Transcript No Slide Title

Hydro Development The Challenges and Response
R.V. SHAHI
SECRETARY
MINISTRY OF POWER
GOVERNMENT OF INDIA
ICOLD Conference
Montreal (Canada)
June 20, 2003
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Share in generation - Global scenario
1973
Gas
12.1%
Nuclear
3.3%
Oil
24.7%
2000
Hydro
21.0%
Oil
7.9%
Nuclear
16.9%
Gas
17.4%
Others **
0.7%
Coal
38.2%
6,121 TWh
Hydro
17.1%
Coal
39.1%
Others **
1.6%
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%
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Hydro Potential - Global Scenario
310000
Only 18% of hydro potential utilised in India
Potential (MW)
Installed capacity (MW)
Norway
Canada
Brazil
18%
China
18%
27010
52427
65678
27360
47000
31%
150000
41%
56000
160000
58%
170000
% Potential utilized
India
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Power Supply position in India
Power Shortages (%)
20.5
Peak Shortages (%)
18.0
13.0
11.5
7.3
1992-93
1996-97
12.2
7.8
8.8
2000-01
2002-03
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Hydro development : Rationale
54%
60%
46%
40%
'70
'80
Fuel
Mix
71%
75%
29%
25%
'90
2003
Years
Hydro
Thermal + Others
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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…...
6
Thrust on hydro
 Despite
best
efforts
during
planning
Contd…...
stage,
the
hydro
development constrained due to longer gestation construction
period
•
environmental constraints
•
rehabilitation & resettlement problems
•
inadequate investigations :
-
geological / hydrological surprises
Contd…...
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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
To add during five years (2002-07)
- 13,666 MW
- 14,393 MW
Contd…...
8
Thrust on hydro
Contd…...
 Hydro the preferred source
•
Clean power
•
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
-
•
- no pollution ramifications during operation
hydro potential mostly in areas which need substantial support
for economic development
Integrated solution for power, drinking water and irrigation
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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...
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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...
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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
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Hydro development - the process
Potential
assessed
(845 Schemes)
Ranking Study
R anking St ud y
of unharnessed
399 schemes
Hydro Initiative
(162 schemes)
150,000 MW
107,000 MW
50,000 MW
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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...
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50,000 MW Hydroelectric ……..
 Detailed Project Reports
Contd…...
- 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
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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...
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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...
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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...
18
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...
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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...
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Contd…...
Communication
Consensus arrived through regular consultation process
•
Political consensus
•
Public awareness
•
Media support
Contd...
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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
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 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
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Thank you
Ministry of Power
Website
http://powermin.nic.in
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