The hydropower company NHPC announced that trials for the Subansiri Lower project, which runs through Assam and Arunachal Pradesh, would begin in July 2023. The first unit of the project was expected to be commissioned in December 2023.
It was predicted that all eight units would be commissioned by the end of 2024, contributing significantly to the country's energy transition. The project, with a capacity of two gigawatts (GW), had been delayed due to protests and legal disputes related to environmental issues. The National Green Tribunal (NGT) ruled in favour of resuming work in 2019 after an eight-year suspension. The cost of the project had escalated to Rs 212.5 billion, more than three times the original estimate.
In addition, NHPC was finalizing plans to award construction contracts for the Dibang project, which upon completion would become the largest hydroelectric power plant in India, with a capacity of 2.9 GW. The government recognized large dams as a source of "clean energy," forcing provincial power distributors to purchase hydropower. In certain cases, the government would provide financial support for civil construction and flood mitigation work.
Hydropower played a crucial role in offsetting fluctuations in electricity demand and balancing the grid, especially as the share of solar and wind power increased.