By Sandeep Batra, Executive Director (Planning and EDM), NHPC Limited
India’s power sector is undergoing a structural transformation, driven by rapid renewable energy deployment, transmission network expansion and increasing digitalisation. As the country pursues its target of reducing emission intensity and accelerates integration of solar and wind power, ensuring grid stability has become a key priority.
The intermittent nature of renewable energy generation has increased need for flexible and despatchable resources, positioning hydropower and pumped storage projects (PSPs) as critical enablers of the energy transition.
Against this backdrop, NHPC Limited, India’s largest hydropower developer, has emerged as a key player in strengthening country’s clean energy infrastructure.
While traditionally focused on hydro power, the company has now diversified into solar, wind, pumped storage, power trading, battery energy storage and green hydrogen. It has set an ambitious target of achieving 50 GW of installed capacity by 2047, reinforcing its role in supporting India’s long-term energy security and decarbonisation goals.
NHPC’s portfolio
NHPC currently operates 31 power stations with a total installed capacity of 9,332.9 MW. Its operational portfolio comprises 22 hydropower stations (7,251.2 MW) and three solar and wind power projects (400 MW) under NHPC, along with two hydropower projects (1,520 MW) and four solar projects (161.7 MW) under its subsidiaries.
The company has 16 projects aggregating 9,204 MW under construction. These include five NHPC hydropower projects (4,880 MW), five hydropower projects being developed through subsidiaries (3,134 MW) and six NHPC solar power projects (1,190 MW).
Going forward, NHPC has identified a robust development pipeline. The company is planning to develop 13 hydropower projects with a cumulative capacity of 26,476 MW, comprising eight projects (10,062 MW) at various stages of statutory clearances, three projects (1,890 MW) under survey and investigation and three new initiatives (14,524 MW).
In addition, NHPC is pursuing a significant pumped storage portfolio, comprising over 10 GW capacity to support renewable energy integration and grid balancing. The company is also planning to add more solar power projects into its portfolio.
Over the years, NHPC has evolved from a hydropower developer into a diversified clean energy company with a presence across renewable energy development, power trading, energy storage, consultancy and green hydrogen. In June 2020, the Ministry of New and Renewable Energy designated NHPC as a renewable energy implementing agency, entrusting it with the responsibility of issuing bids for renewable energy projects, executing long-term power purchase agreements with developers and signing back-to-back power sale agreements with distribution utilities.
It plays a key role in implementing rooftop solar programmes at government buildings under eight central ministries and departments. It also serves as the nodal agency for the PM Surya Ghar Muft Bijli Yojana in Haryana, Jammu & Kashmir, Sikkim, Manipur and Nagaland. In addition, NHPC is responsible for developing 1,500 MWh of battery energy storage system (BESS) capacity to support renewable energy integration and grid flexibility.
Beyond project development, NHPC has established its presence in power trading after securing a Category-I interstate trading licence from the Central Electricity Regulatory Commission. It is registered on the DEEP e-bidding portal and is a trading member of both the Indian Energy Exchange and Power Exchange of India Limited.
The company also provides consultancy services for domestic and international hydropower projects and acts as lenders’ engineer for financial institutions. In addition, it is expanding into green hydrogen through pilot fuel-cell micro grid and e-mobility projects in Leh (Ladakh) and Chamba (H.P.).
Recent developments
NHPC has recorded several key milestones across its hydro and renewable energy portfolio. The company has commissioned three units of the 2,000 MW Subansiri Lower hydroelectric project in FY 2025-26 and balance units are expected to be commissioned within FY 2026-27, marking a significant milestone in development of India’s largest hydropower station. Further, MoP has approved investment for implementation of 1,720 MW Kamala hydroelectric project in Arunachal Pradesh in April 2026. NHPC has also achieved the full commissioning of the 800 MW Parbati-II hydroelectric project during FY 2025-26.
Further, in the renewable energy segment, NHPC commissioned 300 MW Karnisar solar power project in Bikaner, Rajasthan, under the CPSE Scheme in FY 2025-26.
PSP potential
The rapid growth of renewable energy is increasing the need for flexible and reliable energy storage. With India planning to have 500 GW of renewables integrated in to the grid, the grid must manage greater variability in solar and wind generation while ensuring frequency control, voltage support and reserve capacity.
While BESS is suitable for short-duration applications, PSPs provide cost-effective, long-duration energy storage, making them critical to renewable energy integration, grid balancing and power system reliability.
NHPC is exploring development of more than 10 GW PSPs across multiple states viz. Maharashtra, Odisha, Madhya Pradesh, Andhra Pradesh and Rajasthan etc. These PSPs are in various stages of development.
The company is also exploring possibilities of forming joint ventures with the state governments to facilitate PSP development.
Challenges and outlook
Despite strong growth prospects, the hydropower sector continues to face several challenges. Rising electricity demand and the need to significantly expand generation capacity require substantial investments, while land acquisition, transmission constraints and the weak financial position of distribution companies remain key sector-wide bottlenecks.
Hydropower projects are particularly capital-intensive and have long gestation periods, in comparison to rapidly deployable solar and wind projects.
Project development is further constrained by delays in obtaining land, forest and environmental clearances, social opposition arising from displacement and livelihood concerns, ecological issues, interstate disputes over water resources, and coordination challenges among central and state agencies.
In addition, geological complexities, contractual disputes and natural calamities often lead to implementation delays, while the declining cost of solar and wind power continues to intensify competition for new investments.
NHPC has outlined an ambitious growth road map, targeting an installed capacity of 50,000 MW by 2047, in line with India’s long-term clean energy objectives. The company is executing the 2,880 MW Dibang Multipurpose Project, the country’s largest hydropower project under construction, while work on the 1,720 MW Kamala hydroelectric project , 1,800 MW Sawalkot hydroelectric project and 3,097 MW Etalin hydroelectric project is expected to commence shortly.
It is also spearheading development of the 2,700 MW Siang Lower and 11,200 MW Siang Upper Multipurpose projects in Arunachal Pradesh, which will together add 13,900 MW of hydropower capacity.
Beyond India, NHPC is expanding its regional presence through exploration of three hydropower projects in Nepal.
Backed by extensive expertise in constructing complex hydropower infrastructure, NHPC has established strong engineering capabilities. The Parbati-II hydroelectric project, featuring the world’s longest inclined pressure shafts of 1,545 metres constructed through Tunnel Boring Machine (TBM), further highlights the company’s technical expertise. Collectively, these initiatives are expected to strengthen NHPC’s position as India’s leading hydropower developer and a key contributor to the country’s energy transition.