Himachal Pradesh Secures USD 200 Million World Bank Funding for Green Energy

In a significant development, the Government of India (GoI) and the Government of Himachal Pradesh have inked a ground breaking agreement with the World Bank, securing a USD 200 million project aimed at revolutionizing the power sector and boosting renewable energy in Himachal Pradesh. 

The initiative aligns with Himachal Pradesh's ambitious goal of achieving 100 percent renewable and green energy reliance by 2030.

The World Bank's Himachal Pradesh Power Sector Development Program is set to play a pivotal role in enhancing the utilization of existing renewable resources, particularly hydropower, while also introducing new elements like 150 megawatts of solar capacity. This transition is expected to reduce greenhouse gas emissions by over 190,000 metric tons annually.

The official agreement was signed by K Manicka Raj, Joint Secretary, Department of Economic Affairs, Ministry of Finance, representing the GoI; Harikesh Meena, Director (Energy), representing the Government of Himachal Pradesh and Auguste Tano Kouame, Country Director, India, on behalf of the World Bank.

Auguste Tano Kouamé, the World Bank’s Country Director for India, expressed his enthusiasm for the project, stating, "The Program will boost local economic activity while replacing fossil-fuel based energy consumption with green energy. Moreover, the Program will support the state to set up a single energy trading desk, thus enabling the sale of surplus hydropower to other states."

Himachal Pradesh's challenging terrain often makes maintaining a reliable power supply a complex task. This initiative will focus on strengthening the transmission and distribution grid and introducing advanced technologies, including a demand response management system and seamless access to renewable energy. Automation is expected to reduce power outages and enhance the reliability of the 24x7 power supply.

"The Program will promote good and sustainable practices within the power utilities in the state to transition them to run a green and low carbon electricity system," emphasized Surbhi Goyal and Pyush Dogra, team leaders for the Program.

The USD 200 million loan from the International Bank for Reconstruction and Development (IBRD) carries a final maturity of 14.5 years, including a grace period of 4.5 years. This funding injection is expected to catalyse a transformation in Himachal Pradesh's energy landscape.