Himachal Pradesh Aims To Be First State To Use Only Green, Renewable Energy In India

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Himachal Pradesh will make efforts to ensure that 100 per cent of its energy requirement is met through renewable and green energy – this is the key takeaway of the Budget speech by Chief Minister Jai Ram Thakur on March 4.

As of today, Himachal Pradesh consumes about 12000 million units of power every year. Of this just 2000 million units comes from thermal power plants and the rest is green and renewable. Himachal Pradesh has to use thermal power because of two reasons. First, Himachal has entered into power purchase agreements (PPA) long back with thermal power stations. The obligations under these thermal power stations will gradually reduce but will ultimately end only by 2034. The state also leads in small hydro generation, although costs there are an issue.

Under the PPAs, the government is obliged to pay for both fixed costs and actual consumption charges.

The second reason is that the state uses some thermal power as ‘round the clock power’ as it is cheaper than renewable power.

The Himachal Pradesh government says that the target of becoming the first Green State is achievable and it can come out of the PPA obligations from thermal power plants. It says that the thermal obligations need to be underwritten or bought out. The way to do this may be through a grand bargain with the G-7 countries as this will be the just and fair cost. This will also be a part of climate finance.

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The government has informed that Chief Minister Jai Ram Thakur has already raised the issue with the Prime Minister and another senior minister in the Government of India. Himachal Pradesh Chief Secretary Ram Subhag Singh also had a discussion with the World Bank Country Director and Vice President, and the Vice Chairman and Members of NITI Aayog.

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The Himachal Pradesh government says that this will not just help fight climate change but ensure that everything manufactured in Himachal Pradesh is certified as sustainable and green. The benefits of this with regards to the manufactured products will be immense.