The World Bank has granted a loan of USD 200 million to Himachal Pradesh to facilitate power sector reforms in the state and accelerate the transition to renewable energy sources. The loan, which has a final maturity of 14.5 years, including a grace period of 4.5 years, aims to support the addition of 10,000 megawatts (10 gigawatts) of additional renewable energy capacity in the region.
Himachal Pradesh, known for its abundant hydropower resources, aspires to become a 'Green State' by meeting 100 percent of its energy needs through renewable and green energy by 2030. At present, the state already fulfills over 80 percent of its energy demands from hydropower.
The funding provided by the World Bank will aid the state in achieving its ambitious renewable energy targets. The financial support will contribute to boosting local economic activity and replacing fossil fuel-based energy consumption with cleaner alternatives. The program will also enable Himachal Pradesh to establish a single energy trading desk, allowing the sale of surplus hydropower to other states.
Auguste Tano Kouame, the World Bank's Country Director for India, emphasized the significance of the program by stating that the program would boost local economic activity and replace fossil-fuel-based energy consumption with green energy. Kouame further highlighted the benefits of establishing a single energy trading desk, stating that it would enhance the state's ability to monetize its surplus hydropower.
In addition to the loan, the power companies in Himachal Pradesh will play a crucial role in empowering women by providing technical training and hands-on exposure to around 700 female apprentices. This initiative aims to create more opportunities for women in the traditionally male-dominated power sector.
Surbhi Goyal and Pyush Dogra, team leaders for the Program, emphasized that the project will promote sustainable practices within the power utilities in the state. By transitioning to a green and low-carbon electricity system, Himachal Pradesh aims to become one of the frontrunners in the country's journey towards sustainable development.
