IMPACT ANALYSIS OF GOVERNMENT POLICIES FOR SHP DEVELOPMENT IN INDIA

Abstract

The small hydropower system is one of the most effective renewable sources of energy for sustainable development. Strengthening national policy frameworks and the integration of hydro energy, enhancing national capacity for research and development and transfer and diffusion of small hydro energy technologies, establishing markets for small hydro, increasing access to finance and establishing enterprise for installing operating, and maintaining small hydro energy are some of the way forward to sustainable development using small hydro system. In India small hydro power up to 25 MW capacity also includes the mini and micro hydro power projects, which are usually confined strictly to local use. A potential of over 15000 MW has been identified from small hydro power and Government of India has been according priority to SHP development as thrust area. This dissertation will summarize the concept of Small hydropower plant and the government policies initiative taken to develop this sector. Different states have their own policies with respect to hydropower generation. Under the present study small hydro policies of different states have been studied and generation cost have been analyzed, for special category states and other states under state and private sector, using policy impacts of different aspects in the different states. Based on this generation cost a comparison has been done between old and new MNRE subsidy policy to state and private sector in special category states and other states. It has been found that new policy for state sector in special category states and other states is good for plant capacities 2 MW, 5 MW and 25 MW and new policy for private sector in special category states is good for plant capacities 2 MW and 25 MW and in other states it is good for plant capacity of 5 MW.