India ready to build mega Subansiri Lower hydropower project near China border
India is on the verge of commencing a large-scale hydropower project that has been under development for two decades, marking a major milestone in the nation's journey towards energy transition, media reports said.
NHPC Ltd., a government-owned hydropower company, is set to begin trial runs in July for the Subansiri Lower project located in the northeastern states of Assam and Arunachal Pradesh, close to the Chinese border, Bloomberg reported.
The project, which has faced huge delays due to protests and litigation over environmental concerns, is finally nearing completion.
The first unit is expected to be commissioned by December, and the remaining seven units will be operational by the end of 2024, as stated by Rajendra Prasad Goyal, the finance director of NHPC Ltd, the report said.
Hydropower plays a crucial role in balancing the grid, especially with the increasing generation of intermittent solar and wind power.
The cost of the Subansiri Lower project has surged to 212.5 billion rupees ($2.6 billion), exceeding the initial estimate by more than three times. The project faced a significant setback when it was suspended for eight years due to opposition and concerns regarding dams.
However, in 2019, the National Green Tribunal granted permission to resume the work.
The opposition to hydropower projects has restricted India's utilization of its vast hydropower potential, which is estimated to be around 145 gigawatts, with only a fraction of it being tapped so far.
“We need to get nearly 40 approvals from different departments before we start building a hydropower project. All the scrutiny should be done at this stage,” Goyal was quoted as saying by Bloomberg. “Any stoppages after the construction has begun are problematic.”
Large dams not only serve as a means of enhancing local economies in regions along India's tense borders with China and Pakistan but also contribute to the country's overall hydropower development.
With the Subansiri project nearing completion, NHPC is currently in the process of finalizing construction contracts for the ambitious Dibang project, which is set to be India's largest planned hydropower plant with a capacity of 2.9 gigawatts.
In order to promote hydropower generation, the government has designated large dams as clean energy sources. As a result, provincial power distributors are required to prioritize the purchase of hydropower over electricity generated from fossil fuels.
Further, the government has agreed to provide budgetary support for civil construction and flood moderation projects in certain cases.
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