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HomeSustainabilityRenewable EnergyIndia Greenlights USD 3.9 bn Hydropower Project Near China Border

India Greenlights USD 3.9 bn Hydropower Project Near China Border

The Indian government has approved a ground-breaking hydropower project in the country’s North-Eastern region, near the border with China. The 2,880 mw Dibang project, set to be India’s largest-ever hydropower venture, has received an estimated investment of INR 319 billion (USD 3.9 billion). The state-run hydropower producer, NHPC, will oversee the project which is expected to take around nine years to complete.

The approval comes as India aims to bolster its renewable energy generation to meet the rising power demand. Hydropower is classified as renewable energy and considered crucial in India’s transition away from coal, helping manage fluctuations caused by intermittent solar and wind supplies. However, the construction of dams has been marred by environment concerns and the displacement of communities, leading to protests that have delayed projects and increased costs.

The Dibang project, covering over 5,000 hectares (12,360 acres) of forest land, faces similar risks and challenges. NHPC’s optimistic nine-year timeline considers potential delays due to local protests and geological complexities. The approved investment includes INR 67.2 billion of government support for flood moderation and enabling infrastructure, such as roads and bridges, to connect the construction site. Several other projects in the Himalayan region have fallen years behind schedule, with some being blamed for soil erosion and necessitating local evacuations.

While the Himalayan region holds vast hydropower potential, with an estimated capacity of 46,850 mw and the potential to generate 115,550 mw, concerns exist about the impact of such projects in the disaster-prone area. The region is susceptible to landslides and earthquakes, raising questions about the safety and sustainability of large-scale hydropower developments.

Despite these concerns, the Himalayan arc has surged in hydropower projects. As of November 2022, the region, excluding West Bengal, had 81 large hydropower projects (above 25 mw), with 26 projects under construction and an additional 320 large projects in the pipeline. The abundant water resources and favourable topography make the Himalayan region an important source of hydroelectric power for India.

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