HPERC Issues Draft Resource Adequacy Regulations 2025 To Ensure Reliable Power Supply In Himachal Pradesh
Introduction
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has released the Draft Himachal Pradesh Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2025, with the objective of providing reliable and sustainable power supply in the state.[1] As India marches towards becoming the world’s third-largest economy by 2030, Himachal Pradesh aims to synchronize its power infrastructure with increasing demand while incorporating renewable energy and respecting climate targets. These rules focus on strong resource adequacy planning, demand forecasting, and procurement optimization to avoid shortages and ensure energy security.
Explanation (Key Points)
1. Purpose and Objective
- The policies aim at delivering 24×7 reliable power supply by aligning demand growth with adequate generation capacity through long-term (10 years), medium-term (5 years), and short-term (1 year) planning.
- Least-cost procurement orientation, reducing reliance on volatile electricity markets, and integration of renewable energy to meet India’s climate goals under the Nationally Determined Contributions (NDCs).
2. Demand Forecasting
- Sophisticated approaches (AI, machine learning, econometric models) must be used by distribution licensees for hourly/sub-hourly demand estimation based on drivers like agriculture cycles, festivals, EV adoption, and policy impacts (e.g., 24×7 supply demands).
- Three scenarios of demands—most probable, business-as-usual, and aggressive—must be developed to account for uncertainty.
3.Generation Resource Planning
- Capacity Crediting: Solar, wind, hydro, and thermal sources are awarded a “Capacity Credit” (CC) based on their role in peak demand. Solar plants in the southern part of India may have different CCs than those located in Himachal.
- Planning Reserve Margin (PRM): An allowance capacity (percentage above peak demand) needs to be available in order to maintain reliability, founded on indices like Loss of Load Probability (LOLP) and Normalized Energy Not Served (NENS).
4. Procurement Strategies
- Licensees must prioritize long-term contracts (85% of requirements), supplemented by medium-term (10–15%) and short-term (≤5%) contracts. Day-ahead market purchases are excluded from meeting adequacy targets.
- Renewable Integration: Procurement from solar, wind, and hybrid projects must align with Renewable Purchase Obligations (RPOs). Storage solutions (batteries, pumped hydro) are emphasized to manage intermittency.
5. Compliance and Monitoring
- The Long-Term Distribution Resource Adequacy Plans (LT-DRAP) are to be filed by the distribution licensees with the Central Electricity Authority (CEA) for verification and subsequently approved by HPERC.
- Charges on shortfalls in resources are levied as non-compliance charges.
SLDC and RLDC track contracted capacity and release state-level data, including Merit Order Dispatch stacks.
6. Stakeholder Collaboration
- Licensees should refer to central agencies, SLDC, and adjacent states for sharing resources. Transparency is mandated through public sharing of procurement costs and demand projections.
Conclusion
The Draft Resource Adequacy Regulations 2025 are a landmark for Himachal Pradesh’s power sector, addressing existing needs and anticipated future demands. Institutionalizing scientific forecasting of demand, generation mix optimization, and prioritizing high levels of renewable integration are goals of HPERC with the vision of making the state’s power infrastructure safe from shortages and climate risk. These rules are not only consonant with national economic objectives but also make Himachal a leader in planning for renewable energy. The comments of the stakeholders during the 30-day public hearing period will further enhance this framework to make power available stably and equitably to all consumers.
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