· Generates revenue of Rs. 1004 crore from renewable energy projects
Himachal Pradesh, blessed with vast rivers, mountains and natural resources, has long been known as one of India’s major hydropower states. Today, the state is moving a step further by rapidly expanding clean and renewable energy in multiple directions. Under the leadership of Chief Minister Thakur Sukhvinder Singh Sukhu, the government has intensified efforts to strengthen energy generation, diversify renewable sources and ensure that the benefits of green energy reach both the economy and local communities. Through solar expansion, hydropower generation, innovative green technologies and community-based initiatives, the state is steadily advancing towards its goal of becoming a leading green energy state while generating over 2,534 million units of electricity and earning more than Rs.1,004 crore in revenue from major renewable projects.
The state government has set a target of installing 500 megawatts of solar power capacity within two years. Several solar projects in Una and Bilaspur districts, including the Pekhubela, Bhanjal, Aghlor and Baira Dol projects with a combined capacity of 52 MW, have together generated about 114.27 million units of electricity and more than Rs. 34.83 crore in revenue. These projects represent an important step in strengthening solar power generation in the state.
Hydropower continues to remain the backbone of the state’s renewable energy sector and plays a crucial role in supporting the economy. 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. In addition, the completion of 13 hydropower projects has added 1,229 MW of power generation capacity, further strengthening the state’s energy infrastructure.
Along with expanding hydropower, the government is also embracing emerging clean energy technologies. A one MW Green Hydrogen Energy Plant is being developed in Nalagarh in Solan district, marking a step toward future-oriented energy solutions. Another initiative is the launch of India’s first state-supported biochar programme, under which a biochar plant will be established in Neri in Hamirpur district to support climate and sustainability efforts.
The government has also introduced measures to encourage investment in solar energy. Under a first-come-first-served scheme, solar projects ranging from 250 kilowatts to 5 megawatts are being allotted to investors, and the electricity generated from these projects will be purchased by the HP State Electricity Board Limited. So far, 547 investors have been allotted ground-mounted solar power projects with a total capacity of 595.97 MW. In addition, through HIMURJA, solar projects with a capacity of 728.4 MW have been allocated to the Himachal Pradesh Power Corporation Limited, of which projects with a capacity of 150.13 MW have already been initiated.
Ensuring reliable electricity supply in remote and tribal regions has also been a priority. Solar off-grid systems have been installed in 148 households in high-altitude villages of the Kaza region of Lahaul-Spiti district. Battery energy storage systems of 400 Kilowatts are also being installed in Hillor and Dharbas villages of Pangi Valley to ensure uninterrupted electricity supply in tribal areas.
At the grassroots level, the state government has launched the Green Panchayat Programme, which places rural communities at the centre of the renewable energy transition. Under this initiative, 500 kilowatt ground-mounted solar power 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. Twenty percent of the revenue generated from these projects will be used to provide financial support to orphans and widows in the respective panchayats, ensuring that green energy development also contributes to social welfare.
The government has also taken steps to support communities affected by hydropower development and has released financial assistance of Rs. 25.25 crore to provide relief to families and areas impacted by such projects. Policy reforms have also been introduced to encourage investment in small hydropower projects by reducing the royalty rate of free electricity received by the state from projects up to 25 MW from 18-30 percent to 12 percent.
Another major achievement has been the state’s legal victory in the Karcham-Wangtoo hydropower royalty case. The Supreme Court ruled in favour of Himachal Pradesh and directed JSW Energy to increase the royalty paid to the state from 12 percent to 18 percent for the 1,045 MW project. This decision is expected to generate nearly Rs. 150 crore in additional annual revenue for the state.
With annual electricity consumption in the state currently estimated at around 13,000 million units, demand for energy is expected to grow further as industries expand and electric mobility gains momentum. Recognizing this future demand, the state government has set a goal of meeting more than 90 percent of its energy requirements through renewable sources. By strengthening hydropower generation, expanding solar capacity and exploring new technologies such as green hydrogen and biochar, the state is steadily positioning itself at the forefront of India’s clean energy transition.
