The power project will meet normal power requirement of close to 1,000 families, a ministry statement said.
According to the statement, the Biaras small hydropower project (SHP) of 1.5 Mw was commissioned on November 4.
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The total cost of the project, fully funded by the Ministry of New and Renewable Energy, is Rs 17 crore and this is the first project to be commissioned under the Prime Minister's Ladakh Renewable Energy Initiative (LREI).
The plant will power the Drass town in Kargil, which is one of the coldest places in India.
Power from the Biaras SHP would be sufficient to meet normal power requirement of about 1,000 families, which would make them comfortable in the extreme winter season.
The project has been developed by the Kargil Renewable Energy Development Agency (KREDA) under the Ladakh Autonomous Hill Development Council.