The World Bank has approved a loan of $200 million to the government of Himachal Pradesh to enhance the grid and increase the share of renewable energy (RE) in the state’s electricity generation. This will contribute to the state’s overall aim of adding 10 GW of additional RE capacity to make the state’s power supply greener.
Himachal Pradesh (HP) aims to meet 100% of its energy needs through renewable and green energy by 2030. The state currently meets more than 80% 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 MW of solar capacity in the state, reducing greenhouse gas emissions by more than 190,000 metric tons per year,” stated World Bank.
The Program will support HP to set up a single energy trading desk, thus enabling the sale of surplus hydropower to other states.
More importantly, the program will provide a template for the Indian power market for underwriting new investments in renewable energy.
The Program will help strengthen the transmission and distribution grid, and introduce advanced technologies such as a demand response management system and seamless access to RE.
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.
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