Shimla: $200 mn project for power sector reforms
Shimla, November 7
A tripartite agreement for execution of a $200 million project for facilitating power sector reforms in Himachal Pradesh and increase the share of renewable energy (RE) in the state’s electricity generation was signed today.
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 the Himachal Government and Auguste Tano Kouame, Country Director, India World Bank. This will contribute to the state’s overall aim of adding 10,000 megawatts (10 gigawatts) of additional RE capacity to make the state’s power supply greener.
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.
“The programme will boost local economic activity while replacing fossil-fuel based energy consumption with green energy,” said Kouamé, the World Bank’s Country Director. Moreover, the programme will support Himachal Pradesh to set up a single energy trading desk, thus enabling the sale of surplus hydropower to other states, he added.
“The programme will promote good and sustainable practices within the power utilities to transition them to run a green and low carbon electricity system,” said Surbhi Goyal and Pyush Dogra, team leaders for the programme.
“This shall contribute towards the state’s goal to be one of the first green states in the country.”
In Himachal’s hilly terrain where challenges in maintaining uninterrupted power supply are higher – and restoration may take longer, the programme will help achieve a strengthened transmission and distribution grid. It will introduce advanced technologies such as a demand response management system which is critical during peak load period. The introduction of automated systems will be an important step towards providing clean, reliable 24×7 power supply to citizens, reduce power outages and minimize consumer complaints.
Himachal aims to become a ‘Green State’ by meeting 100 per cent of its energy needs through renewable and green energy by 2030. HP currently meets more than 80 per cent of its energy demands from hydropower.
