The Bihar Electricity Regulatory Commission (BERC) has set a target of meeting 43.33% of its energy requirements from renewable sources by the financial year (FY) 2030.

The regulations will apply to distribution licensees (DISCOM), consumers using conventional captive generation of 1 MW and above, non-renewable cogeneration projects, and open-access consumers procuring conventional power, including third-party sale.

Where an obligated entity draws partly through open access or captive mode and partly from the DISCOM, the obligation will apply only to the consumption from sources other than the DISCOM concerned.

Wind energy component

The wind renewable energy component must be met through energy produced from wind projects commissioned after March 31, 2024.

Any shortfall in meeting the stipulated wind renewable energy consumption in a particular year can be met with hydro renewable energy that is in excess of that energy component for that year, and vice versa.

Hydro component

The hydro renewable energy component must be met from hydropower projects, including pump storage projects and small hydro projects commissioned after March 31, 2024.

It can also be met from the free power provided to the state or DISCOMs from hydro projects commissioned after March 31, 2024, or from hydro projects outside India, as approved by the central government on a case-by-case basis.

If the free power is insufficient to meet the hydro power obligation (HPO), obligated entities must purchase additional hydro power to fulfill their HPO. They can also purchase a corresponding amount of renewable energy certificates  (REC) to offset the shortfall in hydro power.

Distributed renewable energy component

The distributed renewable energy component must be met only through energy generated from projects that are less than 10 MW and must include solar installations under all configurations, such as net and gross metering, and other renewable energy sources as notified by the Commission.

Compliance will ordinarily be considered in terms of energy in kWh. If the designated consumer cannot provide generation data, the reported capacity will be adjusted to reflect distributed renewable energy generation using a multiplier of 3.5 kWh/kW/day.

Other renewable energy component

Other renewable purchase obligations (RPOs) can be fulfilled with energy from any renewable energy project, including power purchased from exchanges other than those specified earlier. It can include wind hydropower as well as free power from projects commissioned before April 1, 2024.

Any shortfall in the wind or hydro renewable energy consumption obligation in a given year can be offset by surplus consumption under the other RPO component, and vice versa.

If there is any remaining shortfall in the other RPO category in a particular year, it can be met either with excess energy consumed from wind projects commissioned after March 31, 2024 beyond the wind RPO for that year, or with excess energy consumed from eligible hydro projects commissioned after March 31, 2024, beyond the HPO for that year, or a combination of both.

Renewable energy purchased through bundled power will qualify for renewable purchase obligation compliance only to the extent of the renewable energy content in the bundled power.

DISCOMs can count renewable energy generated by prosumers under gross, net, or net metering towards RPO compliance, provided that the prosumer is not an obligated entity under these regulations.

The DISCOMs must compulsorily procure 100% of the power generated from waste-to-energy projects in the state.

Obligated entities can meet RPO uniformly within a DISCOM’s area by their own generation, by procuring renewable energy through open access, directly, through a trading licensee, or via power markets, or by purchasing RECs.

The definition of green energy will encompass hydro and storage when the storage utilizes renewable energy, as well as mechanisms that employ green energy, such as the production of green hydrogen or green ammonia. The regulations do not set a separate storage target.

REC

RECs issued are valid instruments for obligated entities to discharge their mandatory obligations to purchase electricity from renewable energy sources.

If an obligated entity chooses to fulfill its RPO by purchasing RECs, the obligations to purchase electricity from various renewable energy sources can be met by purchasing the appropriate RECs.

Obligated entities must submit proof of certificates purchased to the Commission within one month of the purchase date.

Bihar Renewable Energy Development Agency (BREDA)

BREDA is responsible for accrediting and recommending renewable energy projects for registration, as well as carrying out all functions under these Regulations. It will follow the directions issued by the Commission and act in line with the procedures and rules set by the Central Agency under the Central Electricity Regulatory Commission Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation Regulations 2022.

The agency will submit a half-yearly status report on compliance with the RPO by obligated entities to the Commission within 30 days after the end of the first and second halves of the financial year. It can also recommend actions to the Commission when needed to ensure compliance.

DISCOMs

DISCOMs must state, with supporting evidence, the estimated quantity of power they will procure from renewable energy sources for the next year in their tariff petition or annual performance review.

If renewable energy is available and the DISCOM still fails to meet the minimum required quantity of procurement from renewable energy sources, it will be liable to pay compensation, in addition to any penalty.

Effect of Default

If an obligated entity fails to fulfill the RPO in any year and does not purchase the required RECs, the Commission can direct the entity to deposit an amount into a separate fund established under the Bihar Renewable Energy Policy 2025.

The Commission will determine the amount based on the shortfall in renewable purchase obligation units.

The fund will be used as directed by the Commission, partly for purchasing RECs and partly for developing transmission and sub-transmission infrastructure for evacuating power from renewable energy generating stations.

The obligated entities must not use this fund without the Commission’s prior approval. If an obligated entity fails to deposit the directed amount within 15 days of receiving the direction, it will be in breach of its license conditions.

If an obligated entity faces a genuine difficulty in meeting its RPO due to the non-availability of power or any other reason beyond its control, it can approach the Commission to carry forward the compliance requirement to the next year. However, any excess purchase from renewable energy sources will not be credited in the next year.

Tamil Nadu recently announced its renewable energy consumption and purchase targets from renewable sources by FY 2030.

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