The Bihar Electricity Regulatory Commission (BERC) has approved the tariffs for 312 MW of wind power projects and the draft power sale agreements (PSA) to be signed between Bihar State Power Holding Company (BSPHCL) and SJVN, the intermediary procurer.

The wind power will be from interstate transmission system-connected projects, with 200 MW to be procured from NLC India at a discovered tariff of ₹3.74 (~$0.043)/, and 112 MW from Adyant Enersol at a tariff of ₹3.81 (~$0.044)/kWh.

The Commission approved a trading margin of ₹0.07 (~$0.0008)/kWh to be paid to SJVN in addition to the discovered tariffs.

Background

The petitioner, BSPHCL, said procuring the wind energy was necessary to fulfill the state’s Renewable Purchase Obligation (RPO) targets. BSPHCL received a proposal from SJVN  on February 13, 2025, detailing competitive rates for wind power procured via the tariff-based competitive bidding mechanism.

BSPHCL referenced the Central Electricity Authority’s Resource Adequacy Plan for Bihar, published on May 6, 2024, which stipulates an annual procurement of 700 MW of wind power from FY 2025-26.

It said Bihar faces projected wind power obligation deficits of 1,433 MU in FY 2026-27 and 1,275 MU in FY 2027-28, potentially escalating to 2,551 MU by FY 2029-30.

BSPHCL projected savings of ₹659.4 million (~$7.65 million) in FY 2027-28 from this procurement.

It also outlined plans to utilize surplus wind energy during lean periods by storing it in battery energy storage systems, slated for commissioning by 2027-28.

In its submission, SJVN, asserted that the tariffs of ₹3.74 (~$0.043)/kWh and ₹3.81 (~$0.044)/kWh were discovered through a transparent bidding process. The tariffs were lower than previous bidding rounds, which saw tariffs of ₹3.98 (~$0.046)/kWh and ₹3.99 (~$0.046)/kWh.

Commission’s Analysis

The Commission examined whether the procurement was necessary and whether the tariffs discovered were reasonable. It accepted BSPHCL’s justification based on the projected shortfall in wind energy obligations.

The Commission noted that the procurement would support Bihar’s contribution to the national target of 500 GW of renewable energy capacity by 2030. The discovered tariffs were deemed reasonable, as they were lower than the average power purchase cost approved for Bihar’s distribution companies.

SJVN had also confirmed that the bidding process  was conducted in compliance with the Ministry of New and Renewable Energy’s standard bidding documents and that the tariffs were benchmarked against prevailing market rates.

Based on the merits of the case, the BERC approved the procurement of 312 MW of wind power at the discovered tariffs.

In April this year, BERC proposed including a new category of distributed renewable energy in its Renewable Power Obligation for the financial year 2030.

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