The Bihar Electricity Regulatory Commission (BERC) has approved a proposal by Bihar State Power Holding Company (BSPHCL) to procure 190 MW of assured peak power supply through an interstate transmission system (ISTS)–connected wind–solar hybrid project with a co-located battery energy storage system (BESS) under the Solar Energy Corporation of India’s (SECI) hybrid tranche-VI program.

The procurement is for 25 years at a tariff of ₹4.72 (~$0.0522)/kWh, plus SECI’s trading margin of ₹0.07 (~$0.0008)/kWh, as already adopted by the Central Electricity Regulatory Commission (CERC).

The power will be supplied during peak demand periods, primarily in non-solar hours, with assured availability supported by battery storage, and will be governed through a power sale agreement (PSA) between BSPHCL and SECI.

Background

BSPHCL approached the Commission seeking approval for the procurement of 190 MW out of 600 MW of assured peak power offered by SECI.

The selected capacity is awarded to ACME Solar Holdings. The project combines wind and solar generation with a co-located BESS designed to deliver continuous power for five hours during peak demand periods, an enhancement over the initially planned four-hour supply.

The project is proposed to be commissioned within 24 months of execution of the power purchase agreement, thereby enabling eligibility for applicable ISTS transmission charge waivers.

In its submissions, BSPHCL highlighted growing compliance challenges under the Commission’s renewable purchase obligation (RPO) targets. BSPHCL projected an RPO shortfall of 910 million units (MU) in the financial year (FY) 2026-27, increasing to 4,347 MU by FY 2029-30. Under the renewable consumption obligation (RCO), the projected shortfall was estimated at 6,983 MU in FY 2026-27, rising to 11,991 MU by FY 2029-30.

The discovered tariff under the SECI bidding process ranged between ₹4.64 (~$0.051) and ₹4.73 (~$0.0523)/kWh, with HPD-4 agreeing to supply power at a reduced tariff of ₹4.72 (~$0.0522)/kWh.

BSPHCL argued that long-term procurement of assured peak power would reduce dependence on volatile and often unavailable power exchange purchases during peak hours and improve the reliability of round-the-clock supply.

Commission’s Analysis

The Commission examined the petition, written submissions, and oral arguments, and directed BSPHCL and SECI to revise certain provisions of the draft PSA.

These included clarity on State Government guarantee mechanisms, flexibility in peak power discharge patterns, declaration of maximum and minimum energy, and treatment of peak hours if not declared by the distribution companies (DISCOM) in advance.

BSPHCL submitted a revised PSA stating that the tripartite agreement among the Reserve Bank of India, the Central Government, and the State Government would serve as the State Government guarantee.

BERC said Bihar’s power system is expected to remain surplus during solar hours but face deficits during non-solar peak hours, particularly between April and October.

The Commission noted that reliance on power exchanges during peak periods has been unreliable, even at ceiling prices, affecting the ability of DISCOMs to ensure 24×7 power supply. It held that while the proposed hybrid project would add to solar-hour surplus, the integrated BESS would significantly mitigate peak-hour deficits.

The Commission further noted that the project would support the achievement of both RPO and RCO trajectories.

As the project is expected to be commissioned before June 30, 2028, it would qualify for a 25% ISTS transmission charge waiver for wind and solar components, and a 100% ISTS transmission charge waiver for energy supplied from the co-located BESS.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.