HP Aims to Be India’s First Green Energy State by 2026, Proposes INR 905 Crore for Energy

Himachal Pradesh is set to become India’s first Green Energy State by 2026, with a strong focus on renewable energy expansion and sustainable infrastructure.

This was disclosed by Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu while presenting the State Budget. Dwelling on the solar power initiatives in the state, he stated that the government is committed to increasing solar power generation, with the Himachal Pradesh Power Corporation Limited (HPPCL) planning to establish 500 MW of solar capacity projects by 2026-27.

To this end, the Himachal Pradesh government has proposed INR 905 crore for the energy sector in the 2025-26 budget, prioritising renewable energy expansion, green transportation, and sustainable infrastructure. By leveraging solar and hydroelectric power, promoting electric mobility, and integrating emerging technologies like drones, the state is making steady progress toward achieving its ambitious target.

Currently, around 626 MW of solar projects are in various stages of development. A significant initiative in this direction is the establishment of a 200 MW solar power project in Kangra’s Damtal region, which is expected to be completed within a year. This project will generate approximately 320 million units of electricity annually, contributing nearly INR 150 crore in revenue per year. Additionally, under the 'Green Panchayat Scheme,' 100 panchayats will each receive 500 kW solar projects, promoting localized green energy solutions.

The state government is also accelerating hydroelectric power development. The long-delayed 450 MW Shongtong Hydroelectric Project, which has been pending for over 15 years, is now on track to be commissioned by December 2026. Once operational, it is expected to generate annual revenue of approximately INR 1,000 crore. Similarly, efforts are being expedited to complete the 130 MW Integrated Kashang Hydroelectric Project by June 2026, which will generate around INR 350 crore in revenue annually.

To further enhance the stability and reliability of the power grid, HPPCL has been allocated the Renukaji (1,630 MW) and Thana-Plau (150 MW) pump storage projects, which will function as hydro batteries. The state has also received proposals from organizations such as BBMB (13,000 MW), SJVNL (2,500 MW), NTPC (2,400 MW), and private developers (2,000 MW) for additional pump storage projects, which will be evaluated for feasibility and merit.

The Himachal Pradesh government is taking significant steps to revitalize the power sector and attract investments. A cabinet sub-committee has been formed to assess challenges in power generation and recommend solutions, and its proposals will guide the government’s strategies for the energy sector. To boost hydroelectric development, the state has invited investments from both central and state government enterprises. Notably, the Telangana government has shown interest in investing in Himachal Pradesh’s hydro projects, and discussions are underway to formalize collaboration through a Memorandum of Understanding (MoU). Additionally, the government aims to encourage private sector investments in renewable energy, accelerating progress toward achieving a Green Himachal.

Infrastructure development in electricity transmission is another critical area of focus. The government has set a target to complete work on 220 kV substations in Kangu (Mandi district) and Tahliwal (Una district) at a total investment of INR 103 crore. Moreover, two 132 kV substations are planned in Dharampur (Mandi district) and Barshaini (Kullu district), with an investment of INR 82 crore.

In the upcoming financial year, six new 33 kV and 11 kV substations will be constructed in Kangra district at locations such as Ganog (Nurpur), Karla Kotla (Dehra), Majheen (Jwalamukhi), Moki (Indora), Samloti (Nagrota Bagwan), and Ther (Jwalamukhi). Additionally, the government will complete 78 circuit kilometers of Extra High Voltage (EHV) transmission lines, including the 132 kV Barshaini-Charor line in Kullu district and the 400 kV Kutehar-Lilo line in Chamba district. The construction of a 200 MVA 220/132 kV substation in Una district, with an estimated cost of INR 88.22 crore, will also commence.

As part of its commitment to green transportation, the state is rapidly expanding electric vehicle infrastructure. The transport sector is a significant contributor to greenhouse gas emissions, accounting for approximately 16-20 percent of total emissions. To address this, the government is in the process of replacing diesel buses with electric buses. An additional 500 e-buses will be procured in the 2025-26 financial year, and charging stations will be expanded. As part of this effort, 80 petrol pumps will be equipped with EV charging stations, and 41 additional locations along the Green Corridor will have charging infrastructure set up under the Public-Private Partnership (PPP) model.

The government has also mandated that all government offices in Hamirpur district transition to electric vehicles, setting an example for clean energy adoption.

The state government is also focusing on integrating renewable energy into essential services. The Himachal Pradesh Energy Development Agency (HIMURJA) will install solar panels to support various water supply, irrigation, and sewerage projects. To further encourage private participation in solar energy, the government will provide a 5 percent interest subsidy for establishing solar projects ranging from 250 kW to 1 MW in tribal areas and remote locations such as Bara Bhangal, Dodra Kwar, Kupvi, and Tisa. In non-tribal regions, projects between 250 kW and 1 MW will receive a 4 percent interest subsidy, while projects exceeding 1 MW will be eligible for a 3 percent interest subsidy.

Environmental sustainability remains a key priority. A "Climate Resilient Villages (CRV) Programme" will be launched to develop 100 climate-sensitive villages using climate-smart agriculture and renewable energy microgrids. 

With these initiatives, Himachal Pradesh is making rapid strides toward becoming India’s first Green Energy State by 2026. By focusing on renewable energy, modernising infrastructure, promoting electric mobility, and integrating emerging technologies, the state is setting a benchmark for sustainable development in India.