HPERC Issues Draft Renewable Energy Tariff Amendment Regulations, 2026

Himachal Pradesh Electricity Regulatory Commission (HPERC) has proposed amendments to its renewable energy tariff regulations to align key provisions with the 2024 renewable energy tariff framework issued by the Central Electricity Regulatory Commission.

In a notification, the state regulator released the draft HPERC (Promotion of Generation from Renewable Energy Sources and Terms and Conditions for Tariff Determination) (Eighth Amendment) Regulations, 2026 for public consultation.

The proposed amendments seek to incorporate updated definitions for 'biomass' and 'biomass gasification' in line with the CERC Renewable Energy Tariff Regulations, 2024. Under the draft rules, biomass will include agricultural and forestry waste, processing by-products such as husks and shells, wood from energy plantations, recovered weeds and industrial wood waste, along with other wastes recognised by the Central Government.

The draft regulations also define biomass gasification as the incomplete combustion of biomass to produce combustible gases including carbon monoxide, hydrogen and traces of methane.

Further, the Commission has proposed revised 'useful life' norms for renewable energy projects and dedicated evacuation systems. The draft retains a 25-year useful life for wind, solar PV, floating solar, solar thermal, biomass, biomass gasifier, biogas and non-fossil fuel-based co-generation projects, while small hydro projects will continue to have a 40-year useful life.

Municipal solid waste and refuse-derived fuel-based power projects have been assigned a useful life of 20 years. Renewable hybrid energy projects will have a useful life based on the minimum life of the combined renewable technologies under a composite tariff structure.

For renewable energy projects with storage, the useful life will remain the same as that of the underlying renewable energy project, assuming no storage component.

The Commission said that objections and suggestions on the draft amendments can be submitted within 30 days from publication of the notification.