India's Small Hydropower: 5.2 GW Harnessed, 21 GW Potential

New Delhi, Sep 10 (PTI) India harnessed 5.2 GW of small hydropower capacity out of the overall potential of 21 GW across 7,100 identified sites in the country, said Union minister Shripad Yesso Naik on Thursday.

Addressing a curtain raiser event ahead of the Bharat Renewable Energy Summit & Expo 2026, the minister of state for power and new & renewable energy said that small hydropower has a distinctive role in clean energy transition and can contribute to the country's energy security, decentralised generation, employment and socioeconomic development in remote areas.

He said that renewable energy has emerged as a powerful instrument of energy security, economic growth, technological progress and employment generation.

India has crossed the milestone of 300 GW of installed non-fossil-fuel capacity, he said, adding that the strength of India's energy transition lies in building a diverse, balanced and resilient energy portfolio suited to its geography, resources and development needs.

He said India's assessed small hydropower potential is around 21 GW across more than 7,100 identified sites, of which only about 5.2 GW has been harnessed.

This represents a significant opportunity for further development of the sector, he said.

Naik said the significance of small hydropower goes beyond adding generating capacity. Wherever technically and environmentally feasible, appropriately designed run-of-river projects can provide a renewable energy option requiring relatively less land and avoiding the large-scale submergence and displacement associated with major reservoir-based projects.

Small hydropower can provide dependable renewable electricity closer to the point of consumption, strengthen decentralised generation and contribute to the resilience of the power system, particularly in geographically challenging regions, the minister said.


Besides, the sector can also create employment, support local enterprises and generate economic opportunities in remote areas while maintaining sensitivity towards ecology and local communities, he said.

The minister highlighted the government's proposed Small Hydro Power Development Scheme for the period from 2026-27 to 2030-31 with an outlay of Rs 2,584.60 crore and a target of approximately 1,500 MW of new small hydropower capacity.

He stressed that the government support alone cannot unlock the full potential of the sector and called for a strong partnership among the central government, state governments, developers, financial institutions, technology providers and investors.

The Bharat Renewable Energy Summit & Expo 2026, to be held from November 2-5 at Bharat Mandapam, will host a session on small hydropower, which is expected to provide a platform to deliberate on policy reforms, investment, financing, technology and partnerships.

The minister invited all stakeholders to participate in this national endeavour and work together to harness India's river systems, geographical diversity, indigenous technological capabilities and modern innovation to build a cleaner, stronger, more self-reliant and sustainable India.

New & Renewable Energy Secretary Santosh Kumar Sarangi also highlighted the long lead time in starting hydropower projects as a key challenge, noting that delays in obtaining forest, environment and right-of-way clearances adversely impact timely project execution.

He said that while the Ministry of New and Renewable Energy (MNRE) has been assured by the Ministry of Environment, Forest and Climate Change (MoEFCC) of timely clearances, particularly for small hydropower projects, a mechanism should be developed to generate and escalate alerts in cases of undue delays.

Emphasising the need to improve the bankability of small hydropower projects, the Secretary said that their unique cash-flow profile necessitates access to long-term patient capital.

He urged the Indian Renewable Energy Development Agency (IREDA) to take the lead in working with banks and multilateral development institutions, including the Asian Development Bank (ADB) and the World Bank, to facilitate greater availability of patient capital for project developers.