Himachal Pradesh has generated over 2,534 million units of electricity from major renewable energy projects, earning more than Rs. 1,004 crore as the state continues to expand its green energy capacity.
Hydropower remains the backbone of the state’s renewable energy sector. Major projects such as the 100 MW Sainj Hydroelectric Project in Kullu district, the 65 MW Kashang Stage-I Project in Kinnaur district and the 111 MW Sawra-Kuddu Project in Shimla district have together generated around 2,419.97 million units of electricity and nearly Rs. 969.95 crore in revenue. The completion of 13 hydropower projects has also added 1,229 MW to the state’s power generation capacity.
Alongside hydropower, the state government is expanding solar energy projects. It has set a target of installing 500 MW of solar power capacity within the next two years. Solar projects in Una and Bilaspur districts, including Pekhubela, Bhanjal, Aghlor and Baira Dol with a combined capacity of 52 MW, have together generated around 114.27 million units of electricity and more than Rs. 34.83 crore in revenue.
To promote investment in solar power, the government has introduced a first-come-first-served scheme under which projects ranging from 250 kilowatts to 5 megawatts are being allotted to investors. The electricity produced from these projects will be purchased by Himachal Pradesh State Electricity Board Limited. So far, 547 investors have been allotted ground-mounted solar projects with a combined capacity of 595.97 MW.
Through Himachal Pradesh Energy Development Agency, solar projects with a capacity of 728.4 MW have also been allocated to Himachal Pradesh Power Corporation Limited, out of which projects with a capacity of 150.13 MW have already been initiated.
The government is also exploring emerging green technologies. A one megawatt green hydrogen energy plant is being developed in Nalagarh in Solan district, while a biochar plant will be established in Neri in Hamirpur district under a state-supported programme aimed at strengthening climate action.
Efforts are also being made to ensure reliable electricity supply in remote tribal areas. Solar off-grid systems have been installed in 148 households in high-altitude villages of the Kaza region in Lahaul-Spiti district. Battery energy storage systems of 400 kilowatts are also being installed in Hillor and Dharbas villages of the Pangi Valley to ensure uninterrupted power supply.
At the grassroots level, the state government has launched the Green Panchayat Programme to involve rural communities in renewable energy generation. Under the programme, 500 kilowatt ground-mounted solar plants will be installed in gram panchayats across the state with a target of generating 150 MW of solar power. In the first phase, projects have been approved in 24 panchayats and work has begun in 16 of them.
The government has also released Rs. 25.25 crore in financial assistance to support communities affected by hydropower development and has introduced policy reforms to encourage investment in small hydropower projects by reducing the royalty rate of free electricity from projects up to 25 MW from 18–30 percent to 12 percent.
In another major development, the Supreme Court of India ruled in favour of Himachal Pradesh in the royalty dispute related to the Karcham Wangtoo Hydroelectric Plant and directed JSW Energy to increase the royalty paid to the state from 12 percent to 18 percent for the 1,045 MW project. The decision is expected to generate around Rs. 150 crore in additional annual revenue for the state.
With the state’s annual electricity consumption currently estimated at around 13,000 million units and demand expected to rise in the coming years, the government has set a goal of meeting more than 90 percent of its energy requirements through renewable sources.
