hydro development - the challenges and response
DESCRIPTION
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. - PowerPoint PPT PresentationTRANSCRIPT
1
Hydro Development -
The Challenges and Response
R.V. SHAHISECRETARY
MINISTRY OF POWERGOVERNMENT OF INDIA
ICOLD Conference Montreal (Canada)
June 20, 2003
2
Share in generation - Global scenario
1973 2000
• Hydro share has reduced from 21% to 17.1%
• Nuclear share increase significant from 3.3% to 16.9%
Gas 12.1%
Oil 24.7%
Coal 38.2%
Others **0.7%
Nuclear3.3% Hydro
21.0%Gas
17.4%Oil 7.9%
Coal 39.1%
Others **1.6%
Nuclear16.9%
Hydro17.1%
** Other includes geothermal, solar, wind, combustible renewables & waste
6,121 TWh 15,379 TWh
3
4700
0
1600
00
1700
00
1500
00
2736
0 6567
8
5242
7
5600
0
2701
0
3100
00Norway Canada Brazil China India
Potential (MW)
Installed capacity (MW)
Hydro Potential - Global Scenario
Only 18% of hydro potential utilised in India
% Potential utilized
58%
41%
31%18%
18%
4
7.3
11.5
7.8 8.8
12.213.0
18.020.5
1992-93 1996-97 2000-01 2002-03
Power Shortages (%) Peak Shortages (%)
Power Supply position in India
5
Hydro development : Rationale
25%29%40%46%
60%71% 75%
54%
'70 '80 '90 2003
Hydro Thermal + Others
Fuel Mix
Years
6
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…...
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Thrust on hydro
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…...
Contd…...
8
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
Thrust on hydro Contd…...
Contd…...
9
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
Thrust on hydro Contd…...
10
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...
11
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...
12
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
Contd…...
13
Hydro development - the process
Ranking Study
Potential assessed
(845 Schemes)
Ranking Study of unharnessed
399 schemes
Hydro Initiative(162 schemes) 50,000 MW
107,000 MW
150,000 MW
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50,000 MW Hydroelectric Initiative50,000 MW Hydroelectric Initiative
Initiative launched in May 2003
• Preparation of Preliminary
Feasibility Reports - Dec.’03 - Sep.’04
Contd...
Consultants identified to undertake Feasibility Studies
162 schemes identified with installed capacity of 50,560 MW located in sixteen States
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Implementation - 2007 - 2017
Clearances / sanctions - Sep.’04 - Jul. ‘06
50,000 MW Hydroelectric ……..50,000 MW Hydroelectric …….. Contd…...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
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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...
17
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…...
18
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 processContd...
Contd…...
19
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…...
20
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...
21
Communication
Consensus arrived through regular consultation process
• Political consensus
• Public awareness
• Media support
Contd…...
Contd...
22
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
Opportunities in Indian hydroelectric sector
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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 youMinistry of Power
Website
http://powermin.nic.in