HPERC Approves Eighth Amendment Regulations 2026, Expands Biomass Definition and Aligns RE Tariff Rules with CERC

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved the Eighth Amendment Regulations, 2026, related to renewable energy promotion and tariff determination in the state. The regulations were finalized on June 23, 2026, by a bench comprising Chairman Yashwant Singh Chogal and Member Shashi Kant Joshi. The amendment brings the state’s Renewable Energy Tariff Regulations, 2017, in line with the latest regulations issued by the Central Electricity Regulatory Commission (CERC) in 2024.

The amendment process began on May 13, 2026, when HPERC released the draft regulations for public consultation. Public notices were published in regional newspapers, inviting stakeholders and members of the public to submit comments and suggestions by June 15, 2026. A public hearing was subsequently held on June 16, 2026, to discuss the proposed changes.

During the hearing, only one participant, Sh. Anil Thakur from the Industries Department of Himachal Pradesh attended and did not raise any objections to the draft regulations. However, the Directorate of Energy (DoE), Government of Himachal Pradesh, submitted detailed written suggestions on various provisions of the amendment.

One of the key recommendations from the DoE concerned the definition of biomass. Considering the state’s unique geographical and agro-climatic conditions, the department requested that locally available resources such as pine needles, forest litter, horticulture waste, and similar materials be specifically included under the biomass category. HPERC accepted this suggestion and revised the definition accordingly. The updated definition now includes waste generated from agricultural, horticultural, and forestry activities, including straws, pine needles, forest litter, husks, and other processing by-products.

The DoE also suggested providing greater clarity regarding the determination of the minimum useful life of Renewable Hybrid Energy Projects. However, the Commission decided not to make any changes, stating that the existing provision is already aligned with CERC regulations. Under the current framework, the useful life of a hybrid project is determined based on the shortest useful life among its constituent technologies.

In addition, the Directorate of Energy proposed the introduction of specific tariff frameworks for emerging technologies such as Solar PV projects integrated with Battery Energy Storage Systems (BESS), Green Hydrogen projects, and Pumped Storage facilities. While acknowledging the importance of these technologies, HPERC stated that these issues fall beyond the scope of the present amendment and may be considered separately in the future.

The Commission also noted that a separate regulatory exercise is already underway to determine the generic levelized tariff for biomass gasifier power projects for FY 2026-27. Following the review of all suggestions and comments, HPERC approved the amendment regulations and directed their publication in the official state gazette, Rajpatra.