is also renewable in nature, but has been utilized all over the world for many decades, and is generally not included in the term new and renewable sources of energy.) Municipal and industrial wastes can also be useful sources of energy, but are basically different forms of biomass.

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R ENEWABLE E NERGY

IN I NDIA

Advantages of renewable energy are that it is perennial available locally and does not need elaborate arrangements for transport usually modular in nature, i.e. small-scale units and systems can be almost as economical as large-scale ones environment-friendly well suited for decentralized applications and use in remote areas. The Ministry of Non-Conventional Energy Sources has been implementing comprehensive programmes for the development and utilization of various renewable energy sources in the country. As a result of efforts made during the past quarter century, a number of technologies and devices have been developed and have become commercially available. These include biogas plants, improved wood stoves, solar water heaters, solar cookers, solar lanterns, street lights, pumps, wind electric generators, water-pumping wind mills, biomass gasifiers, and small hydro-electric generators. Energy technologies for the future such as hydrogen, fuel cells, and bio-fuels are being actively developed. India is implementing one of the worlds largest programmes in renewable energy. The country ranks second in the world in biogas utilization and fifth in wind power and photovoltaic production. Renewable sources already contribute to about 5% of the total power generating capacity in the countr y. The major renewable energy sources and devices in use in India are listed in Table 1 along with their potential and present status in terms of the number of installations or total capacity.

R ENEWABLE E NERG Y

IN I NDIA

Table 1 Renewable energy in India at a glance

Estimated potential 45 000 MW 16 000 MW 3500 MW 15 000 MW 1700 MW 1000 MW 12 million 120 million 140 million m of collector area
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Source/System Wind power Biomass power Bagasse cogeneration Small hydro (up to 25 MW) Waste to energy P Municipal solid waste P Industrial waste Family-size biogas plants Improved chulhas Solar street lighting systems Home lighting systems Solar lanterns Solar photovoltaic power plants Solar water heating systems Box-type solar cookers Solar photovoltaic pumps Wind pumps Biomass gasifiers
* as on 31 March 2005

Cumulative installed capacity / number* 3595 MW 302.53 MW 447.00 MW 1705.63 MW 17 MW 29.50 MW 3.71 million 35.20 million 54 795 342 607 560 295 1566 kWp 1 million m 2 of collector area 575 000 6818 1087 66.35 MW

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N ATION AL E LECTRICIT Y P OLICY 2005

National Electricity Policy 2005

The National Electricity Policy aims at achieving the following objectives. 1 Access to Electricity available for all households in the next five years. 2 Availability of Power demand to be fully met by 2012. Energy and peaking shortages to be overcome and spinning reserve to be available. 3 Supply of reliable and quality power of specified standards in an efficient manner and at reasonable rates. 4 Per capita availability of electricity to be increased to over 1000 units by 2012. 5 Minimum lifeline consumption of 1 unit/household/day as a merit good by 2012. 6 Financial turnaround and commercial viability of electricity sector. 7 Protection of consumers interests.

The Electricity Act 2003

The Electricity Act contains the following provisions pertaining to nonconventional energy sources.
Sections 3(1) and 3(2)

Under Sections 3(1) and 3(2), it has been stated that the Central Government shall, from time to time, prepare and publish the National Electricity Policy and Tariff Policy, in consultation with the state governments and authority for development of the power system based on optimal utilization of resources such as coal, natural gas, nuclear substances or material, hydro and renewable sources of energy.

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T HE E LECTRICIT Y A C T 2003

Section 4

Section 4 states that the Central Government shall, after consultation with the state governments, prepare and notify a national policy, permitting stand-alone systems (including those based on renewable sources of energy and other non-conventional sources of energy) for rural areas.
Section 61

Section 61, 61(h) and 61(i) state that the appropriate commission shall, subject to the provision of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely, the promotion of cogeneration and generation of electricity from renewable sources of energy; and the National Electricity Policy and Tariff Policy.
Section 86(1)

Section 86(1) and 86(1)(e) state that the state commissions shall discharge the following functions, namely, promote cogeneration and generation of electricity from renewable sources of energy by providing, suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution license.

Small Hydro Power

Introduction
ydro power is the largest renewable energy resource being used for the generation of electricity. In India, hydro power projects with a station capacity of up to 25 megawatt (MW) each fall under the category of small hydro power (SHP). India has an estimated SHP potential of about 15 000 MW, of which about 11% has been tapped so far. The aim is to install 2% additional power generation capacity from SHP during the Tenth and Eleventh Plan periods. This capacity addition is expected to come mainly from private investment.

Technology and Definitions

Hydro power is obtained from the potential and kinetic energy of water flowing from a height. The energy contained in the water is converted into electricity by using a turbine coupled to a generator. The hydro power potential of a site is dependent on the discharge and head of water. It is estimated by the following equation. P (power in kW) = Q H 9.81 , where Q = discharge (rate of flow) in m3/s; H = head (height) in metres; and = overall power generating system efficiency.

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SHP projects can be set up on rivers, canals or at dams. Essentially, an SHP project has the components listed below. Diversion weir/barrage Power channel Desalting devices Fore bay tank/balancing reservoir Penstock By-pass arrangements/spillways Powerhouse building Equipment Power evacuation arrangements

Typical arrangement of an SHP station on a river

Classification of SHP projects

SHP projects are classified based on head as follows. Ultra low head : below 3 metres Low head : above 3 and up to 40 metres Medium/high head : above 40 metres
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Typical arrangement of an SHP station on a canal SHP projects are classified based on capacity as follows. Micro hydro Mini hydro Small hydro : up to 100 kW : 1011000 kW (i.e. 1 MW) : above 1 MW up to 25 MW

Advantages of SHP Projects

SHP projects can provide electricity to meet distributed energy requirements; currently, such requirements are met from single sources of power. SHP is increasingly becoming economical; besides, it is relatively benign in environmental effects. A few major advantages of SHP projects are listed below. Flexibility of installation and operation in a distributed mode Standard indigenous technologies and manufacturing base available, which require only minor adaptation to specific site conditions
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Compatible with use of water for other purposes such as irrigation and drinking water Environment-friendly because it causes negligible or no submergence; minimal deforestation; and minimal impact on flora, fauna, and biodiversity

Costs
While SHP projects on rivers involve higher costs of civil works than those on canals, the cost of equipment for canal-based projects is relatively higher. SHP projects generally cost between Rs 5 crores and Rs 7 crores per MW, depending upon the location and site topography. SHP projects generally have a pay-back period of 57 years depending upon the capacity utilization factor, which, in turn, depends on the factors mentioned earlier and on grid availability.

Small Hydro Power Programme

The Ministry of Non-Conventional Energy Sources (MNES) supports SHP project development throughout the country. So far, 523 SHP projects with an aggregate installed capacity of 1705 MW have been installed. Besides these, 205 SHP projects with an aggregate capacity of 479 MW are under implementation. With a capacity addition, on an average, of 100 MW per year and gradual decrease in gestation periods and capital costs, the SHP sector is becoming increasingly competitive with other alternatives.

SHP Resource Assessment

A database has been created for potential SHP sites through information gathering from various sources, including state governments. Zonal plans for 13 states of the Himalayan and sub10

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Himalayan region have already been prepared. Simulation models have been developed that take into account regional flow duration curves, geological and seismological data, vegetation cover, etc., and use GIS (geographic information system) technology. The database of SHP projects includes 4233 potential sites with an aggregate capacity of 10 324 MW. It is proposed to further strengthen the database by including new sites. A scheme is under implementation to provide a subsidy of up to Rs 30 lakhs to states for identification of new potential sites, and preparation of a perspective plan for SHP development. Potential SHP sites by state/union territory are shown in Table 1.
Table 1 Identified small hydel sites up to 25 MW capacity
State/Union Territory Andaman and Nicobar Islands Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Number of identified sites 6 286 492 46 92 47 3 290 22 323 201 89 230 198 85 234 96 98 88 86 Total capacity (MW) 6.40 254.63 1059.03 118.00 194.02 57.90 2.60 156.83 30.05 1624.78 1207.27 170.05 652.61 466.85 336.33 599.47 105.63 181.50 190.32 181.39 Continued...

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Table 1 Identified small hydel sites up to 25 MW capacity (Continued...)

State/Union Territory Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttaranchal Uttar Pradesh West Bengal Total Number of identified sites 161 78 49 68 147 8 354 211 145 4233 Total capacity (MW) 156.76 65.26 27.26 202.75 338.92 9.85 1478.24 267.06 182.62 10324.37

SHP Promotional Schemes

The MNES supports SHP development, both in the government and private sectors. Apart from financial support to new SHP projects, subsidy is provided for the renovation and modernization (R&M) of existing SHP stations and government projects that have been languishing for want of funds. A special incentive package has been developed for the promotion of the SHP programme in the NorthEastern states, Jammu and Kashmir, Himachal Pradesh, and Uttaranchal. Key performance parameters such as cost of the project, capacity utilization factor, and cost of electricity generation are the guiding factors for grant of subsidy. Emphasis is also laid on quality of the equipment through insistence upon standards and specifications that match international levels. To improve the economic viability of SHP projects and to give impetus to the programme, the MNES provides a one-time subsidy for commercial SHP projects. The subsidy is utilized by the promoter towards repayment of the term loan availed from a financial institution. The subsidy is released after the project performance parameters are attained as laid down in the MNES scheme. The subsidy scheme covers
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projects of capacity up to 25 MW each. The eligibility conditions and subsidy levels are given in Table 2.
Table 2 Eligibility criteria and levels of subsidy for SHP projects
Special category states (north-eastern region, Sikkim, Jammu and Kashmir, Himachal Pradesh, and Uttaranchal) Other states Rs 7 crores/MW Rs 2.503.30/unit Canal based: 30% Others: 45% All projects to conform to relevant international/national codes of practices and standards Rs 2.25 crores (C MW)0.646 Rs 1.5 crores (C MW)0.646 Rs 5 crores/MW

Eligibility Maximum permissible installed cost Cost of electricity generation Minimum permissible capacity utilization factor Standards

Subsidy

Note C stands for capacity of the project

Quality of Project
The quality of equipment utilized is considered important for the reliability and attainment of project performance parameters. SHP project promoters are required to follow stipulated standards for receiving subsidy for a project. SHP equipment must conform to the standards laid down by the International Electrotechnical Commission (IEC) and the Bureau of Indian Standards (BIS) (Table 3).
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Table 3 Equipment standards laid down by the IEC and BIS

Equipment Turbines and generator (rotating electrical machines) Standard IEC 60034-1: 1983 IEC 61366-1: 1998 IEC 61116-1992 IS: 4722-2001 IS 12800 (part 3) 1991 IEC 60041: 1991 IEC 60308 IS 3156 1992 IS 2705 1992 IS 2026 1983 IS 7326 1902

Field acceptance test for hydraulic performance of turbine Governing system for hydraulic turbines Transformers

Inlet valves for hydro power stations and systems

SHP projects are also required to be tested by the Alternate Hydro Energy Center, Indian Institute of Technology, Roorkee, to check whether the projects have attained performance parameters during performance trials; whether the equipment used meets the stipulated standards; and to verify project cost, capacity utilization, and cost of electricity generation.

Sale of Electricity and Financing

Fifteen states have announced policies to attract private sector entrepreneurs to set up SHP projects. These policies are summarized in Table 4. The state electricity regulatory commissions are now determining tariffs by taking into account the submissions of all stakeholders including the developers and the MNES. For commercial projects, these states have offered sites with a total potential of over 2300 MW. A number of leading financial institutions and banks including Indian Renewable Energy Development Agency (IREDA), Power Finance Corporation, Rural Electrification Corporation, IDBI, IL&FC, and commercial banks have started financing SHP projects.
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Table 4 Policies in states for commercial SHP projects

State Andhra Pradesh Haryana Wheeling 2% of energy generated 2% of energy generated Banking 2%; 812 months Allowed Allowed with additional charges Third party sale Allowed but Not < HTT Allowed Not allowed Buy-back by SEB Annual escalation

Rs 2.69/unit (2004/05) Rs 2.25/unit 5% (1994/95) Rs 2.50/unit

Himachal Pradesh 2% of energy generated Jammu and Kashmir

10% now, to Allowed for be decided by 2 months SERC. No charges for sale to PDD or local grid 20%25%, wheeling for one year 15% of energy generated 2% of energy generated Allowed with no charges for first 3 years and 1% after that

Allowed Negotiable HT consumers

Karnataka

Allowed

Rs 2.90/unit 2%

Kerala Madhya Pradesh Maharashtra

Not allowed Not allowed Allowed

Not allowed Allowed Allowed

On case basis Rs 2.25/Unit Rs 2.25/unit 5% (19992000)

Orissa

Up to 100 kW: 1 year 2% of energy charge 100200 kW: 3% of energy charge 2 MW to 15 MW: 2% of energy charge

Allowed

At mutually agreed rate

Continued...

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Table 4 Policies in states for commercial SHP projects (Continued...)

State Punjab Rajasthan Tamil Nadu Uttaranchal Wheeling 2% of energy generated 2% of energy generated 5% of energy generated To be determined by ERCU; 10% free if sold to UPCL or rural distribution 2% of energy generated 2% of energy generated Banking 1 year Allowed Not allowed Third party sale Allowed Allowed Not allowed Buy-back by SEB Annual escalation

Rs 2.73/unit 5% (1998/99) Rs 2.75/unit 5% (1998/99) At mutually agreed rate

2 months Allowed to HT Mutually monetized at consumer, negotiated average rural areas, pooled price outside state

Uttar Pradesh West Bengal

1 year 6 months

Allowed Not allowed

Rs 2.25/unit On case basis Case basis

SERC state electricity regulatory commission; PDD Power Development Department; SEB state electricity board; MW megawatt; HT high tension; kW kilowatt

Water Mills
Water mills, also known as gharats in the northern part of the country, have traditionally been used to convert the energy of water to useful mechanical energy. In the Himalayan region, about 150 000 water mills are being used for mechanical applications such as grain grinding and oil extraction. In general, water mills have low conversion efficiency. Improved water mills have been developed for mechanical applications as well as electricity generation. The MNES scheme for the development of water mills is being operated through local organizations such as Water Mills Associations, cooperative societies, registered NGOs, local bodies, and state nodal agencies. Under the scheme, subsidy up to 75%
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of the actual cost is being provided, limited to a ceiling of Rs 30 000 in mechanical mode and Rs 1 lakh in electrical/electrical plus mechanical mode. Uttaranchal has set up over 150 such water mills in its remote and isolated areas. Nagaland too has started laying emphasis on the deployment of water mills for village-level electricity generation.

Manufacturing Base for SHP

India has a manufacturing base for all types and sizes of SHP equipment. The technology being employed is at par with international levels. There are currently 11 SHP equipment manufacturers in the country, as listed below.

Alstom Power India Ltd Chandiwala Estate Maa Anandamayee Ashram Marg Kalkaji, New Delhi 110 019 Tel. 011-2682 6100/150/152 (GM-MET) Fax 011-2682 6180/166/161 E-mail gurvinder.singh@power. alstom.com Bharat Heavy Electricals Ltd Piplani, Bhopal 462 022 Central Marketing Group (NCE&DPG) Industrial Sector Integrated Office Complex Lodi Road New Delhi 110 003 Tel. 011-243 6779, 5179 3247 Boving Fouress Pvt. Ltd Plot No. 7, KIADB, Industrial Area Bangalore 562 114 Tel. 080-2797 1641 Fax 080-2797 1455 Gram FOURESSCOP E-mail foursbov@vsnl.com

VA Tech. Escher Wyss Flovel Ltd 13/1 Mathura Road Faridabad 121 003 Tel 0129-227 4319 Fax 0129-227 4320 Gram FLOVIN E-mail sulzer@del3.vsnl.net.in Jyoti Ltd Nanubhai Amin Marg Industrial Area PO Chemical Industries Vadodara 390 003 Tel. 0265-238 0633, 238 0627, 238 1402 At Delhi 011-2684 3213, 2643 4249 Fax 0265-235 0538, 238 1871 Gram JYOTIPUMPS E-mail jyotidelhi@vsnl.net Steel Industries Kerala Ltd Silk Nagar, Athani PO Thrissur (Kerala) - 680 771 Tel. 0487-220 142123 Fax 0487-220 1331 E-mail silk@md3.vsnl.net.in

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The Triveni Engg. Works Ltd 8th Floor, Express Trade Tower Sector 16A NOIDA 201 301 Tel. 0120-530 8000 Fax 0120-530 8100 Gram TEWPEDCO E-mail rebg.mkt@projects. trivenigroup.com Kirloskar Bros Ltd Hydel Projects Group Chintan 408/15, Mukund Nagar Pune 411 037 Tel. 020-2444 4444 Fax 020-2427 0879, 2444 0156 E-mail dineshkarna@pnr.kbl.co.in

Technic Ganz Machinery India Pvt. Ltd D-10/3, Okhla Industrial Area, Phase I New Delhi 110 020 Tel. 011-2681 6049, 2681 8543 Fax 011-2681 6324, 2371 2032 E-mail technipgroup@vsnl.com HPP Energy (India) Pvt. Ltd L-71 / A-B F.F., Malviya Nagar New Delhi 110 017 Tel. 2667 5120 Fax 2667 5144 E-mail hpenergy@nde.vsnl.net.in Ushamil Private Ltd A-292, Mahipalpur Extn N.H. 8 New Delhi 110 037 Tel. 011-2678 2183, 2678 3740 Fax 011-2678 1483, 2678 3278 E-mail flowmore@del2.vsnl.net.in

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Rajiv Gandhi Akshay Urja Diwas

On 20 August 2004 the 60th Birth Anniversary of our Late Prime Minister Mr Rajiv Gandhi the Ministry organized the Rajiv Gandhi Akshay Urja Diwas. Initiated by the Honble Minister of State (NonConventional Energy Sources), Mr V Muttemwar, the occasion saw the release of a commemorative stamp by the Honble Prime Minister, Dr Manmohan Singh, at a function attended by Smt. Sonia Gandhi, Chairperson, United Progressive Alliance (UPA), Members of the Union Cabinet, Members of Parliament, Chief Ministers, Foreign Dignitaries, Administrators, Scientists, and students among others. The day was also appropriate to advocate renewable energy, since Mr Rajiv Gandhi was a keen enthusiast of scientific advances that would enable India to leap into the 21st century. Thus, a human chain of nearly 12 000 school children was formed in the National Capital to promote a renewable future. In the rest of the country too, functions such as rallies and human chains were organized. In addition, competitions such as essay writing, painting, quizzes, and debates were held, all of which covered different aspects of renewable energy from biogas to biomass to solar, hydro, and wind power. The essence of these public activities was to generate mass awareness and disseminate information about the advances made in renewable energy technologies, and with the ultimate objective of achieving Akshay urja se desh vikas Gaon gaon bijlee, ghar ghar prakash. The success of the Rajiv Gandhi Akshay Urja Diwas has encouraged the Ministry to make it an annual affair, to be celebrated on 20 August every year.
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For more information, please contact Ministry of Non-Conventional Energy Sources Block No. 14, CGO Complex Lodi Road, New Delhi 110 003 Tel. +91 11 2436 0707 +91 11 2436 0404 Fax +91 11 2436 1298

Disclaimer Every effort has been made to provide correct information in this booklet. However, the Ministry of Non-Conventional Energy Sources (MNES) does not assume any responsibility for the accuracy of the facts and figures mentioned here, nor for any consequences arising out of use of any information contained in this publication.

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Shri Vilas Muttemwar

Minister of State (Independent Charge) Non-Conventional Energy Sources, Government of India New Delhi 110 003

The promotion of renewable energy sources in the

country requires widespread publicity and greater awareness of the potential of these energy sources and the products available. The Ministry of NonConventional Energy Sources is expanding several of its programmes so that these sources can contribute to sustainable development of the nation. The Ministry will work towards reducing the costs of renewable energy products and making them easily available to the people. The motto of the Ministry is Akshay urja se desh vikas and the ultimate goal is Gaon gaon bijli, ghar ghar prakash.

Small Hydro Power

Booklets in this Series

1 Biogas 2 Biomass 3 Solar Heat 4 Solar Electricity 5 Energy Recover y from Wastes 6 Wind Energy 7 Small Hydro Power 8 Hydrogen Energy 9 Solar Energy Centre 10 Centre for Wind Energy Technology 11 Indian Renewable Energy Development Agency Ltd 12 Information and Public Awareness

Ministry of Non-Conventional Energy Sources, Government of India Block No. 14, CGO Complex, Lodi Road, New Delhi 110 003 Web site: www.mnes.nic.in