HPERC proposes revised RE tariff norms and biomass definitions
Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued draft amendments to the Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017, proposing revisions to renewable energy definitions and technology-specific useful life norms.
The draft Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from Renewable Energy Sources and Terms and Conditions for Tariff Determination) (Eighth Amendment) Regulations, 2026, were issued on May 12, 2026. The proposed amendments aim to align the state regulations with the Central Electricity Regulatory Commission (CERC) Renewable Energy Tariff Regulations, 2024.
New biomass-related definitions proposed
Under the proposed amendment, HPERC plans to insert two new clauses under Regulation 2(1) covering definitions related to biomass and biomass gasification.
The draft defines biomass as waste generated from agricultural and forestry activities, including straws and stalks, by-products of agricultural processing such as husks, shells and de-oiled cakes, wood from dedicated energy plantations or wild bushes and weeds, industrial wood waste and any additional waste categories recognised by the Central Government as biomass.
Biomass gasification has been defined as the incomplete combustion of biomass resulting in combustible gases including carbon monoxide (CO), hydrogen (H₂) and traces of methane (CH₄).
Technology-wise useful life proposed
The Commission has also proposed replacing the existing definition of “Useful Life” with technology-specific operational periods calculated from the date of commercial operation.
Under the draft amendment, wind power projects, biomass power projects based on Rankine cycle technology, non-fossil fuel-based co-generation projects, solar photovoltaic (PV), floating solar, solar thermal, biomass gasifier and biogas-based projects will have a proposed useful life of 25 years.
Small hydro projects will have a useful life of 40 years, while municipal solid waste and refuse-derived fuel-based projects will have a useful life of 20 years.
For renewable hybrid energy projects, the useful life under composite tariff arrangements will be linked to the minimum useful life among the combined renewable technologies. Renewable energy projects integrated with storage systems will have the same useful life as the associated renewable generation project, assuming storage is excluded.
The amendment regulations, once finalised, will come into force from the date of publication in the Rajpatra, Himachal Pradesh.
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