The Bihar Electricity Regulatory Commission (BERC) has approved Bihar State Power Holding Company’s (BSPHCL) proposal to procure 200 MW of solar power with a 100 MW/400 MWh energy storage system (ESS) through the interstate transmission system Tranche-XV program of the Solar Energy Corporation of India (SECI).

SECI offered a tariff of ₹3.42 (~$0.038)/kWh. The Commission approved the power sale agreement (PSA) at the tariff adopted by the Central Electricity Regulatory Commission (CERC), along with a trading margin of ₹0.07 (~$0.00079)/kWh payable to SECI.

The project is eligible for transmission charge waivers under the applicable CERC Sharing Regulations.

Background

BSPHCL submitted a petition saying the procurement of solar power was necessary to address increasing renewable purchase obligation (RPO) targets and severe power shortages during evening peak hours. It said Bihar faces a projected peak hour deficit of up to 2,100 MW between April and October, currently met through power exchange procurement, which is unreliable and expensive during critical hours. The RPO trajectory set by BERC requires total RPO compliance of 33.01% in the financial year (FY) 2025-26, rising to 43.33% in FY 2029-30.

The anticipated RPO shortfall is 926 million units (MU) in FY 2026-27, 2,397 MU in FY 2027-28, and 6,924 MU in FY 2029-30. BSPHCL submitted a cost-benefit analysis showing an estimated financial liability of ₹2.91 billion (~$32.83 million) between FY 2027-28 and 2030-31, compared with savings of ₹3.71 billion (~$41.85 million) if power is procured rather than purchased from renewable energy certificates and associated grid network access charges.

The proposal aligns with the Central Electricity Authority’s Long-Term Resource Adequacy Plan, which recommends adding 7,099 MW of solar generation and 5,518 MW of battery storage capacity in Bihar by 2033-34.

SECI informed the Commission that developer ACME Solar Holdings will commission the project before June 30, 2027. The contract includes penalty mechanisms for shortfalls in committed supply, including penalties for peak-hour energy shortfalls at 1.5 times the PPA tariff and for CUF shortfalls. The configuration allows four hours of assured supply between 6 PM and 12 AM each day.

Commission’s Analysis

The Commission noted that the state has surplus solar power during the daytime but continues to face recurring shortages during evening peak hours. It  observed that reliance on power exchanges cannot meet the demand even at ceiling market prices, resulting in operational and financial risks to the state’s distribution companies.

It held that procuring renewable power, coupled with energy storage, would improve supply reliability, support RPO compliance, and reduce reliance on short-term power markets.

The order stated that benefits from ISTS charge waivers applicable to both solar and storage components result in additional financial advantages.

Approving the request for the procurement of 200 MW of solar power with 100 MW/400 MWh storage capacity, the Commission stated that timely implementation and PSA execution will be critical for achieving the projected benefits.

Recently, the Commission issued the BERC (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations 2025, specifying a generic tariff determination structure for renewable energy technologies.

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