Extreme weather events in Uttarakhand could potentially destroy or seriously delay hydroelectric power plants worth Rs 70,150 crore, suggests a report released on Wednesday by the think tank Climate Risk Horizons.

The report, Assessing the Vulnerability of Hydroelectric Power Plants in Uttarakhand, notes that the state is highly susceptible to extreme weather events including flash floods, landslides, glacial lake outbursts and drought.

There are 18 operational hydroelectric power plants in the state with many more in development, the report added. Extreme weather events could damage infrastructure, leading to project delays and significant cost escalations.

The report was based on a case study of the 2021 flash floods in Chamoli district, which destroyed the Tapovan-Vishnugad hydropower project. “The initial project cost of Rs 2,978 crore has more than doubled due to the flash floods,” the report observed.

The authors identified eight major river basins and assigned them ratings from high to low risk based on the population density of nearby settlements, nearby glacial discharge patterns and damage assessment of past flash floods.

The report suggests that the Joshimath-Srinagar basin is the most vulnerable to natural disasters, followed by the Tehri-Uttarkashi and Pithoragarh-Bageshwar basins. There are 15 hydropower projects currently in development across these three basins worth Rs 70,150 crore.

“Climate-related disasters pose significant financial risks to infrastructure projects in a fragile region such as the Himalayas,” the report states. “However, sufficient financial provision is not being made to manage these risks.”

According to the report, more risk assessment and better management was needed, including the development of financial insurance and contingency bonds.

The researchers emphasised the importance of climate-resilient infrastructure and investment in water resource management plans, and suggested implementing risk monitoring into the project designs.

“Investing in climate risk-proofing measures or disaster prevention not only saves lives and infrastructure; such investments also make financial sense,” the authors said. “The cost of climate risk-proofing/prevention is almost always less than the cost of restoration and recovery.”

In an accompanying press release, the lead author of the report, Sagar Asapur, said that three steps were essential for all hydropower investments: avoiding high-risk zones, incorporating climate-proofing strategies and embracing innovative financial mechanisms.