Himachal Pradesh Power Sector Development Program

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The development objective of the Himachal Pradesh (HP) Power Sector Development Program (HPPSDP) Program-for-Results for India is to increase renewable energy (RE) penetration and strengthen the power sector institutions in HP. The program envisages to increase penetration of RE resources through optimization of the state’s current and present generation base. This includes bundling hydropower with variable non-hydro RE (such as solar and wind) and implementing a mix of reform-oriented measures and investments, although the latter is restricted to selected 10 out of 12 districts in HP. Using a multipronged strategy, the program supports the development of new solar installations, establishes a single energy trading desk, advances deployment of the state-of-the-art transmission and distribution (T and D) network along with upgradation of its load dispatch operation system, inter alia. Specifically, HPPSDP supports the state through three result areas (RAs). RA 1: developing a low carbon power sector in HP by enhancing flexibility and diversification of RE sources; RA 2: strengthening of the state’s power network to enhance its reliability and resilience; and RA 3: strengthening environmental, social, financial management, corporate governance, and procurement capabilities of the state power sector utilities and agencies.