The Bihar Electricity Regulatory Commission (BERC) has approved tariffs ranging from ₹2.77 (~$0.032)/kWh to ₹3.48 (~$0.040)/kWh for 238.15 MW of solar power from grid-connected projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

The power acquisition for 25 years will help Bihar meet its Renewable Purchase Obligation (RPO).

Background

The petitioner, Bihar State Power Generation Company (BSPGCL), had initiated a competitive bidding process to procure 393.81 MW of solar power under PM-KUSUM for the solarization of 3,681 agriculture and mixed feeders with agricultural load.

Following the conclusion of the bidding process, BSPGCL sought the Commission’s approval for both the discovered tariffs, ranging from ₹2.77 (~$0.032)/kWh to ₹3.48 (~$0.040)/kWh, and the draft power purchase agreements () for 85 projects with a cumulative capacity of 238.15 MW.

BSPGCL asserted that the competitive bidding process was executed transparently, ensuring the discovered tariff was highly competitive and accurately reflected the prevailing market conditions.

Commission’s Analysis

The Commission examined the bidding process and found it to be transparent and compliant with the provisions laid down in the Electricity Act, 2003.

It observed that the discovered tariff was reasonable when compared to current market rates and that procuring power through this mechanism would help meet Bihar’s RPO commitments.

The Commission noted that the draft PPA included standard commercial and technical clauses and would provide the state with long-term renewable power availability. It emphasized that solar power will be procured entirely to meet RPO targets.

The state regulator approved the discovered tariffs for 85 out of the 116 power substations (PSS) for which multiple bids were received, aggregating to 238.15 MW. The tariffs quoted by L1 bidders ranged from ₹2.77 (~$0.032)/kWh to ₹3.48 (~$0.040)/kWh.

BERC observed that bids for the 85 PSSs fell within the earlier approved maximum rate of ₹3.48 (~$0.040)/kWh, which had been established for Bihar due to unique challenges including low solar irradiation, high land acquisition costs, and smaller average project sizes.

Recently, BERC approved the tariffs for 312 MW of wind power projects and the draft power sale agreements to be signed between Bihar State Power Holding Company and SJVN, the intermediary procurer.

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