India is on the verge of initiating a major hydropower project that has been in progress for two decades, marking a significant milestone in the country's energy transition.
NHPC Ltd., a state-run hydropower company, plans to begin trial runs for the Subansiri Lower project in July. This project spans across the states of Assam and Arunachal Pradesh in India's northeastern region. The commissioning of the first unit is anticipated in December, with all eight units expected to be operational by the end of 2024, as stated by Rajendra Prasad Goyal, the finance director of NHPC Ltd.
Hydropower plays a crucial role in grid stability due to its ability to respond swiftly to fluctuations in electricity demand, especially as solar and wind power, which are intermittent sources, continue to grow. However, the Subansiri Lower project, a 2-gigawatt undertaking initiated in 2003, faced delays due to protests and legal battles prompted by concerns over environmental impact.
The project's cost escalated to 212.5 billion rupees ($2.6 billion), surpassing the original estimate by more than three times. In 2019, after an eight-year suspension, the National Green Tribunal permitted the resumption of work. Opposition to dams has restricted India from harnessing even a third of its potential hydropower capacity of 145 gigawatts.
Goyal emphasized the need for obtaining approximately 40 approvals from different departments before commencing a hydropower project. He emphasized that thorough scrutiny should be conducted at this stage to avoid any disruptions once construction has begun.
Large dams also serve as a means for India to stimulate local economies in regions along its tense borders with China and Pakistan. As the Subansiri Lower project nears completion, NHPC is in the final stage of its development.
To promote hydropower, the government has granted large dams the status of clean energy. This mandates provincial power distributors to prioritize the purchase of hydropower over electricity generated from fossil fuels. The government has also agreed to provide budgetary support for civil construction and flood moderation work in certain cases.