Small Hydro Power in India: Is it a sustainable business?

Small Hydro Power (SHP) is one of the most important renewable energy generation sources. It is a cost-effective technology that is being used for rural electrification in the developing countries including India. The Indian government is providing attractive initiatives to the private investors to promote faster development of SHP. Until now, a lot has been written about assessment, potential, advantages and the technical aspects of the SHP plants. However, the important business sustainability perspective has not been yet subjected to empirical analysis. Sustainable development involves three interconnected dimensions: social, economic and environmental sustainability. This paper attempts to investigate whether SHP business in India is a sustainable business. The study is based on the analysis of qualitative data acquired through 28 in-depth interviews with various actors that are connected to the SHP industry in India which include Independent Power Producers (IPPs), manufacturers, designers, consultants and representatives of various government organizations. The empirical material was collected in four states of India namely New Delhi, Himachal Pradesh, Uttarakhand and Jammu and Kashmir (J&K) in February, 2013. The data was acquired by individual in-depth interviews, group discussions and direct observation of one SHP plant. The results show that all the three dimensions of sustainability are being realized to a certain extent. However, utmost efforts have to be undertaken in order to call this sector completely sustainable. Both benefits and challenges in all these dimensions are highlighted and recommendations towards a sustainable SHP sector are provided. Further, this study also proposes suggestions for the interested investors. [ABSTRACT FROM AUTHOR]