The World Bank will provide USD 200 million (about Rs 1,600 crore loan) to finance the Himachal Power Sector Development Program to bring improvements in renewable energy integration in the state, Chief Minister Sukhvinder Singh Sukhu said on Wednesday.
With the addition of state equity, the total outlay for the programme would be Rs 2,000 crore and the World Bank funding is expected to be available by August 2023 for a duration of five years up to 2028, he said in a statement issued.
He also informed that the World Bank Board has approved the programme on June 27, 2023, in Washington. Improvements in the utilisation of renewable energy, reliability of grid at transmission and distribution level and strengthening of the institutional capacities of the various power utilities/agencies of the state would be undertaken under the programme, he said.
Efforts will be made towards the promotion of integrated resource planning of the power sector, piloting demand response management, improving the technical utilisation of existing hydropower assets to facilitate increased integration with other sources of renewable energy and establishing a single trading, he added.
Sukhu said that the Programme also aimed at installing new capacities of about 200 MW in solar generation through Himachal Pradesh Power Corporation Limited (HPPCL) and Himachal Pradesh Energy Development Agency (HIMURJA).
It will also focus on strengthening the power network within the state and transmission by HPPTCL (Himachal Pradesh Power Transmission Corporation Ltd) and distribution by HPSEBL (Himachal Pradesh State Electricity Board) in 13 towns for optimal trading to meet the demand.
The programme would strengthen the environmental and social systems applicable to the state's power sector for better monitoring and evaluation of these aspects. It will help the state to develop a uniform environment and social policy and procedures for the power sector utilities and provide benchmarks for the sustainable development of renewable energy, the statement said.
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