HPERC Issues Draft Resource Adequacy Regulations 2025 To Ensure Reliable Power Supply In Himachal Pradesh

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued a draft notification proposing the Himachal Pradesh Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2025. The regulation aims to ensure the availability of adequate electricity supply to meet growing demand, aligning with India’s economic expansion. It emphasizes reliable 24×7 electricity supply through a well-balanced mix of long-term, medium-term, and short-term contracts while keeping costs low and avoiding excessive dependence on the electricity market. Additionally, the regulation supports India’s climate commitments under the Nationally Determined Contributions (NDCs).

The draft regulations apply to generating companies, distribution licensees, the State Load Dispatch Centre, the State Transmission Utility, and other grid-connected entities in Himachal Pradesh. The main objective is to establish a framework for planning generation and transmission resources to meet projected electricity demand. This includes demand assessment, forecasting, procurement planning, monitoring, and compliance. The regulations define key concepts such as capacity credit, planning reserve margin, and loss of load probability, ensuring that electricity generation meets reliability standards.

The framework introduces a structured approach to demand assessment and forecasting. Distribution licensees are required to prepare demand projections using methods such as trend analysis, econometric modeling, and artificial intelligence-based forecasting. These projections should consider factors like seasonal variations, policy changes, and the increasing adoption of electric vehicles and distributed energy resources. The regulations also require demand forecasts for different time horizons, including short-term (one year), medium-term (five years), and long-term (ten years).

To meet demand reliably, the regulations emphasize proper generation resource planning. Distribution licensees must account for existing and planned capacity, reserve margins, and future generation requirements. They must also consider different power sources, including renewable energy, hydroelectric power, and storage systems. The regulation mandates a balanced power procurement strategy, ensuring a mix of long-term, medium-term, and short-term contracts while avoiding stranded capacity.

The draft regulations also include guidelines for procurement planning. Distribution companies must optimize their power purchase agreements to minimize costs while ensuring reliability. They are encouraged to procure renewable energy through competitive bidding processes and explore power trading mechanisms for inter-state capacity sharing. Any new long-term or medium-term power purchase agreements must receive regulatory approval to ensure economic viability and fairness.

To maintain compliance, the regulations require continuous monitoring of resource adequacy. Distribution licensees must submit annual rolling plans and demand forecasts to the State Load Dispatch Centre (SLDC) and other regulatory authorities. The SLDC will aggregate state-wide data and coordinate with national agencies for resource adequacy planning. Failure to meet resource adequacy requirements may result in penalties.

The HPERC has invited objections and suggestions on the draft regulations, allowing stakeholders to provide feedback before finalizing the framework. Interested parties have 30 days from the date of publication in Rajpatra, Himachal Pradesh, to submit their inputs. The regulations, once implemented, are expected to improve electricity planning and reliability in the state, ensuring a stable and sustainable power supply for the future.