Hydropower is renewable electricity generated by water. With limited coal, lignite, and oil resources, hydro and nuclear power are becoming increasingly relevant. Water mills and small-scale hydroelectric units can effectively utilize the major rivers and their perennial tributaries for meeting domestic power needs. Hydropower is already a major source of power globally but there are limited places to build hydropower, and the Union Territory (UT) of Jammu and Kashmir being one of them has an estimated hydropower potential of 20,000 Megawatts (MW), of which about 16475 MW have been identified. This comprises 11283 MW in the Chenab basin, 3084 MW in the Jhelum basin 500 MW in Ravi Basin & 1608 MW in the Indus basin.
Electricity is the second most talked about issue in Jammu and Kashmir and has relentlessly figured to the extent that it is one of the most discussed issues during elections. According to the state Power Development Department (PDD), energy demand in J&K has gradually increased at a 5-6% annual rate over the last five years. As per experts, given the scope of development in the UT, the demand for electricity will exceed 4000 MW in the next four years.
Does J&K generates enough hydroelectricity to meet its own domestic consumption or does its true hydropower potential remains untapped? This commentary is an attempt to understand the situation and offer plausible recommendations.
What do we have?
Economic Survey Report 2017 says that the energy demand in Jammu and Kashmir has gradually spiked by 2% to 3% per year up to the fiscal year 2015-16. Energy demand increased by 1.6% over the previous year during the fiscal year 2016-17. Currently, the Valley has a 200-300 MW peak deficit during the winter months. According to the PDD, the demand in the early winter is over 1900 MW, and it peaks beyond 2000 MW in January while the supply is 1600-1700 MW. It is also important to mention here that local production in the UT is recorded at just 150 MW due to the reduction in water levels in the winter months and the rest of the power is bought from the central pool.
Uri Hydroelectric Dam (480 MW), Dulhasti (390 MW), Salal (690 MW), and Baglihar are the state’s major hydroelectric power plants (450 MW). The Uri hydroelectric power station is located near Uri in the Baramula district on the Jhelum River. This station is built primarily beneath a hill and includes a 10-kilometer tunnel. The Dulhasti hydroelectric power plant is in the Kishtwar district of the Doda region, on the swift-flowing Chenab River. With neighboring beneficiary states Punjab, Haryana, Uttar Pradesh, Uttarakhand, Rajasthan, and Delhi, this project provides peaking power to the Northern Grid. The Baglihar hydroelectric power project is a 1,800,000 m3 run-of-river power project on the Chenab River in the southern Doda district.
It is important to mention that improvement in transmission and distribution is visible on a comparative basis, however, in terms of revenue generation, the situation is dismal, and warrants immediate improvisation. Better infrastructure, as well as the replacement of worn-out and obsolete equipment such as voltage transformers, transmission lines, poles, and the like, would invariably result in reduced wastage and losses. A recent article carried by Greater Kashmir published on February 16, 2022, states that the central government has not released a single penny for the construction of small hydropower projects in Jammu and Kashmir, despite announcing a Rs 2000 crore mega outlay under the Prime Minister’s Development Package. With no allocation in the previous five years, no small hydropower project could be developed in J&K after the PM package was announced.
Harnessing hydropower potential
Jammu and Kashmir is naturally gifted with two abundant resources 1) enough water resources for generating eco-friendly hydro-electric power and 2) numerous tourist destinations to promote tourism as the main industry sustaining the economy. With proper and adequate investment for harnessing these natural resources, particularly water for producing electricity, backed by proper planning, relevant expertise, and a robust infrastructure, the UT could generate enough power and spare.
There are also many power projects, small, medium, and of national importance, which have been established, and currently work on them is underway, for instance, the 1000 MW Pakal Dul, which is expected to be the largest hydroelectric power project in Jammu and Kashmir after completion, and the 850 MW Ratle power project, both of which are run-of-the-river projects that will significantly change the power scenario in the UT. Furthermore, once the strategically important Ujh Hydroelectric Power Project is completed, it will usher Jammu and Kashmir to self-sufficiency in power generation.
The Union Territory government has set a goal of doubling power generation in the next three years by investing Rs 34,000 crore in power project development, with the goal of turning Jammu and Kashmir into a hydropower generation surplus. J&K plans to increase its current hydropower generation capacity of 3500 MW over the next three years. Five mega hydropower projects with a combined capacity of 4134 MW have been accepted for execution in collaboration with NHPC: Ratle (824 MW), Kirthai-II (930 MW), Sawalakote (1856 MW), Dulhasti-Stage II (258 MW), and Uri-I Stage-II (240 MW). These projects are expected to cost Rs 34882 crore when completed, and J&K will have a surplus of power.
Despite having enormous hydropower potential, J&K is one of the country’s energy-starved regions. J&K relies heavily on hydroelectricity generated by rivers that run through the state to meet its energy needs. Although demand for energy has been steadily increasing, the estimated 20,000 MW of hydropower potential in Jammu and Kashmir has only been utilized to the tune of roughly 16%. 3210 MW of hydropower is currently being harnessed in the Union Territory. The state-run Jammu Kashmir Power Development Corporation (JKSPDC) uses 1211.96 MW from its 21 power projects, while the National Hydro Power Corporation (NHPC) uses 2,009 MW from seven projects.
The paucity of funds is deemed to be the primary reason for the inability to use its water resources to bridge its energy deficit. Apart from a lack of resources, another major impediment to harnessing hydropower in the erstwhile state is the “Indus Water Treaty,” to which both India and Pakistan are signatories. The Indus Waters Treaty (IWT), signed between India and Pakistan in 1960 with the World Bank as a guarantor, governs all water infrastructure development in the state. The treaty reserves Pakistan’s western rivers, the Jhelum, Chenab, and Indus, except for specific use by India for various purposes such as irrigation, domestic use, run-of-river hydropower generation, and other non-consumptive uses subject to design and water storage conditions, and other features clearly set out in the treaty.
Pakistan has consistently objected to almost all hydropower projects being built in the country over the years. Pakistan has objected to India’s proposed Kishanganga power project, as well as the 850 MW Ratle, 120 MW Miyar, 48 MW Lower Kalnai, and 1000 MW Pakal Dul hydro projects in the Chenab basin. Pakistan claims that building large reservoirs for electricity generation would deprive it of its share of water. Thus, the treaty prohibits reservoir storage of water on major rivers in J&K, limiting the scope of hydropower generation to only run-off river projects.
The way forward
The hydropower potential in Jammu and Kashmir has been largely untapped, leaving a significant energy deficit, but small hydropower plants may be the way forward. Given the region’s environmental vulnerability and economic constraints, promoting large hydro projects to harness the entire identified hydro potential may not be a good thing. Small, micro, or mini hydro projects are more environmentally friendly than large and medium hydro projects because they require less reservoir and civil construction work. The state has a huge potential for Small Hydro Projects (SHP) up to 25 MW, a potential of more than 1500 MW, but the achievement in harnessing it has been particularly dismal.
In times when Financial Institutions (FIs) are hesitant to finance large and medium hydroelectric projects for a variety of reasons, including long gestation periods and slow returns on large initial capital investments. However, with a 30% commitment to power purchase under the SHP policy, independent power projects will be able to satisfy financial institutions about their loan repayment capacity. Furthermore, there is potential for additional profits from the Clean Development Mechanism, a UN body that promotes emission-reduction projects in developing countries. All of these initiatives will allow investors to loosen their purse strings.
Without a doubt, the government has made efforts to promote SHP, mini and micro-hydel projects in the basin, but they have not yielded the desired results to date, in the absence of any policy guidelines for expediting mandatory clearances from various state agencies. Power development agencies should act as active facilitators for promoters and establish a single-window system for obtaining timely clearances. Similarly, bottom-up community-driven projects will be a better option in this sector for harnessing water resources.
Another critical factor is revenue realization. Despite a gradual increase in tariff recovery since 2002-03, the gap between targets and actual revenue realized has not been closed. In 2016-17, the revenue target was Rs 3860.36 crore, of which pure revenue was Rs 1,715.32 crore, and combined with miscellaneous revenue and electricity duty, the total revenue realized was Rs 1877.72 crore or 48.64 percent. To make the UT self-sufficient in power, the government must establish new generation capacity in a timely manner, provide long-term financing arrangements, exploit available hydro and solar potential, and build inter and intra-state transmission systems for power evacuation.
What is needed is massive investment in the power sector of the UT considering the UT Government’s limited financial resources, preferring more joint ventures and target-oriented outputs, and project completion within fixed timelines. An increase in joint ventures and public-private partnerships can also provide the necessary impetus for the UT to reap the benefits of hydropower generation. This will not only directly improve the UT’s power deficit, but it will also help in achieving the broader socioeconomic goals.
Conclusion
Jammu and Kashmir, which has abundant water resources, has the potential to generate enough hydroelectric power to meet its entire power needs while also meeting the needs of northern Indian states. However, due to a variety of political, economic, and administrative factors, this vital economic resource has not been not utilizing to its fullest potential. One of the primary reasons for this is that the IWT has had a significant impact on water resource exploitation in Jammu and Kashmir. Secondly, as a result of administrative inertia and corruption, the Power Development Departments have devolved into complete loss-making enterprises that are a drain on the state budget. Thirdly, due to UT’s poor economic situation, power generation has remained a very weak area. Above all, outdated machines and technology are still in use. With vast hydropower potential on one hand and rising power demand harming the UT’s economy on the other, the government must chalk out a roadmap to handle both the opportunity and challenge.
References:
https://www.google.com/amp/s/www.thethirdpole.net/en/climate/opinion-focus-on-small-hydropower-in-jammu-kashmir/%3famp
https://www.google.com/amp/s/m.thewire.in/article/economy/jammu-kashmir-power-crisis/amp
https://www.google.com/amp/s/www.greaterkashmir.com/amp/story/todays-paper/business-todays-paper/5-years-on-small-hydropower-projects-await-central-funding
https://www.dailyexcelsior.com/making-jammu-and-kashmir-power-surplus/
https://www.google.com/amp/s/wap.business-standard.com/article-amp/pti-stories/j-k-exploits-just-16-of-hydro-power-potential-despite-growing-demand-survey-118022500370_1.html
https://www.google.com/amp/s/www.greaterkashmir.com/amp/story/business/after-70-years-jk-set-to-double-hydropower-generation-capacity
https://www.google.com/amp/s/amp.dw.com/en/why-is-india-administered-kashmir-facing-a-power-shortage/a-60275456
https://www.researchgate.net/publication/289460375_HYDRO_POWER_ENERGY_FOR_SUSTAINABLE_DEVELOPMENT_IN_JAMMU_AND_KASHMIR
https://testbook.com/ias-preparation/hydroelectric-power-plants-in-india/amp/
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