India’s Push for Small Hydro Power: A Green Energy Initiative
In a significant address at the Bharat Renewable Energy Summit & Expo 2026 held in New Delhi, Minister of State for New and Renewable Energy and Power, Shri Shripad Yesso Naik, outlined the vital role of Small Hydro Power (SHP) in India’s clean energy transition. He emphasized that SHP not only bolsters energy security and decentralized power generation but also fosters employment and socio-economic development in remote regions.
Under Prime Minister Narendra Modi’s vision, India has made remarkable strides in its clean energy journey, positioning itself prominently on the global stage. The Minister detailed how renewable energy has become an essential element for ensuring energy security, promoting economic growth, and driving technological advancement.
Shri Naik announced that India has surpassed 300 GW of installed non-fossil fuel capacity, highlighting the diverse energy portfolio essential for the country’s geographic and developmental needs. He pointed out the untapped potential of Small Hydro Power, which is currently assessed to be around 21 GW across more than 7,100 sites, with only about 5.2 GW being utilized thus far. This suggests a considerable opportunity for the further enhancement of the sector.
The Minister explained that the benefits of Small Hydro Power extend beyond simply increasing power generation capacity. He noted that run-of-river projects, which are designed with environmental and technical considerations, require less land and minimize the large-scale displacement associated with larger reservoir-based projects. SHP can deliver reliable renewable energy closer to consumption points, enhancing the resilience of the power system, especially in challenging geographical areas. Additionally, it can create jobs, support local businesses, and generate economic opportunities while being mindful of ecological and community needs.
To support this initiative, the government has proposed a Small Hydro Power Development Scheme for 2026-27 to 2030-31, featuring an allocation of ₹2,584.60 crore and a target of adding approximately 1,500 MW of new capacity. This scheme will incentivize states to develop Detailed Project Reports for about 200 projects, ensuring a steady pipeline for future Small Hydro Power projects.
However, the Minister stressed that government backing is not enough to fully realize the sector’s potential. A collaborative effort among the Central Government, State Governments, developers, financial institutions, technology providers, and investors is essential. He called for policies that guarantee stability, streamlined approvals, improved business conditions, and better financial viability for projects.
The Curtain Raiser Programme marks the start of a vital national discussion about optimizing India’s Small Hydro Power capabilities. The dedicated SHP session at the Bharat Renewable Energy Summit & Expo 2026, scheduled for November 2-5, 2026, will serve as a critical platform for discussing policy changes, investments, financing options, technology, and partnerships.
Shri Santosh Kumar Sarangi, Secretary of the Ministry of New and Renewable Energy, extended a warm invitation to all to join the upcoming summit in significant numbers. He acknowledged that long lead times in initiating hydropower projects present challenges, particularly delays in obtaining necessary clearances. While the Ministry is assured by the Ministry of Environment, Forest and Climate Change about timely approvals for small hydropower initiatives, he emphasized the need to create a system that can alert stakeholders to delays.
Highlighting the importance of improving financial viability, Sarangi noted that the unique cash flow profile of small hydropower projects necessitates access to long-term capital. He urged the Indian Renewable Energy Development Agency (IREDA) to collaborate with banks and development institutions, including the Asian Development Bank and World Bank, to facilitate more patient capital for project developers.
He encouraged all stakeholders to share their insights and suggest additional measures to further promote hydropower, focusing specifically on small hydropower projects in India. Numerous stakeholders, including senior officials and representatives from research and industry sectors, attended the Curtain Raiser, signaling a collective effort towards advancing this renewable energy frontier.
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