Hydropower output may rise 10% on bountiful rain

Brimming reservoirs may lead to 10% more hydropower in FY26, the second year in a row

- Rituraj Baruah & Vijay C. Roy

Heavy monsoon rains across India may be creating havoc on the roads, but the brimming reservoirs are expected to deliver higher hydropower output for a second consecutive year.

India's electricity generation from hydropower plants is expected to increase by around 10% in fiscal year 2026 (FY26), according to ratings agency Icra Ltd.

Hydropower generation had similarly increased by about 10% in FY25 after shrinking 17% in the year before due to inadequate monsoon rains, according to the Central Electricity Authority (CEA).

The improved conditions are significant as India's 49 gigawatt (GW) hydropower generation capacity provides stability to the electricity grid given its quicker ramp-up and ramp-down capability than other sources of electricity.

In the ongoing monsoon season (June 1 to August 19), India received 623.1 mm of rainfall, higher than the normal level of 611.8 mm for the period.