The State undertook structural reforms in 2010 wherein the erstwhile Himachal Pradesh State Electricity Board (HPSEB) was unbundled into Himachal Pradesh Power Transmission Corporation Ltd. (HPPTCL- Transmission company) and Himachal Pradesh State Electricity Board Limited (HPSEBL - Generation and Distribution company).
Additionally, State Load Despatch Centre was established as an independent entity in the form of Himachal Pradesh State Load Despatch Society in 2010. A separate Generating Company Himachal Pradesh Power Corporation Limited (HPPCL) was established by the State Government for planning, promotion and development of hydro power projects within the state.
Himachal Pradesh is endowed with rich hydro resources which has helped in meeting its power requirement to a large extent. HPSEBL owns 22 operational hydro power plants with a total installed capacity of 487 MW.
Himachal Pradesh is naturally suited for hydropower generation and accounts for around 25.9% of India’s total hydropower potential.
As per estimates, the state has the potential to generate 27,436 MW of hydro power through the construction of various hydel projects on river basins. The largest potential for electricity generation lies on the river Satluj (13,332 MW), followed by Beas (5,995 MW), Chenab (4,032 MW) and Ravi (3,237 MW).
Through preliminary hydrological, topographical and geological investigations, it has been estimated that about 27,436 MW of hydroelectric potential can be exploited in the state by constructing various major, medium, small and mini/micro hydroelectric projects on these five river basins.
Of this hydel potential, 9,755 MW of projects have already been commissioned, while 1,885 MW of projects are under execution/construction.
Himachal Pradesh is one of the few states in India where power delivered to consumers is entirely metered.
In May 2017, the state government voiced intentions to commission a 100 MW Sainj Hydroelectric Project constructed by the Himachal Pradesh Power Corporation Ltd in Kullu. The US$ 118.99 million project, which was funded by the Asian Development Bank, will generate 332 million units per annum.
As of November 2016, Government of Himachal Pradesh allotted 95 small hydro power projects to 95 investors, with a total capacity of 197.69 MW. Of these, 74 projects with capacity of 126.69 MW were allotted to investors within the state and 21 projects with capacity of 76 MW were awarded to investors from outside Himachal Pradesh.
Amplus Energy, secured a project to supply solar power at US$ 0.0457 per unit for 25 years, in the state.
Himachal Pradesh has become the 18th state to join UDAY, a central scheme for revival of debt stressed power distribution companies, availing a net benefit of around US$ 125.72 million.
As of October 2017, Himachal Pradesh had a total installed power generation capacity of 4,011.78 MW.
Hydro power accounted for 2,910.48 MW of total installed power generation capacity, followed by renewable power (836.44 MW) and thermal power (235.91 MW).
Under thermal power, coal accounted for 173.90 MW and gas accounted for 62.01 MW of total installed power.
Also, out of the total installed power capacity, the private sector accounted for 1,571.83 MW of hydropower whereas the central sector accounted for 1,488.74 MW of hydropower.
As per Budget 2017-18, out of the total harnessed power of 10,351 MW, the state has been successful in attaining 830 MW of power during 2015-16. The commissioning of hydro electric power projects which include Sainj 100 MW, Uhal 100 MW and Kashang 65 MW is expected to be fulfilled during 2016-17.
As per Budget 2017-18, the state government has allocated US$ 182.84 million for MPP1 & Power sector.
The state government has undertaken various steps to enhance the financial health of Himachal Pradesh State Electricity Board Limited, a key electricity provider across every household in the state’s remote areas, by providing loan liability of US$ 86.15 million to the department.
In order to improve rural lines of the state by installing new transformers and poles, the state government will offer an equity contribution of US$ 7.63 million.