India | News

J&K’s new hydro policy faces pressure from expanding solar footprint

Author: PPD Team Date: July 29, 2025

As Jammu & Kashmir prepares a new policy to promote small hydroelectric projects, energy experts are raising concerns about the long-term viability of such investments amid the rapid growth of solar power across the region, according to a report by local news outlet Ziraat Times.

The proposed hydro policy focuses on micro and mini hydropower plants under 25 MW, particularly in remote areas, with local panchayats and cooperatives expected to play a role in operations. However, falling solar tariffs and faster deployment are posing a challenge. Under central schemes like Surya Ghar: Muft Bijli Yojana, rooftop solar installations in J&K are rising, backed by subsidies and increasing adoption across households and public buildings.

Simultaneously, Ladakh’s 10 GW solar power plan, with a dedicated transmission link to J&K, may bring low-cost solar into the region’s grid. This risks making new hydropower units economically uncompetitive, especially in already electrified zones.

Experts suggest J&K should focus hydro investments in off-grid or solar-poor regions, and consider hybrid systems with storage to improve year-round reliability.

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