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Economies of the Himalayas

Hydropower in the Himalayas

Why the Himalayas have huge hydropower potential, how states earn from it, and the environmental and safety concerns of building dams in fragile mountains.

Himalayan rivers offer enormous hydropower potential.

Potential and projects

India’s hydropower potential is concentrated in the Himalayas, especially Arunachal Pradesh, Himachal, Uttarakhand and J&K.

Benefits

  • Clean electricity.
  • Flexible: hydropower can ramp up quickly to balance solar and wind.
  • Revenue: states receive free power, usually around 12 percent of generation, as royalty.

Himachal’s revenue

Himachal earns significant income from hydropower royalties, supporting its budget.

Concerns

  • Fragile geology: tunnelling and blasting can destabilise slopes.
  • Disasters: in February 2021, a flood at Chamoli in Uttarakhand damaged hydropower projects and killed around 200 people. In October 2023, a glacial lake burst in Sikkim destroyed the Teesta III dam.
  • River ecology and fish.
  • Displacement of communities.

Balancing

Critics call for fewer, carefully chosen projects with strict risk assessments; supporters say hydropower is essential for clean energy.

The royalty power

A hydropower plant in Himachal gives the state 12 percent of its electricity free. The state sells it, earning money for schools and roads.

Thinking hydropower is risk-free clean energy

Mountain dams face disaster and ecological risks.

Key takeaways
  • The Himalayas hold most of India's hydropower potential.
  • States earn royalties, often around 12 percent free power.
  • Chamoli (2021) and Teesta III (2023) disasters showed risks.
  • Careful project selection is needed.
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