Challenges Facing Small Hydropower Projects in India Amid Policy Support
Small hydropower projects in India struggle despite policy push, potential
Business Standard
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Despite India's push for renewable energy, small hydropower plants (SHPs) contribute only 1% to the sector's total output. Installed capacity has increased marginally from 4,273 megawatts in FY16 to 5,171 megawatts by February 2026, indicating a struggle for growth in rural electrification.
- 01SHPs contribute only 1% of India's total renewable energy output.
- 02Installed capacity of SHPs has increased from 4,273 MW in FY16 to 5,171 MW by February 2026.
- 03There are currently 854 operational SHP units in India.
- 04Solar and wind energy dominate India's renewable energy sector.
- 05SHPs are essential for rural electrification despite their low contribution.
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India's renewable energy sector has expanded significantly, primarily driven by solar and wind energy. However, small hydropower plants (SHPs) remain underutilized, contributing just 1% to the total renewable energy output. According to data from NITI Aayog, the installed capacity of SHPs has seen minimal growth, rising from 4,273 megawatts (MW) in FY16 to 5,171 MW as of February 2026. Currently, there are 854 operational SHP units across the country. While SHPs are crucial for rural electrification, their potential remains largely untapped amidst a growing focus on solar and wind energy.
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The limited growth of small hydropower projects affects rural electrification efforts, hindering access to reliable energy in remote areas.
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