Water has been found to be a major source of energy. Water power is utilized at present mainly as hydro-electricity. It is produced from moving water and from falls with the help of turbines and dynamos.

Hydro-electricity has acquired great significance as a source of energy in the country in the present times and is being put to different uses. The following are the advantages of hydro-electricity in comparison with coal, oil and gas:

(i) It is the cheapest and the most versatile power of all the known energy sources.

(ii) It is a renewable source of energy. Coal, Oil and Gas would be exhausted sooner or later, but water shall remain ever to serve different needs of man and animal.

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(iii) Water is an inexhaustible source of power. Thus, it is a reliable source of power.

(iv) Hydro-electric stations have a long life.

(v) Most of the hydro-electric projects are constructed as multi-purpose projects. The other uses of hydro-electric projects, besides providing power and irrigation, are flood control, navigation, water supply for industrial and domestic uses, promotion of tourism, fishing etc.

(vi) The generation of hydro-electricity does not create problems of pollution.

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Vii although dam construction involves huge capital investment, yet later on its maintenance cost is very less.

Viii Hydel projects are labour-intensive in nature. They help in solving problem of unemployment to some extent. Availability of deap electric power generates employment through industrial and agricultural development.

(ix) The use of hydel power enables a nation in economizing its coal resources.