Sharavathi Hydroelectric Project: The cost of energy transition Premium

Protests against the Sharavathi Pumped Storage Hydroelectric Project in the Western Ghats just got new life

The Karnataka High Court, earlier this month, directed the State government to stop work in the forest area for the Sharavathi Pumped Storage Hydroelectric Project, until further orders. A group of environmentalists had moved the Court, challenging the State Wildlife Board’s approval for the proposed project in the Sharavathi Lion-Tailed Macaque Wildlife Sanctuary which is part of the Western Ghats, and a biodiversity hotspot. The Court’s order boosted the morale of the environmentalists, who have been opposing the project since it was proposed in 2017.

The Karnataka Power Corporation Limited (KPCL) proposed the project in the valley of the Sharavathi river, which flows for about 130 km through the Western Ghats before reaching the Arabian sea. The river is already the State’s primary hydel power source, with four major power stations operating in its valley.

The KPCL aims to generate 2,000 MW through this project to meet peak-hour energy demands, which can touch 18,000 MW daily. The project has been defended on the grounds that the Central Electricity Authority has recommended a transition to clean energy, targeting 50% non-fossil fuel capacity by 2030. Th the cost of the project which was estimated to be around ₹4,800 crore in 2017, has gone up to nearly ₹10,240 crore.

Furthermore, while the project has received the approval of the State Wildlife Board and an in-principle approval from the National Board of Wildlife (NBWL), forest and environmental clearances are still pending.

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