World Bank Signs $200M Project to Increase Renewable Energy Penetration in Himachal Pradesh
Energy
Himachal Pradesh (HP) aims to become a ‘Green State’ by meeting 100 percent of its energy needs through renewable and green energy by 2030. HP currently meets more than 80 percent of its energy demands from hydropower. The World Bank’s Himachal Pradesh Power Sector Development Program will help the state enhance the utilization of its existing RE resources, including hydropower, and help to diversify its RE resources further. For instance, it will add 150 megawatts of solar capacity in the state, reducing greenhouse gas emissions by more than 190,000 metric tons per year.
The agreement was signed by K Manicka Raj, Joint Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Harikesh Meena, Director (Energy), on behalf of the Government of Himachal Pradesh; and Auguste Tano Kouame, Country Director, India on behalf of the World Bank.
More importantly, the Program will provide a template for the Indian power market for underwriting new investments in renewable energy.
In Himachal’s hilly terrain where challenges in maintaining uninterrupted power supply are higher – and restoration in case of a breakdown may take longer than elsewhere – the Program will help achieve a strengthened transmission and distribution grid. It will introduce advanced technologies such as a demand response management system and seamless access to RE. This is critical during peak load periods when the state must otherwise rely on expensive fossil-fuel based power. The introduction of automated systems will be an important step towards providing clean, reliable 24x7 power supply to citizens, reduce power outages, and minimize consumer complaints.
The Program will help strengthen environmental, social, financial management, corporate governance, and procurement capabilities of the state’s power sector utilities and agencies. In addition, it will contribute towards creating job opportunities in specialized technical and managerial fields in the sector, especially for women. HP power utilities will train around 700 female apprentices throughout the lifespan of the program, giving them hands-on exposure and training in technical roles within the power sector. This will build on the National Apprentice Promotion Scheme implemented by the Ministry of Skill Development and Entrepreneurship.
The $200 million loan from the International Bank for Reconstruction and Development (IBRD) has a final maturity of 14.5 years including a grace period of 4.5 years.