Guest Column: Himachal set to become green energy powerhouse

Nationally determined contributions (NDCs) are a non-binding action plan of a country on climate change mitigation, adaptation and green house gas emission reductions. Prime Minister Narendra Modi had presented the gift of ‘Panchamrit’ – the five nectar elements --- at COP 26 in Glasgow to deal with the challenges of climate change. These were later updated and adopted as NDCs for our country.

Himachal Pradesh chief minister Sukhvinder Singh Sukhu, while presenting the budget for 2023-24, resolved to take effective steps for transition of Himachal Pradesh as ‘Green Energy State’ by March 31, 2026. This is in consonance with NDCs.

Tackling the PPA hurdle

Three important steps are being taken for this transition. First, the state consumes about 13,000 Million Units (MUs) of power every year. Out of this a little less than 2,000 MUs are coming from the thermal source and the rest are from renewable sources. The use of thermal power is due to the obligations of the Power Purchase Agreements (PPAs) signed by the state with thermal power stations in the past. If Himachal comes out of these obligations, then the entire power for consumption in the state will be from renewable / green sources. This will lead to Himachal being a ‘Green Energy State’. It will also enable to have the proposed eco-marking of all industrial goods manufactured in the state, as these will be manufactured using only the green power. To achieve this, there has to a buyback of thermal obligation. The way it can be done is to add in the power purchase basket more solar and hydro power and to sell the thermal obligation in the energy market or surrender it. There is a need to invest in this ‘just transition’.

Second, is all about harnessing the solar power. It is disconcerting that the state generates just 56 MW of solar power. A target of 500 MW of solar power has now been fixed for 2023-24. This will be achieved through central PSUs, state PSUs and private sector investments. Under a new scheme, the youth of the state will be given an initial assistance of 40% on the capital cost to set up solar power projects for capacities ranging from 250 KW to 2 MW. State power distribution company, HPSEBL will buy electricity generated from these projects. A rough calculation shows that with an initial assistance of 40% and taking debt equity ratio at 70:30, the per month income for a youth setting up a 1 MW solar plant will be around ₹ 2 lakh taking all costs, debt repayment and returns on fixed assets into consideration. This can be a game changer.

Thrust on solar power

In next four to five years with sustained efforts and right policies, Himachal should be able to generate more than 2,000 MW of solar power or in other words 3,000 to 4,000 MUs of electricity in next four to five years. With 6 to 7 % growth in power demand, it roughly translates to about 25% of total consumption. In addition, the state will have a capacity addition of 1,800 MW of hydro power by 2025-26. It will, therefore, be well within the reach for the state to be a ‘Green Energy State’ by March 31, 2026. The only constraint remains the PPAs signed in the past for supply of thermal power for which either surrendering or selling them will be the key. It may, however, be kept in mind that generation of renewable power in the state does not necessarily mean that the distribution company will purchase it for consumption of its consumers. The company will also have to analyse the cost for buying such power, but with right policies in place, this will not be a constraint.

EV push likely to be a gamechanger

The third step taken by the state is big push to electric vehicles (EVs). The present number of buses with HRTC is 3,142. Of these, 1,500 will be replaced with EV buses by 2026. The challenge will be to nudge the major manufacturers of EV buses to develop a prototype of Type 2 EV buses that are fit for plying in hilly areas with a proper angle of approach, angle of departure, skirt height and ground clearance for such terrain. The state has changed the entire car fleet of the transport department to EVs. There is also a plan to replace all the vehicles of secretariat and few more departments with EVs.

Six major highways in the state will now be developed as ‘green corridors’ for EVs of all kind. These are Parwanoo – Nalagarh – Una – Hamirpur - Dehra - Mubarakpur – Nurpur, Paonta – Nahan – Solan – Shimla, Shimla – Rampur – Pooh – Kaza – Losar, Shimla – Bilaspur – Kangra – Nurpur – Chamba, Mandi – Palampur – Kangra – Pathankot and Kiratpur – Mandi – Kullu - Keylong – Zingzingbar. These corridors will have e-charging infrastructure in coming two to three years for all kinds of EVs.

Incentives up to 50% have been announced for purchase of certain categories of buses and trucks and establishing the charging stations. At the same time, it has also been planned that there is an adequate availability of skilled manpower for the maintenance of EVs and charging infrastructure. This will be done by devising suitable courses in the technical institutions. These are some bold moves by the state in the sectors of power and transport.

Bill Gates in his book, ‘How to Avoid a Climate Disaster’ points out that contributors of emission of green house gases leading to global warming and climate change and their percentages are: (a) the way we make things, particularly cement, steel and plastic - 31%; (b) The plugging in – electricity 27%; (c) How we grow things – plants and animals 19%; (d) Getting around – transport 16% and (e) Warming, Cooling and Refrigerator – 7%. It can be seen that out of these, two critical components have been touched with the recent initiatives in Himachal Pradesh.

There is a need for all of us to try to make a difference. All stakeholders, be it citizens, the policy makers, the education institutions, the advocacy groups and NGOs have important role to play. Steps by the governments do create a thoughtful and constructive atmosphere for conversation on climate change. If a small hill state can take such decisions, it can be appreciated that as a country we can achieve a lot more in over next five to 10 years. Next decade should focus on policies, research and for creating structures for a green future so that the world is a better place to live.

The writer is a principal adviser to chief minister, Himachal Pradesh. Views expressed are personal.