IDENTIFICATION OF BARRIERS TO THE DEVELOPMENT OF HYDRO POWER IN UTTARAKHAND.

B.C.K. Mishra 1 , Atri Nautiyal 2 , Dayanand Pandey 2 , Anil Kumar 2 , H.S.S. Santosh Kumar 2 and Mohammed Yaqoot 2 . 1. Uttarakhand Power Corporation Limited, Dehradun, Uttarakhand – 248001. 2. University of Petroleum and Energy Studies, Dehradun, Uttarakhand – 248007. ...................................................................................................................... Manuscript Info Abstract ......................... ........................................................................ Manuscript History

India has recorded remarkable economic growth during last decade or so [1] [2][3] [4]. Access to reliable and affordable electricity is considered as one of the major input factors to the economic development [5]. As economy grows demand of quality, reliable and affordable energy increases [6]. Thus, in supporting to the accelerated economic development, India"s power sector has also experienced accelerated growth trajectory during the phase [7]. Capacity-wise, India has 5th largest electricity generating capacity in the world with a reported installed capacity of 330.86 GW as on 30th November 2017 [8]. Fuel-wise, thermal (coal, gas, diesel) and hydropower contribute 66 % and 14 % to India"s power generation capacity and the rest is contributed from energy sources namely solar, wind, small hydro, biomass and nuclear ( Table 1). As evident in Table 1, the fuel-mix clearly indicates the dominance of coal in India"s power. This pattern of energy mix is highly problematic for the country [9]. As a responsible nation with respect to the global concerns for sustainable development, India has to focus mainly on Green Energy which generates electricity through renewable sources [10] [11][12].  Figure 1:-India"s primary energy mixfuel type [8] Renewable energy technology exists in many forms like Solar, Wind, Biomass and Hydro [8], [9], [11]- [13].Yet the largest source of renewable energy comes from proven technology, Hydro Power [12]. Hydro Power plants are the renewable/clean sources of energy due to their emission/radiation free operation and generation of power at zero fuel cost [12]- [17]. Hydro Power is considered as the fundamental instrument for reasonable advancement and sustainable development [17]- [27]. India has about 150GW of hydro power potential, yet the nation has tapped under 45GW of this and contributing just 15% of the total energy mix [28][8] [29]. Hydro power stations also allow us to reap the benefits of the economies of scale [30]. Due to its large scale (economy of scale) and zero fuel-cost based operation, hydropower is the cheapest source to generate electricity [13], [14], [25], [30]- [36]. Once a dam has been constructed and the hydro power equipment installed, the energy source (i.e. water) is free that is renewed yearly by snow and rainfall [37], [38].  [20]. 12. Hydroelectricity makes it feasible to utilize other renewable sources [14]. At very low costs they can be modified to allow pumped storage [11] [13]. It is possible with most of the existing hydropower plants, to make use of them as ideal storage for wind and solar power which are intermittent in nature [33].  [29]. Despite of several advantages and available hydro potential, its contribution is only 13.5% of the total energy mix. Availability of such large potential indicates huge opportunity for India to generate cheap and clean electricity through large scale Hydro power development.

Utilization of Hydro Power potential in Uttarakhand:-
The Himalayan glaciers feed the perennial rivers of the Himalayan states and make them suitable for the Thermal 66% Nuclear 2% Hydro 13%
Arunachal Pradesh is in north-eastern part of India that faces law and order issues and thus large scale hydropower development in that state may not be feasible [55] [49]. Average unutilized hydropower potential of 92.81% for north-eastern states is indicative of the law and order challenges and subsequent feasibility issues for hydropower development in the region [42]. After Arunachal Pradesh, Uttarakhand positions next with substantial unutilized hydropower capability of around 12,932 MW [42]. As Uttarakhand is a peaceful state with negligible law and order problem compared to north-eastern part of India, the probability of development of unutilized hydropower potential is higher. Thus, the study focuses on hydropower development in the state of Uttarakhand.
In Uttarakhand, out of the total hydropower potential of 18,175 MW, only 3,426. 35  However due to urbanization and economic growth, demand for electricity has been growing in the state. During the initial years after formation of the state of Uttarakhand in the year 2001, it was an energy surplus state and over the years due to its increase in demand and slow pace of capacity addition, it has become an energy deficit state since 2006 [58]. With the state facing power shortages and with significant unutilized hydropower potential, policymakers of the state need to promote hydropower development for electricity generation through cheap and clean source of energy leading to sustainable development of the state.

Growth of Hydropower in Uttarakhand:-
It is evident from Table 3 and Figure 2 that during last few years, the growth in development of hydropower in Uttarakhand has been sluggish. The sluggish growth is depicted by the flattening of the growth curve of hydropower in Uttarakhand since 2010 ( Figure 2).  The sluggish growth in the development of hydropower in Uttarakhand indicates presence of barriers and subsequent risks that hinder its development. Low hydropower capacity utilization in other hydropower potential rich states such as Arunachal Pradesh point that they may also be facing similar barriers. This research aims to study the barriers and risks associated with hydropower development in India, with special focus on Uttarakhand.

Identification of Barriers to the development of Hydro Power in Uttarakhand:-
A barrier to the development of Hydro power may be defined as a factor that negatively affects its adoption and subsequent utilization which hampers its widespread diffusion [59]. In Uttarakhand, private sector participation in the hydro power sector is noticeably absent [ Longer gestation period and allocation of funds:-Hydro Power projects entails long gestation period, due to unavailability of geological, seismological and hydrological records, delays in land acquisitions, resettlement and rehabilitation issues, law and order problems and poor connectivity[62] [63]. Whereas Thermal projects have short gestation period and get priority in fund allotments with a view to get early benefits [11][64] [61].
Hydrological Challenges:-River discharge observations are made available to the developers on pretext of confidentiality to the concerned government department only after the approval of the Ministry of Water Resources, GoI [15], [20]. Considerable time is lost in getting the approvals and the data [19].

Lack of Private Sector Interest:-
In the perspective of payback period, lack of availability of data, construction risks, regulatory and political issues, private sector is not showing interest for investing in Hydropower projects [27], [39], [51], [60], [61].

Environmental and Forest Clearances:-
Due to several concerns on deforestation, submergence, monuments, seismicity, ecology, flora, fauna , wildlife protection and catchment area treatment getting Environmental and Forest clearances became a major issue in the development of Hydro power projects [1], [31], [49], [62], [67], [70], [71], [78], [79]. Tehri is the best example of this issue as it took more than 36 years to start after conceptualization of the Project, this has delayed the Project and in turn realization of energy [42].

Public and Political Hesitations:-
Intermittent stoppage of projects due to local and political hesitations and frequent bandhs against the projects will take much time in completing the project [20]. Sometimes the project may also have a difficulty in even getting clearances due to this regard [19] [57].
Financial Constraints:-High costs are involved. As many of these projects are located in remote locations and connectivity is an issue, costs incurred in developing the transport infrastructures (roads, protective measures for roads), bridges, housing infrastructure, royalties, custom duties, etc., [36], [70] Power Evacuation and Transmission Facilities:-Hydropower projects are majorly built up in the hilly areas and remote locations where there is no transmission facility available, developing proper transmission facilities for evacuation of power will take very long time which further delays the schedule of the project [19], [20], [35], [42], [46], [49], [54], [75], [80]. Also there is a difficulty in getting power for auxiliary consumption at the time of construction.

Resettlement and Rehabilitation Issues:-
As this is public related and sensitive issue, implementation of resettlement and rehabilitation for the project affected people is difficult [11], [42], [64], [71]. It is one of the main reasons for the delay in the project execution, resulting in time and cost over-runs. Several projects like Tehri, Sardar Sarovar, Indira sagar are affected due to R&R issues, where the opposition came from the environmentalists and the surrounding people [42], [69]. Hydroelectric power projects in India"s mountainous north and northeast regions have been slowed down by rehabilitation controversies,  [11], [31], [39], [42], [65], [66], [69].

Law and Order Problems:-
Lack of support of Concerned State government in ensuring proper law and order situation in the local and downstream areas of project location and due to lack of commitment in augmenting the required resources, especially in the projects located at inter-state boundaries are the reasons hampering the project activities [19], [20], [36], [41], [42], [42], [49], [65], [69], [71], [75].

Regulatory and Policy Issues:-
Frequent changes in policy/norms by the central and state government, delay in getting environmental and forest clearances, delay in getting NOC from local village level institutions and government departments [53]. It is a major barrier because , the projects can be developed or operated only if there is a proper regulatory/permitting frameworks [64][62] [27], [39], [51], [60], [61].
Lack of Local Infrastructure:-Infrastructure here comprehensively allude to not just physical transmission facilities and distribution networks but also necessary equipment and services for the development of project [61]. Absence/very bad quality of access roads and/or bridges, delay in grid extension or absence of grid to match with commissioning of projects, absence/poor communication facilities (mobile, internet etc.) at the project sites are the major infrastructural barriers affecting the development of HPPs [53].

Non-standard Designs and Manufacturing:-
Hydropower projects have complex designs [82]. Each new project typically has a unique and site-specific design as no standard designs are available it requires long term for planning purpose [82]. This engenders more design effort, more environmental review effort, and increased manufacturing effort, each of which increases schedule and cost [13], [83]. Lack of advances in design is also one of the major drawback in this regard.

Dearth of Good Contractors:-
Experienced personnel must be adopted on to develop and initiate safe and reliable operational and maintenance protocols and procedures [70], [82]- [84]. Non-availability of technically skilled manpower to operate advanced machinery/control panels [53], [59]. A matter of concern in the execution of large projects is the dearth of competent and resourceful contractors, as it often results in time and cost overruns of hydro projects [42].
Tariff:-Tariffs from hydropower projects are higher in the initial years as compared to other sources due to lack of incentives like tax concessions, financing cost and construction of projects in remote areas with inadequate infrastructure [75]. Due to present tariff formulation norms for Hydropower projects (based on a cost plus approach) with no premium for peaking services and the provision for 12% free power to distressed states from the initial years are also proving to be Obstacles. [85][49] [11] Inter-State Aspects:-Under Indian Constitution, water is a State subject [19], [66][62], [67], [70]. No objection certificate is required from each down-stream state for getting sanction even for Run-of-River projects and this is very time consuming [19]. Many of these Hydropower projects have common river systems between the states and this end up with several inter-state issues [42]. Some of these projects have received techno-economic clearance (TEC) of CEA but the investment sanction could not be accorded due to inter-state aspects [40], [42], [67]. A number of projects have also not been accorded CEA clearance on account of inter-state issues [42].

DPR Preparation:-
There is lengthy and time consuming process for preparation of DPR and clearances having uncertainty of time line and shortage of people with clearing agencies e.g. forest and wild life clearances, environmental clearances, availability of land and hydrology records etc [19], [20], [62], [70].

Valuation of Forest land:-
NPV is paid for the land if forest land is diverted for non forest use or for constructing Hydro power projects [86].

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But the state governments also demand for the rights and privileges. In some cases where tribal people live both NPV as well as Rights and Privileges are applicable [86]. In some cases the state governments also demand additional charges for carrying out forestry/wildlife activities and for bio-diversity management to be done at the project sites [86].This leads to increase in project cost and also takes much time in evaluating the land.

Power Purchase Agreements:-
In the present scenario, there is focus on renewable capacity addition (mainly Solar, Wind and Biomass) and it is becoming difficult to sell hydropower as tariff is the major barrier [75]. There is hesitation with respect to distribution utilities or DISCOM's to go into long term Power Purchase Agreements (PPAs)[75].
Market Trends:-Hydro power may encounter typical seasonal market challenges, deficient supply amid the dry season and oversupply amid the wet season [64]. During dry months, a relatively low percentage of generated power is sold at premium prices when demand is high [64]. During the wet season, prices are low and there is likely an oversupply of generated power, unless it can be exported [64].
Small hydro segment:-Development of small hydro often suffered due to inaccessibility of the sites, lack of power evacuation infrastructure, investigation and construction difficulties, land acquisition and financing difficulties, inadequacies in institutional support and in some cases law and order problems [42].

Security Concerns:-
Tremendous hydro potential of the nation is accessible in the zones influenced by revolt and militant issues [20]. The peace issue in such ranges prompt deferral in execution of the projects and also cost over runs [20]. Also in several instances Maoists targeted hydro power projects and damaged the machines and vital structures in the power house. This also hinders in developing new hydro projects [87].

Conclusion:-
Worldwide Policy makers are promoting sustainable development to counter the challenges of climate change and energy security. Hydropower is a clean source of energy and is a desirable constituent of power generation mix of a country resulting in energy security and sustainable development. Hydro power plant also helps in flood control, irrigation and water supply. Despite of several advantages of hydropower generation, hydropower development is facing several barriers and risks. Longer gestation period, environmental and rehabilitation issues, land acquisition problems, geological surprises, location disadvantages, financial constraints, and lack of public awareness etc., are the major barriers to the development of hydropower. This paper should be basis for future studies in creating framework for reducing bottlenecks in industry and to promote hydroelectricity.