Report Shows Potential for Global Small Hydro Growth and Development By Michael Harris, Online Editor, HydroWorld.com   LONDON -- A new report from energy market analyst GlobalData indicates that governments around the world are beginning to see advantages of small hydropower development, HydroWorld.com has learned. According to the report, titled "Small Hydropower (SHP) - Installed Capacity, Levelized Cost of Energy (LCOE), Competitive Landscape, Opportunity and Key Country Analysis to 2020," global installed hydropower capacity increased from 896.9 GW in 2006 to 1,072.1 GW in 2011. The report says that number is expected to grow to 1,443 GW by 2020, in part due to an increased emphasis by governments around the world. GlobalData's research indicates many countries are actively seeking ways to reduce their reliance on fossil fuels and minimize carbon footprints, and small hydro plants have become an attractive solution. GlobalData says small and mini hydro plants' effects on both the environment and budgets is less substantial than large dams, thereby reducing issues created by deforestation and submergence. The report also notes that the small plants are quicker to construct and offer higher returns given the low capital investment required and smaller operational and maintenance costs. China is noted as being the world's largest small hydro market, accounting for 55.3% -- or 59 GW -- of global installed small hydro capacity in 2011. India follows with 9%, and the U.S. rounds out the Top 3 with 6.9%. GlobalData forecasts the cumulative small hydro capacity to increase from its current 106.7 GW to 137.8 GW by 2020.

Hydro-power key to India's energy security: Study

MUMBAI: With coal supply remaining erratic and controversies dogging nuclear energy, hydro-powercould hold the key to India's energy security and put an end to power cuts, according to a study released here Thursday. 

Given India's tight domestic coal supply and increasing reliance on imported coal, hydro-electric capacity with foreign direct investment (FDI) can provide the country with adequate power, says the report by HSBC Global Research. 

While the thermal power producers have yet to be assured of uninterrupted fuel supply, nuclear power projects in Maharashtra and Tamil Nadu face uncertainties, experts say. 

On the other hand, hydel power projects could attract FDI as proved in the 1,200 megawatts (MW) Teesta-III project in Sikkim where six players have invested Rs.750 crore. 

This has resulted in nearly 70 percent of the work being completed and the generation from the first unit likely to start in a year, a top official associated with the project said. 

Hydro-projects are more eco-friendly, cost-efficient and a renewable source. They do not emit green house gases unlike coal-based projects which contribute over 50 percent of global carbon emissions, the report said. 

However, the tariffs of new hydro-projects, at Rs.3.50-4.00 per unit is close to that of imported coal-based projects due to the initial high fixed costs, long gestation period, low utilisation and high capital costs, but it could be offset from the sale of CERs (Certified Emission Reduction), it pointed out. 

As per the Central Electricity Authority, hydro potential in India is estimated at 145 (gigawatts) GW, of which installed capacity is is around 34 GW and another 12 GW is under construction, or around 32 percent of the estimated total potential.