The World Bank has signed a $200 million project with the government of India and the government of Himachal Pradesh to facilitate power sector reforms and increase the share of renewable energy in Himachal Pradesh’s electricity generation. This initiative aligns with the state’s overarching goal of incorporating an additional 10,000 MW of renewable energy capacity, advancing the transition to a more sustainable power supply.

The Himachal Pradesh Power Sector Development Programme by the World Bank aims to improve the state’s utilisation of its current renewable energy sources, such as hydropower, and support the expansion of its renewable energy portfolio. Furthermore, the programme will assist Himachal Pradesh in establishing a centralised energy trading desk, facilitating the sale of excess hydropower to other states.

In July 2023, World Bank’s board of executive directors approved $1.5 billion in financing to accelerate India’s development of low-carbon energy to help India promote low-carbon energy by scaling up renewable energy, developing green hydrogen, and stimulating climate finance for low-carbon energy investments.

REGlobal’s Views: The state of Himachal Pradesh in India has significant untapped renewable energy potential. Meanwhile, its hydro power segment has also suffered due to project delays and financing issues. Thus, the World Bank funding will help the state to revamp its power sector particularly for renewable energy development and further uptake of hydro power.