Himachal Pradesh is taking efforts and initiatives to become to meet all its energy requirements through renewable and green energy. Chief Minister Jai Ram Thakur said in his budget speech earlier this month that the state is trying to the first green state in the country. Himachal Pradesh consumes about 12,000 million units of power every year. Of this just 2,000 million units come from thermal power plants and the rest is green and renewable. Himachal Pradesh has to use thermal power because of two reasons. First, the state has entered into power purchase agreements (PPA) long ago with thermal power stations. Though the obligations under these PPAs will gradually reduce but will end only by 2034. Under the PPAs, the government is obliged to pay for both fixed costs and actual consumption charges. The state also has small-level hydro power generation but cost is an issue. The state government is confident that it can become the first green state in the country, and can come out of the PPA obligations. 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. The government has informed that the chief minister has already raised the issue with the prime minister and another Union minister. 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. 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.
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Panoramic view of the Shimla Hills; Courtesy: Wikipedia
