Himachal Pradesh eases rules for setting up solar power plants

Diary Times News Service

Shimla, August 5: In a significant move to promote renewable energy, the Himachal Pradesh government has removed the “first come, first served” condition for setting up ground-mounted (grid-connected) solar power plants. This change, with immediate effect, allows applicants to apply for solar power projects at any time of the year, streamlining the process and making it more accessible to interested parties.

Earlier, the Himachal Energy Department’s 2023-24 plan mandated a first-come, first-served basis for project allocation, which often resulted in many applicants being unable to complete the required documentation within the stipulated time. This restriction has now been removed, making possible a more inclusive and flexible application process.

Interested individuals can now apply online for setting up solar power projects ranging from 250 kW to 5 MW, for which the application fee ranges from ten thousand to one lakh rupees. The approval process has also been expedited, with approvals being granted within a week of completion of documentation.

These projects will primarily use private land, creating employment opportunities and making possible the use of barren land. The state electricity board will buy the solar power produced by these grid-connected plants. Him Urja director NS Chauhan confirmed that the removal of the prescribed limit is aimed at facilitating wider participation in renewable energy initiatives.

Permanent residents of Himachal Pradesh are eligible to apply for these projects in person. However, applicants from outside the state can apply only for 5 MW plants. About 5 bighas of land is required to set up a 250 kW plant, while about 20 bighas are required for a 1 MW plant. Projects set up on land near the electricity board’s substation or 11 kV/22 kV line will have lower connection costs. On the contrary, if the private land is far from the substation, the applicant will have to bear the cost of laying the line and power losses.

The State Electricity Board Limited is committed to purchase the energy generated from these projects at the purchase rate fixed by the State Electricity Regulatory Commission at the time of allocation, ensuring a guaranteed market for the power generated.

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