The Bihar Electricity Regulatory Commission (BERC) has approved a petition filed by the Bihar State Power Holding Company (BSPHCL) to procure 170 MW of power from SJVN’s interstate transmission system (ISTS)-connected wind projects for 25 years.

After adding multiple amendments and conditions, the Commission also approved the draft power sale agreement (PSA).

The procurement involves sourcing 70 MW of wind power at ₹3.98 (~$0.046)/kWh and 100 MW at ₹3.99 (~$0.046)/kWh, along with a trading margin of ₹0.07 (~$0.0008)/kWh payable to SJVN.

The tariff will be adopted only after final approval from the Central Electricity Regulatory Commission (CERC).

Background

BSPHCL filed a petition seeking approval to procure 170 MW of wind power from SJVN.

The petitioner submitted that the procurement would contribute approximately 491 million units (MUs) annually to the North Bihar Power Distribution Company (NBPDCL) and the South Bihar Power Distribution Company (SBPDCL)’s Wind Purchase Obligations (WPOs).

BSPHCL anticipated a shortfall of 1,500 MUs in the WPO category for the financial year (FY) 2027.

BSPHCL argued that procuring wind power through long-term agreements was necessary to meet its Renewable Purchase Obligation (RPO).

SJVN added that the bidding process followed the Ministry of Power’s guidelines. It said the discovered tariffs, including trading margins, were competitive and compliant with regulatory norms.

Commission’s Analysis

The Commission found the proposed procurement reasonable and market-aligned. It noted that the discovered tariffs were lower than the average power purchase costs approved earlier for the Bihar-based distribution companies.

It noted that power procurement would be essential for the state’s renewable energy requirements and long-term stability.

However, the tariff approval was subject to multiple amendments to the PSA. Key directives included defining BERC as the regulatory authority, aligning the PSA duration with the 25-year useful wind project life, and revising provisions on payment security.

The Commission mandated deleting clauses requiring a state government guarantee and a separate payment security fund.

It also clarified that the ISTS charge waivers would only apply to wind projects commissioned by June 30, 2025. Projects commissioned after this date will receive a reduced waiver per prevailing regulations.

Since the bidding process followed the Ministry of Power’s guidelines issued in July 2023, the project did not qualify for an ISTS loss waiver, which only applies to bids conducted before January 15, 2021.

The trading margin of ₹0.07 (~$0.00080)/kWh was found to be per the Ministry of Power’s guidelines.

The Commission ruled that adopting the tariff remained contingent on CERC’s final approval.

In December 2024, BERC issued the Green Energy Open Access Regulations to promote the generation, purchase, and consumption of green energy, including energy from waste-to-energy projects.

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