As per MRFR analysis, the India Hydropower Market Size was estimated at 25.45 (USD Billion) in 2023. The India Hydropower Market Industry is expected to grow from 30(USD Billion) in 2024 to 55 (USD Billion) by 2035. The India Hydropower Market CAGR (growth rate) is expected to be around 5.665% during the forecast period (2025 - 2035).
Key India Hydropower Market Trends Highlighteda
The India Hydropower Market is currently experiencing significant trends driven by a strong focus on renewable energy and sustainability. One of the key market drivers is the Indian government's commitment to increasing the share of renewable energy in the overall energy mix. This includes initiatives like the National Hydropower Policy, which aims to promote the development of hydroelectric projects. Additionally, hydropower plays a crucial role in achieving India’s climate change commitments and enhancing energy security, thus driving investments in this sector. In recent times, there has been a notable push towards the modernization of existing hydroelectric plants, improving efficiency, and integrating advanced technologies.
Alongside facilitating private-public hydropower collaborations, the government is simultaneously advancing small-scale hydropower projects aimed at rural community initiatives and augmenting rural electrification. Also, the focus on energy storage and climate-resilient infrastructure is indicative of an emerging trend toward hybrid systems that integrate solar and wind energy with hydropower to enhance energy stability. Untapped areas of the northeastern states are rich in hydropower resources and present unexplored investment opportunities in the India Hydropower Market, thus showcasing the available potential.
The government’s initiatives to enhance the grid infrastructure and incentivize investment in hydropower projects will likely create favorable conditions for new entrants. With a growing need for clean energy and the development of innovative financing models, the hydropower sector in India is set for a transformative phase, positioning itself as a cornerstone of the renewable energy landscape in the country.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Hydropower Market Drivers
Government Initiatives and Policies
The Indian government has been increasingly supportive of the hydropower sector as a part of its commitment to renewable energy sources. Initiatives such as the Hydropower Policy 2018 aim to increase the contribution of hydropower to the country’s energy mix. According to the Ministry of Power, the government targets a generation capacity of 150 gigawatts from hydropower by 2030. This represents a significant growth opportunity for the India Hydropower Market Industry.Moreover, the introduction of various financial incentives and subsidies has encouraged private-sector investments. Non-conventional energy sources, including hydropower, are expected to receive substantial financial backing as the country emphasizes achieving a renewable energy target of 500 gigawatts by 2030. Such government actions signal robust long-term growth potential in the market, further supported by collaborative projects involving established companies like NHPC Limited and SJVN Limited, which play a critical role in driving these initiatives forward.
Increasing Energy Demand
India's growing population and rapid industrialization have led to an escalating demand for electricity, thus driving the market for hydropower. The Central Electricity Authority (CEA) projects that electricity demand in India will exceed 1,800 terawatt-hours by 2030. This increasing demand highlights the potential for the India Hydropower Market Industry to expand significantly. With urbanization rates growing, energy consumption is expected to rise further, thereby prompting investments in renewable energy sources, particularly hydropower, which can provide stable and sustainable energy.Established entities like Tata Power and Adani Green Energy are actively enhancing their hydropower portfolios in response to this increasing demand.
Environmental Sustainability and Climate Change Mitigation
As concerns over climate change intensify, India has been committing to reduce its carbon emissions, which provides a significant impetus to the hydropower sector. The country aims to reduce carbon emissions by 33-35% from 2005 levels by 2030, and hydropower is a critical component of this strategy. The Ministry of New and Renewable Energy (MNRE) has identified hydropower as a clean energy source that can help India achieve its environmental targets.Furthermore, the 2021 Global Status Report on Renewables indicates that renewable energy, including hydropower, accounted for about 25% of total electricity generation in India. This growing focus on eco-friendly energy solutions means that the India Hydropower Market Industry is poised to thrive as the country navigates toward meeting its climate commitments.
Advancements in Technology
Innovations in hydropower technologies, including the development of small-scale and micro-hydropower systems, are making it feasible to harness energy from a variety of water sources throughout India. According to government reports, there are over 10,000 potential sites across the country for small hydro projects, which could contribute an estimated 24,000 megawatts of capacity. Technological advancements not only enhance efficiency but also reduce the environmental impact associated with traditional large-scale hydro plants.Companies such as Jaiprakash Power Ventures Limited and the NHPC are actively implementing newer technologies to optimize energy production at existing plants and increase the contribution of small hydropower projects in the energy mix, further driving growth in the India Hydropower Market Industry.
India Hydropower Market Segment Insights
Hydropower Market Capacity Insights
The India Hydropower Market is projected to experience significant growth due to its diverse capacity segments, which play a crucial role in the overall industry's development. The country's commitment to renewable energy sources is driving investments into various capacities, with significant potential in Mini Hydropower, Micro and Pico Hydropower, Small Hydropower, and Large and Medium Hydropower capacities. Each of these segments contributes uniquely to the energy mix and is aligned with national goals for sustainable development. Mini Hydropower facilities are crucial as they provide energy to remote and rural areas where connection to the grid may not be feasible, thus enhancing energy access and improving the livelihoods of thousands of citizens. This segment is often deployed in hilly terrains of India, utilizing the natural flow of rivers effectively.
Micro and Pico Hydropower systems are equally important for decentralized energy generation, allowing communities to harness local water resources for their own consumption, thereby reducing dependency on fossil fuels and contributing to energy self-sufficiency.Small Hydropower projects are instrumental in generating electricity while minimizing ecological impacts, being designed to coexist with surrounding environments effectively. Their implementation enhances local economies and creates job opportunities through construction and maintenance activities. Meanwhile, Large and Medium Hydropower projects often dominate the landscape due to their substantial energy output and ability to integrate with the national power grid, providing stability and power security to the country. They also play a vital role in peak load management, which is essential for balancing intermittent energy sources.
The growth of the India Hydropower Market is supported by government initiatives aimed at increasing hydropower capacity to meet rising energy demands and achieve carbon reduction targets. Hydropower contributes significantly to the renewable energy targets set by the Indian government, which aims for a substantial increase in installed capacity in the forthcoming years. The combination of government encouragement, technological advancements, and rising environmental awareness is leading to the diversification of this market segment. Moreover, as global trends shift towards cleaner energy sources, the significance of hydropower as a reliable and renewable option cannot be understated.
However, the segment also faces challenges such as environmental concerns, project financing, and community displacement, which need to be addressed to realize its full potential. Overall, the Capacity segment of the India Hydropower Market is set to play a central role in shaping the energy future of the country, aligning with both economic growth and environmental sustainability goals. The intricacies of each capacity type contribute to a robust ecosystem that enables increased energy generation, rural electrification, and a smoother transition towards renewable energy adoption on a large scale.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydropower Market Component Insights
The India Hydropower Market, particularly within the Component segment, shows substantial growth potential as the country looks to expand its renewable energy capabilities. The growth in Electromechanical Equipment, which includes turbines and generators, plays a pivotal role in improving energy efficiency and operational reliability of hydropower plants. Electric and Power Infrastructure is also vital, as it ensures effective transmission and distribution of generated electricity, directly affecting the grid's stability and efficiency. Civil Construction is critical in the development phase, encompassing dam and facility construction that supports increased capacity and durability of hydropower systems.
Additionally, other components contribute to the overall effectiveness and sustainability of hydropower projects. With India targeting significant renewable energy capacity, these segments will cater to the growing demand, reflecting the trends in India's commitment to sustainable energy development. The need for modernization and maintenance of existing infrastructure further amplifies the significance of these components in the India Hydropower Market industry, preparing the groundwork for future advancements and innovations. As per India Hydropower Market statistics, this comprehensive approach positions the market for strategic expansion and resilience against evolving energy demands.
Hydropower Market End User Insights
The India Hydropower Market is significantly shaped by its end user segments, which include Industrial, Utility, and Others. With the country's growing focus on renewable energy sources, the hydropower sector plays a crucial role in meeting energy demands sustainably. The Utility segment is particularly important as it provides electricity to the national grid, making it a backbone of India's energy infrastructure. The Industrial segment utilizes hydropower for manufacturing processes, thereby reducing carbon footprints and operational costs through cleaner energy sources.The Others segment addresses specific local needs and smaller communities, facilitating decentralized energy production and enhancing energy access in rural areas.
The shift towards sustainable energy solutions is driven by government initiatives and policy frameworks aimed at reducing reliance on fossil fuels, thereby promoting hydropower as a clean energy alternative. The overall growth of the India Hydropower Market is further fueled by technological advancements and increasing investments in infrastructure development, creating numerous opportunities for stakeholders across these end user segments.As energy demand continues to rise in India, these segments are poised to play a pivotal role in the nation’s energy landscape, reflecting the market dynamics and trends in the overall industry.
India Hydropower Market Key Players and Competitive Insights
The India Hydropower Market is characterized by a dynamic competitive landscape driven by the increasing demand for renewable energy and the government's focus on sustainable development. With a substantial portion of the country's electricity generated from hydropower sources, various players are vying for market share through innovations in technology, efficiency improvements, and the expansion of existing hydroelectric facilities. The market is attracting investments both from the public and private sectors as stakeholders recognize hydropower's role in meeting India's energy goals while minimizing carbon emissions.
As the world transitions to greener energy sources, the competition among existing companies and new entrants is likely to intensify, encouraging advancements in project execution and operational efficiency.SJVN has established a significant presence within the India Hydropower Market, positioning itself as one of the key players in the sector. With a legacy of numerous completed and ongoing projects, the company's strengths encompass extensive experience in hydroelectric power generation and project management. SJVN is recognized for its commitment to sustainable energy and has a robust framework for ensuring operational efficiency and safety in its projects.
The company’s performance is marked by a steady increase in its generation capacity and a proactive approach toward expanding its portfolio of hydroelectric plants across various states in India. This strategic focus on renewable energy illustrates SJVN's dedication to contributing positively to the country's energy landscape.Narmada Hydroelectric Development Corporation, on the other hand, plays a pivotal role in the India Hydropower Market with its focus on harnessing the potential of the Narmada River. The company is known for its extensive experience in developing hydroelectric projects, which has cemented its position in the industry.
Narmada Hydroelectric Development Corporation’s key services include the generation of electricity through hydropower and the management of related assets, ensuring compliance with environmental standards while meeting consumer demand. The company has been involved in several strategic projects that enhance its capacity and service offerings within the region. This is complemented by a focus on strengthening its operational capabilities and expanding its reach through partnerships and collaborations, which fortify its market presence in the competitive landscape of India’s hydropower sector.
Key Companies in the India Hydropower Market Include
India Hydropower Market Industry Developments
The India Hydropower Market has seen significant developments recently, particularly with the emphasis on renewable energy sources in line with national goals. In November 2023, SJVN Limited started the commercial operation of its 66 MW hydropower project in Uttarakhand, marking a key milestone in expanding renewable energy capacity. Similarly, the Narmada Hydroelectric Development Corporation is enhancing its existing generation facilities, which is expected to increase overall efficiency. The Uttarakhand Jal Vidyut Nigam is actively looking at new projects to expand hydropower capabilities in the region. In March 2022, Andhra Pradesh Power Generation Corporation announced plans to upgrade its hydropower stations to improve output and efficiency.
Mergers and acquisitions within the sector haven't been particularly active, with no notable reports from the specified companies. However, growth in market valuation for companies such as NHPC and Himachal Pradesh Power Corporation indicates a positive trend in investments in hydropower capacities. Over the past few years, the government's push towards renewable energy has significantly influenced the hydropower sector, promoting sustainable practices and technological advancements. Various states, including Telangana and Madhya Pradesh, are also working on new projects to harness hydroelectric resources, ensuring a diversified power mix.
India Hydropower Market Segmentation Insights
Hydropower Market Capacity Outlook
Hydropower Market Component Outlook
Hydropower Market End User Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 25.45(USD Billion) |
| MARKET SIZE 2024 | 30.0(USD Billion) |
| MARKET SIZE 2035 | 55.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 5.665% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | SJVN, Narmada Hydroelectric Development Corporation, Uttarakhand Jal Vidyut Nigam, Andhra Pradesh Power Generation Corporation, Madhya Pradesh Power Generation Company, NHPC, Himachal Pradesh Power Corporation, Telangana State Power Generation Corporation, North Eastern Electric Power Corporation, Chhattisgarh State Power Generation Company, Karnataka Power Corporation, Damodar Valley Corporation, Jammu and Kashmir State Power Development Corporation, Tata Power, Brahmaputra Valley Fertilizer Corporation |
| SEGMENTS COVERED | Capacity, Component, End User |
| KEY MARKET OPPORTUNITIES | Increasing renewable energy demand, Government incentives for hydropower, Modernization of aging infrastructure, Investment in small-scale projects, Cross-border electricity trade possibilities |
| KEY MARKET DYNAMICS | Government policies and incentives, Investment opportunities and funding, Environmental and social impact regulations, Technological advancements and innovations, Aging infrastructure and maintenance challenges |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Hydropower Market is expected to be valued at 30.0 USD Billion in 2024.
By 2035, the India Hydropower Market is projected to reach a value of 55.0 USD Billion.
The India Hydropower Market is expected to grow at a CAGR of 5.665% from 2025 to 2035.
The small hydropower segment is expected to rise from 7.0 USD Billion in 2024 to 15.0 USD Billion by 2035.
The Mini Hydropower segment is valued at 5.0 USD Billion in 2024.
Key players include SJVN, NHPC, Tata Power, and Madhya Pradesh Power Generation Company.
The Micro & Pico Hydropower segment is projected to reach 6.0 USD Billion in 2035.
Emerging trends such as increasing energy demand and investment in renewable resources present growth opportunities.
Regulatory hurdles and environmental concerns may pose challenges to the growth of the hydropower market.
The Large & Medium Hydropower segment has a market size of 15.0 USD Billion in 2024.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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