A PROJECT REPORT                             OF            Energy and Environment Management                            ON...
ABSTRACTHydro Power Project may be used as one of the option for achieving the energytargets in a developing country like ...
ACKNOWLEDGEMENTThe success of any research study depends upon a number of factors among whichthe proper guidance from the ...
TABLE OF CONTENTS:   Abstract   Acknowledgement   Introduction   History Of Hydropower   Hydropower In India   Hydro...
INTRODUCTIONHydropower is a renewable, non-polluting and environment friendly source ofenergy. It is perhaps the oldest en...
HISTORY OF HYDROPOWERThe first hydroelectric power dam in the world was built in Appleton, Wisconsin in1982. In India, Jam...
Hydropower In IndiaWith the liberalization of the economy, the Government of India has beenencouraging and invited private...
11th Plan (2007 to 2012) and approximately one 100,000 MW in the 12th Plan(2012-2017) is planned. Concurrent investments i...
 HYDROELECTRIC PROJECTS DEVELOPMENT: CHALLENGES   Enhancing the level of energy consumption, particularly in less    dev...
 Low Exploitation of Hydro Potential :      Inspite of hydroelectric power requiring a clean energy generation process,ex...
important reasons for decline in the Hydroelectric proportion in the totalcapacity over the last 30 years are as follows:a...
   Thrust on Hydro Power:In the recent years, the Govt. of India has committed quantum jump, in thefinancial allocation a...
d)     Locations of Hydroelectric projects in India are also in areas which       need substantial support for their econo...
   Advance action for capacity addition – 10 year ahead of    execution   Emphasis on quality of survey & investigations...
development of hydro projects in Central Sector/Joint Ventures,        etc.       The Central Electricity Regulatory Comm...
 Exploitation of vast Hydro Electric potential at faster pace: The government would take steps like execution of all CEA...
 Tariff related issues   Managerial weakness (poor contract management)   Geological surprises (especially in the Himal...
risks. It is, therefore, necessary to expedite survey and investigations with thelatest state of the art technology and pr...
The hydro projects which involve lesser risk element and entail lesser capitalinvestment can be considered for development...
 Major challenges and responses:Development of Hydroelectric projects has thrown up a number of importantchallenges, the ...
Hydroelectric projects particularly where in submergence areas,     the number of project affected people are large.c)   A...
technology. Here again, there are recent examples of making            substantial improvement on both the fronts. Some of...
CONCLUSIONIn order to achieve a growth rate of 7-8 % as envisaged in National policy ofIndia ,it is also required to tap a...
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Energy project report on hydropower

  1. 1. A PROJECT REPORT OF Energy and Environment Management ON Land ResourcesSUBMITTED TO:- SUBMITTED BY:- Ashish PorwalDr. Rudra Rameshwar Anuj Saini Nitin Jain Shubhra Bhugra Sonali Gambhir 1
  2. 2. ABSTRACTHydro Power Project may be used as one of the option for achieving the energytargets in a developing country like India where center or state Governments havelimited financial resources to put in large projects which require long gestationperiod. One additional advantage with the Small Hydro Power. Project is that private partners may get attracted due to low investment andquicker return in comparison to large projects. The last but not least is the most ecofriendliness of small power projects which is a pointof serious concern in case of thermal, or nuclear or sometimes in big Hydro powerprojects depending upon the location of the projects. Small Hydro Power potentialin India is still under-utilized and there is need to tap this potential for optimumutilization of natural resources. In Madhya Pradesh, Small hydro plants are not many , however there isgood scope for developing such plants. Tawa is one of such plants in MP, whichhas been developed as canal head powerhouse on the left bank canal (LBC) ofTawa irrigation project by a private investor. This plant is working in a veryefficient manner addressing both the power and irrigation aspects successfully.This example will attract the private investments in small hydropower sector in thedeveloping countries like India. 2
  3. 3. ACKNOWLEDGEMENTThe success of any research study depends upon a number of factors among whichthe proper guidance from the experts in the industry and a faculty plays animportant role. We would like to express our heartfelt thanks to many people. ThisProject is an effort to contribute towards achieving the desired objectives. In doingso, we have optimized all available resources and made use of some externalresources, the interplay of which, over a period of time, led to the attainment ofthe set goals. We take here a great opportunity to express our sincere and deepsense of gratitude to Dr. Rudra Rameshwar for giving us an opportunity towork on this project. The support & guidance from Sir, was of great help & it wasextremely valuable. We express our sincere thanks to all the people who, directlyor indirectly, contributed in time, energy and knowledge to this effort. 3
  4. 4. TABLE OF CONTENTS:  Abstract  Acknowledgement  Introduction  History Of Hydropower  Hydropower In India  Hydroelectric Projects Development: CHALLENGES  Low Exploitation of Hydro Potential  Power Shortage in India  Declining proportion of Hydro Capacity  Thrust on Hydro Power  Govt. of India Initiative on Hydro Power Development  Current issues/ problems with Hydropower in India  Major challenges and responses  Opportunities in Indian hydroelectric sector  Conclusion 4
  5. 5. INTRODUCTIONHydropower is a renewable, non-polluting and environment friendly source ofenergy. It is perhaps the oldest energy technique known to mankind for conversionof mechanical energy into electrical energy. Hydropower represents use of waterresources towards inflation free energy due to absence of fuel cost. Hydropowercontributes around 22 % of the world electricity supply generated. The totalpotential of small Hydropower of the whole world is 780,000 MW out of which50,000 MW has already been utilized. Small Hydro is also the highest density resources in generation of electricitydue to the reason of being it environment friendly, flexibility in operation andsuitability in giving support in peak time to the local grid. Due to the smallgestation period, small capital investment and quicker return involved, in recentyears it has become the point of attraction for private sector. Fiscal incentiveannounced by the central and state Governments time to time for investment in thissector have further caused private investor to give attention to this sector. Small hydro power plants (SHP) provide maximum benefits in minimumtime. And offers the most fastest economical means to enhance power supply,improve living standards, stimulate industrial growth and enhance agriculture withthe least environmental impact and without heavy transmission losses .Due to lesstransmission losses there is a reduction in distribution cost as well. Its availabilityat the head of the irrigation canals and small streams is also a one of the addedadvantage of it. 5
  6. 6. HISTORY OF HYDROPOWERThe first hydroelectric power dam in the world was built in Appleton, Wisconsin in1982. In India, Jamshed ji Tata built the first hydroelectric power dam in theWestern Ghats of Maharashtra in the early 1900s to supply clean power toBombay’s Cotton and Textile Mills. He took the British Government’s permissionto build dams, namely the Andhra, Sirowata, Valvan and Mulshi hydel dams in theWestern Ghats to generate electricity using high rainfalls in the hills as storageareas. Humans have been harnessing water to perform work for thousands ofyears. The Greeks used water wheels for grinding wheat into flour more than 2,000years ago. Besides grinding flour, the power of the water was used to saw woodand power textile mills and manufacturing plants. For more than a century, thetechnology for using falling water to create hydroelectricity has existed. Theevolution of the modern hydropower turbine began in the mid-1700s when aFrench hydraulic and military engineer, Bernard Forest de Belidor wroteArchitecture Hydraulique. In this four volume work, he described using a vertical-axis versus a horizontal-axis machine. During the 1700s and 1800s, water turbinedevelopment continued. In1880, a brush arc light dynamo driven by a waterturbine was used to provide theatre and storefront lighting in Grand Rapids,Michigan; and in 1881, a brush dynamo connected to a turbine in a flour millprovided street lighting at Niagara Falls, New York. These two projects useddirect-current technology. 6
  7. 7. Hydropower In IndiaWith the liberalization of the economy, the Government of India has beenencouraging and invited private sector for investment in the power sector.Accordingly, a conducive policy environment has been created by modifying theElectricity Act. The new Electricity Act-2003 deals with the laws relating togeneration, transmission, distribution, trading and use of electricity. The Act hasspecific provisions for the promotion of renewable energy including hydropowerand cogeneration. It has been made mandatory that every state regulatorycommission would specify a percentage of electricity to be purchased fromrenewable by a distribution licensee. The National Electricity Policy announced in2005 aims at access of electricity by all households and per capita availability ofelectricity to be increased to 1000 units by 2012. The Policy underlines thatrenewable energy potential needs to be exploited and private sector would beencouraged through suitable promotional measures. Regarding fixing of tariff, thegovernment has announced TariffPolicy in 2006 wherein the State Regulatory Commissions are required to fix tariffin their respective state and also decide about the renewable purchase obligation.The Electricity Act and Tariff Policy are favorably tilted towards increasing powergeneration from renewable. Now, Central Electricity Regulatory Commission hasalso announced the tariff calculation guidelines for renewable technologiesincluding for small hydro projects. The existing power deficit and a rapid growing demand coupled withgovernment commitment to provide access to electricity for all has necessitated alarge scale capacity addition program. A capacity addition of 78,000 MW in the 7
  8. 8. 11th Plan (2007 to 2012) and approximately one 100,000 MW in the 12th Plan(2012-2017) is planned. Concurrent investments in Transmission and Distributionare also going on. Such a gigantic task is strongly supported and complemented bythe private sector.These changes facilitated the removals of barriers to investment, improved thefunctioning of the system and resulted in additional generation of power much inexcess of that achieved in the earlier plans. Ministry of New & Renewable Energy(MNRE) Government of India is the nodal ministry for small hydropowerdevelopment in India. 8
  9. 9.  HYDROELECTRIC PROJECTS DEVELOPMENT: CHALLENGES Enhancing the level of energy consumption, particularly in less developed and developing countries, is a global challenge. 20% of world population living in industrialized countries consume 60% of energy and remaining 80% of population have to manage within 40% of total energy. This has obviously resulted in wide disparities between the standard of living and quality of life of high energy consuming countries on the one hand and those who do not have the opportunities of adequate access to energy on the other. It is precisely for this reason that development of different sources of energy and increase in its consumption has become a priority agenda of all the developing countries. Various countries have adopted their own strategies to provide energy to their people. In the context of electric power, as an important form of energy, the thermal and hydroelectric power on a global basis, have occupied the largest proportion. Within the thermal group, coal based power stations occupy dominant position. However, this varies from country to country. The Gas based combined cycle power stations in number of countries occupy a significant proportion. Similarly, nuclear power stations have also increased and have been adding large amount of capacity to the thermal group. During last 30 years, Hydroelectric power generation has, as a matter of fact, reduced from 21% in 1973 to less than 17% in 2000. During the same period, coal based generation marginally increased from 38% to 39%, gas increased substantially from 12% to 17.4% and nuclear witnessed a very steep rise from 3.3% to 16.9%. Obviously concerted efforts are required to develop Hydroelectric capacities. 9
  10. 10.  Low Exploitation of Hydro Potential : Inspite of hydroelectric power requiring a clean energy generation process,exploitation of Hydroelectric potential in various countries has been rather on alower side.:  Power Shortage in India:In India, though over 100,000 MW of capacity has been added in last 50years, there is a huge gap between the demand and supply of power. Whilein the last few years it has marginally reduced, the peaking shortagecontinues to be over 12% to 13% and the average energy shortage at about8.8%. Indian power system has an installed capacity of 108,207 MW in May2003, with hydroelectric accounting for 25%.  Declining proportion of Hydro Capacity:In the last 30 years, the proportion of hydroelectric capacity in the Indianpower system has considerably reduced. It has dropped from about 46% in1970 to 40% in 1980, 29% in 1990 and now 25% in 2003. In spite of theHydroelectric potential, which is now estimated to be of the order of 150,000MW, the exploitation has been of the order of 27,000 MW. Some of the 10
  11. 11. important reasons for decline in the Hydroelectric proportion in the totalcapacity over the last 30 years are as follows:a) Indian power supply industry has always experienced the situation of shortages both in energy and peaking requirements. To tide over the shortage in shortest possible time, more dependence was placed on sources of power generation with shorter gestation period. Obviously this short-term approach rather than a long-term perspective led to this problem.b) With abundant coal reserves in the country, large capacity additions through coal based pithead power stations during the eighties and nineties increased the thermal proportion.c) Emergence of gas based combined cycle power stations based on indigenous natural gas with gestation period of 2-2 ½ years also received priority in response to the anxiety to create capacity addition in shortest possible time.d) Nuclear power stations have also emerged as reliable modes of thermal generation.e) In spite of best efforts at the stage of planning and formulating projects in the hydro segment, a number of large projects got into long gestation period of construction on account of various reasons, namely environmental issues, rehabilitation & resettlement (R&R) problems, gap between investigations and field realities, etc. We do have a number of successful stories on the hydroelectric projects but we also have large projects which have taken several years to get completed. 11
  12. 12.  Thrust on Hydro Power:In the recent years, the Govt. of India has committed quantum jump, in thefinancial allocation and also by way of other supports so that Hydroelectricprojects not only get right priorities but also contribute in an increased way tothe future capacity addition programs of the country. Accordingly, in the 10thFive-Year Plan (year 2002-2007), the target for hydroelectric capacity hasbeen placed 14,393 MW, which is more than the total installed capacity(13,666 MW) created in the last 20 years. The thrust on hydroelectricdevelopment is based on the following considerations:a) Hydroelectric involves a clean process of power generation. Once the projects are constructed, there is no pollution ramification unlike many other power generation technologies and processes.b) Since it does not suffer from the limitation of inflation on account of fuel consumption, in the long run, it is the most cost-effective option for power supply. In Indian context, where more than 45% of Indian population has yet to have access to electricity at an affordable price, this is an important consideration.c) Indian power supply system has a peculiar limitation of huge variation between peak and off peak requirements. Management of peak load in an effective manner could be conveniently handled through availability of hydroelectric support. The system at present does suffer from large frequency variations. Better hydro support could address this problem better. 12
  13. 13. d) Locations of Hydroelectric projects in India are also in areas which need substantial support for their economic development. These areas are North-east, Uttaranchal, Himachal Pradesh & Jammu & Kashmir where more than 80% of potential exists. Developing projects in these areas will spur economic activities and will lead to overall economic development.e) In an integrated Hydroelectric project – there are many such projects – the schemes involve not only supply of electricity but also provision of drinking water and irrigation. These are important issues in many parts of India. Hydroelectric projects, in many cases, do have the ability to mitigate these problems.f) Flood control is also an issue and quite often a challenge. Integrated hydroelectric projects could adequately address this concern.  Govt. of India Initiative on Hydro Power Development:The main features of the Government of India policy on hydro powerdevelopment are as follows:  Additional budgetary financial support for ongoing and new hydro projects under Central Public Sector Undertakings.  Basin-wise development of hydro potential – comprehensive Ranking studies for 399 schemes. 13
  14. 14.  Advance action for capacity addition – 10 year ahead of execution Emphasis on quality of survey & investigations Resolution of inter-state issues on sharing of water and power. Renovation, Modernization & Uprating of existing hydro stations Promoting small and mini hydel projects – 25 MW and below now fall into category of “non-conventional” qualifying for benefits. Simplified procedures for clearances by Central Electricity Authority; Electricity Act 2003 further liberalizes this. Rationalization of hydro tariff by allowing premium on sale rate during peak period Realistic estimates of completion cost considering new development on geological front during execution. Promoting hydel projects in joint venture Selection of developer through MOU/Bidding route Govt. support for land acquisition, resettlement and rehabilitation, catchment area development, etc. Some of the measures announced by; Govt. of India have already been introduced which include simplified procedures for transfer of techno-economic clearances, streamlining of clearance process and introduction of three-stage clearance approach for 14
  15. 15. development of hydro projects in Central Sector/Joint Ventures, etc.  The Central Electricity Regulatory Commission has approved 5% hydro development surcharge on annual fixed charges for central hydro power generation. National policy on Hydropower in India: With the aim to accelerate the development of Hydropower, the Ministry of Power (MoP), Government of India (GoI) introduced the National Policy on Hydropower Development in 1998. The policy document has identified and responded to the major issues and barriers. With Central, State and Private hydropower projects contributing 3455 MW, 5810 and 550 MW respectively, the GoI aims to reach the total capacity of 9815 MW during the ninth plan. (The XI th Plan aims capacity addition of 18781 MW in the hydropower sector) 15
  16. 16.  Exploitation of vast Hydro Electric potential at faster pace: The government would take steps like execution of all CEA cleared projects, update and clear pending DPRs, survey new green field sites and resolve inter-state disputes. Promotion of small and mini hydro projects Small and mini hydro projects are especially viable for remote and hilly areas where extension of grid system is comparatively uneconomical Strengthening the role of PSUs and SEBs in taking up new hydro projects The government aims at enlarging Public sector’s involvement in mega hydro projects and multi-purpose projects involving inter-state issues, projects for peaking power and those with rehabilitation and resettlement issues. Increasing private investments for development of hydropower in India The public sector would be supported by greater private investment through IPPs and joint ventures. Private sector participation is considered vital for large scale development of hydropower. Through these measures, GoI aims to realize 100% hydropower potential of the country by year 2025-26. These objectives have been developed in response to the following constraints: Technical, including difficult investigation, inadequacies in tunneling methods) Financial (deficiencies in providing long term finance) 16
  17. 17.  Tariff related issues  Managerial weakness (poor contract management)  Geological surprises (especially in the Himalayan region where underground tunneling is required)  Inaccessibility of the area  Problems due to delay in land acquisition and resettlement of project affected families  Law and order problem in militant infested areas.  Current issues/ problems with Hydropower in India:The Government of India set up a National Committee in 1987 and aStanding Committee in 1998 to oversee the progress on hydropowerdevelopment.This section derives largely from the report submitted by the StandingCommittee on Energy (2005-06) - Hydro power: a Critique which discussesthe actions taken by the Government on the recommendations made by theCommittee in the forty second report on hydro power in India.  Technical issues:To expedite early execution of hydro projects, bankable Detailed ProjectReport (DPR) based on detailed survey should be prepared to avoidgeological uncertainties. Survey & investigation and analysis of geological,geo-morphological, geo-electrical, hydrological data etc. should be done atthe time of preparation of a DPR itself in order to minimize the impact of 17
  18. 18. risks. It is, therefore, necessary to expedite survey and investigations with thelatest state of the art technology and prepare a shelf of projects for execution.The quality of DPRs should be of high standard which should infuseconfidence in the national/international developers to take up the execution ofprojects without loosing time in rechecks etc at the same time, contractmonitoring as distinct from project monitoring should be emphasized andland acquisition and infrastructure development be settled and completedbefore the start of the project.Renovation and Modernization (R&M) has been recognized world over as awell proven cost effective technique for improving theperformance/efficiency of older power plants. The useful life of the plantscan be increased by R&M and the plants yield benefits in the shortestpossible time at a reasonable cost. GoI in its policy on hydropowerdevelopment, 1998 has laid stress on need for renovation and modernizationof hydro power plants. Contingency Plan for Hydro Projects affected byNatural Calamities need to be prepared and made public. National Policy onRehabilitation and Resettlement (R&R) should be finalized and made public.  Infrastructural issues:There is a need to setup single window clearance for hydro projects. Variousauthorities such as the Central Electricity Authority (CEA), the Ministry ofFinance, Ministry of Environment and Forests, etc. are involved in theappraisal of a hydro power project before it is certified for development. Itwill be desirable to have a single window dispensation/authority so that aproject is cleared without many hassles. 18
  19. 19. The hydro projects which involve lesser risk element and entail lesser capitalinvestment can be considered for development in the Private Sector. PublicSector can take up (a) Multi purpose Projects (b) Projects Involving inter-State issues and in inter-State river systems, (c) Projects involvingcooperation with neighboring countries and (d) Projects for complementarypeaking with regional benefits (e) Projects in the North-Eastern Region etc.  Financial issues:There is also a need to off-load indirect cost components on hydro project.Many hydro projects are located in troubled areas and infested by militancyand terrorist activities. There is an urgent need to amend the present policy ofthe Government in regard to charging the entire security expenditure fromconcept and until commissioning - on the project cost. However, therecurring expenditure incurred on security, once a project goes on streamcould to be charged on the project developer.The cost of access roads should not be included in the project cost, asdevelopment of hydro projects triggers economic and commercial activitiesaround the project site and results in economic benefit to the State. Inclusionof R&R, flood moderation costs, along with the provision of 12% free powerto the State in the capital cost of the project needed reconsideration as theprovision did not apply to thermal power projects. 19
  20. 20.  Major challenges and responses:Development of Hydroelectric projects has thrown up a number of importantchallenges, the world over and particularly in Indian context. Over a periodof time, experiences have been acquired and India is responding to thesechallenges in the following manner. a) Impact on Environment: Hydroelectric projects do create environmental issues emanating from sub-emergence of large areas also involving forest. The Govt. of India has a comprehensive legislation on environmental issues and based on this legislation, there are well laid down principles and guidelines. Environment Impact Assessment studies when properly carried out throw up the tasks to be undertaken by the project development agencies. Ministry of Environment & Forest is working on a plan to create Forest Bank which would entail creation of huge afforestation with funding from project development agencies in advance so that this issue could be adequately responded. The mechanism of compensatory afforestation through the Forest Bank will enable quicker clearances of projects. b) Rehabilitation & Resettlement (R&R) of Project Affected People (PAP) is another major issue affecting the smooth execution of 20
  21. 21. Hydroelectric projects particularly where in submergence areas, the number of project affected people are large.c) Another issue of concern is in relation to safety of dams. Here again, experiences from some of the very large projects of the country have led to considerable amount of knowledge base and it is expected that in future projects, studies and findings on dam safety could provide much higher degree of confidence. Some of the Indian institutions have equipped themselves both with hardware and software to properly address these concerns. Where required, project development agencies do depend on expertise available anywhere in the world for in depth studies and guidance.d) In view of complexity in development of Hydroelectric projects, particularly large ones, emanating from dam height, submergence, ramification of submergence, dam safety, drinking water schemes, irrigation, infrastructure etc., the process of clearances obviously gets linked with multiple agencies and authorities. Short cuts could create problems.e) Construction time is another area of concern, which needs to be compressed. Large projects have taken inordinately long time. There are two major aspects which could make a difference – one is relating to construction management techniques starting from planning to monitoring and another relate to construction 21
  22. 22. technology. Here again, there are recent examples of making substantial improvement on both the fronts. Some of the projects which have been sanctioned in the recent months are being targeted to be completed within 4-5 years. f) Communication with press, media and people at large to reduce the communication gaps on merits of hydro-projects and on migratory measures is another area of challenge which is being addressed. This also needs to be taken up appropriately at global level.  Opportunities in Indian hydroelectric sector:About 14,000 MW of additional capacity in the period 2002-2007 and50,000 MW of additional capacity during the period 2002-2017 throw openenormous opportunities for national and international agencies. Theopportunities fall in the following categories. a) Preparation of DPR for the 162 schemes with over 50,000 MW capacity b) EPC contracts for development of many of these projects c) Package wise contracts in a large number of projects. d) Investment as equity holder and project developer e) J.V. with Indian Companies for developing projects 22
  23. 23. CONCLUSIONIn order to achieve a growth rate of 7-8 % as envisaged in National policy ofIndia ,it is also required to tap all the small Hydro Power potential of thecountry. The encouraging performance shown by the Tawa project itself setan example for inviting private investment in the small Hydro Power Projectsector, especially in view of the fact that Large Hydro power projects involvehuge capital investment and long gestation period which private partners donot afford to bear. The utilization of small Hydro Power Potential is especially required inall states where the utilized potential is very low like in MP and thereforeoptimum utilization of the same may set up an stepping up stone forachieving self sufficiency in power sector in country. 23
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