Himachal Pradesh Launches Program to Deploy 28 MW of Solar Projects

The program intends to facilitate the development of solar projects in Himachal Pradesh by making use of barren lands

September 11, 2019


The Himachal Pradesh nodal agency, HIMURJA, has announced a program to develop 28 MW of solar projects in the state. The state has invited applicants from within Himachal Pradesh to submit applications for the development of solar projects of sizes ranging from 250 kW to 500 kW.

The program is in line with the state’s efforts to increase entrepreneurship among farmers and land-owners.

Prospective applicants for this program will be selected on a first-come, first-serve basis. All solar projects are to be developed by the selected applicants on private land or land acquired on a lease basis. Once commissioned, these projects can sell the power produced to Himachal Pradesh State Electricity Board (HPSEB) at a tariff approved by the state electricity regulatory commission.

According to the state program, only one project would be allocated to an applicant who would need to prove the ownership or the acquisition of land to set up the solar project.

Further, the applicant would also need to prove his or her financial ability to develop such projects, considering the per MW cost of solar projects being ₹40 million ($556,000). Applicants would need to show that they have sufficient funds to meet 75% of the system cost.

Projects would ideally be needed to be developed near HPSEB sub-stations or near the 11 kV/22 kV HT distribution feeders. However, in case the availability of the land is not in close vicinity of existing HPSEB substation or distribution feeder, the developer may set up an 11 kV/33 kV feeder from the proposed project site up to the nearest substation.

The policy will be in force until December 31, 2020.

Recently, the Government of Himachal Pradesh signed two agreements for setting up 250 MW of solar power projects in the state. The estimated cost of the projects is ₹10 billion (~$139.7 million).

Image credit: Himurja

Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.