NCL's Energy Division was established for setting up Mini Hydel Projects for generation of power from renewable sources of energy to meet the ever growing demand of electric power in India.

Energy Division has established two hydel power projects - the first project was completed at the head regulator of Srisailam Right Main Canal & is regularly producing 7.5 MW of power. The second hydel project was constructed on Right Bank High Level Canal of Tungabhadra dam & is generating 8.25 MW. Few more project are in the pipeline. 

In India, hydro power projects with a station capacity of up to 25 Megawatt each fall under the category of Small Hydro Power (SHP). India has an estimated SHP potential of about 20,000 MW.