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Himachal Pradesh Regulator Releases Draft Framework for Resource Adequacy in Himachal Pradesh

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has introduced the draft Framework for Resource Adequacy Regulations, 2025, aiming to ensure sufficient electricity capacity additions to meet projected demand through an optimized mix of energy contracts at the lowest cost. The regulations will apply to generating companies, distribution licensees, the state load dispatch center (SLDC), transmission utilities, and other grid-connected entities in the state.

Key Provisions of the Framework

1. Demand Forecasting & Assessment
   • Distribution licensees must prepare hourly and sub-hourly demand forecasts, incorporating factors like category-wise consumption, captive and open access loads, and historical seasonal variations.
   • Short-term demand forecasts will rely on historical data and load research studies, considering demand response, load shifting, and time-of-use analysis.
   • Forecasts must be submitted annually to the SLDC by April 30.
2. General Resource Planning
   • Distribution licensees must plan power procurement considering existing, upcoming, and retiring generation resources.
   • The Planning Reserve Margin (PRM) will ensure sufficient capacity beyond the state’s share in national peak demand.
   • The Central Electricity Authority (CEA) and National Load Despatch Centre (NLDC) will provide long-term and short-term national resource adequacy plans (LT-NRAP & ST-NRAP) to guide procurement strategies.
3. Renewable Energy Integration
   • Distribution licensees must optimize power procurement with a mix that ensures grid stability and compliance with Renewable Purchase Obligations (RPOs).
   • Power from wind, solar, hybrid, and round-the-clock sources must be procured through tariff-based competitive bidding, as per Ministry of Power guidelines.
   • Least-cost modeling will be used to prevent stranded capacity and ensure cost-efficient procurement.
4. Procurement Strategy & Emergency Measures
   • Distribution licensees must secure long, medium, and short-term power contracts aligned with their rolling annual plan.
   • Additional procurement will be allowed if unexpected demand surges, supply failures, or costlier-than-expected power sourcing arise.
   • Emergency power procurement is permitted to maintain grid stability.
5. Data Maintenance & Compliance
   • Distribution licensees must maintain demand assessment data, including at least 10 years of consumer consumption profiles.
   • Contracted capacity details must be submitted to SLDC and the State Transmission Utility (STU) for verification.
   • The procurement plan requires approval from HPERC before implementation.

Background & Future Implications

In December 2024, HPERC approved the Himachal Pradesh State Electricity Board’s procurement of 550 MW ISTS-connected solar power from SECI for 25 years. The new resource adequacy framework aims to further improve electricity planning, reliability, and integration of renewables in the state’s power mix.