The Bihar Electricity Regulatory Commission (BERC) has approved Bihar State Power Holding Company’s (BSPHCL) proposal to procure 300 MW of wind-solar hybrid power through Solar Energy Corporation of India (SECI) under the ISTS Hybrid Tranche-IX on a 25-year basis.

The Commission also approved the discovered tariff of ₹3.25 (~$0.0343)/kWh and SECI’s trading margin of ₹0.07 (~$0.00074)/kWh.

The approved procurement is based on a revised configuration offered by ACME Solar Holdings, which includes a 300 MWh battery energy storage system (BESS) integrated with the hybrid renewable project.

Background

BSPHCL approached BERC seeking approval for the procurement of 300 MW wind-solar hybrid power through SECI, along with approval of the power sale agreement (PSA) and the discovered tariff under SECI’s Hybrid Tranche-IX tender.

The petition stated that Bihar’s distribution companies face rising renewable purchase obligation (RPO) requirements over the coming years. BSPHCL submitted that the state could face a renewable energy shortfall of around 5,645 MU in FY 2026-27, which would increase to around 7,936 MU by FY 2029-30 if additional renewable energy is not procured.

SECI had communicated tariffs for different hybrid tranches through earlier offers. Subsequently, ACME Solar Holdings submitted a revised proposal in which it committed to supply 300 MW of contracted capacity, along with a 300 MWh BESS, for a duration of four hours.

According to the petition, the revised structure would ensure supply during peak demand hours and provide additional support in meeting real-time power requirements.

It said that if the project failed to meet the minimum peak power supply obligation during peak hours, a penalty equivalent to 1.5 times the applicable PPA tariff would apply to the shortfall quantity during the relevant peak period, in accordance with the request for selection and PPA provisions.

BSPHCL also submitted that the revised tariff was lower than tariffs discovered under SECI’s earlier Hybrid Tranche-VIII procurement, where tariffs ranged from ₹3.43 (~$0.0362)/kWh to ₹3.46 (~$0.0365)/kWh. Under the revised Hybrid Tranche-IX configuration, tariffs ranged from ₹3.25 (~$0.0343)/kWh to ₹3.26 (~$0.0344)/kWh.

The petition further stated that the integrated BESS configuration would support supply during non-solar hours, help address peak-demand requirements, and contribute to RPO compliance.

Commission’s Analysis

BERC observed that Bihar’s distribution licensees are projected to face substantial renewable energy shortfalls in meeting future RPO targets. The Commission referred to the RPO trajectory notified by BERC and noted the national target of achieving 500 GW of renewable energy capacity by 2030.

It also referred to Bihar’s Long-Term Resource Adequacy Plan, which recommended the development of battery energy storage systems and additional renewable capacity to meet projected demand and RPO requirements.

The Commission noted that the Ministry of Power’s bidding guidelines require that at least one renewable resource component constitute at least 33% of the contracted capacity. The revised project configuration complied with this requirement.

The Commission also noted that the guidelines permit integration of storage systems with hybrid projects to support an assured power supply and reduce variability in renewable generation.

BERC observed that the revised project configuration includes a minimum peak availability of 80% of the contracted capacity during peak hours annually.

The order records that the project’s renewable energy composition includes 300 MW of solar capacity, 100 MW of wind capacity, and 300 MWh of BESS capacity.

The Commission noted that the project is expected to be commissioned within 24 months from the signing of the power purchase agreement, before June 30, 2028.

BERC also recorded that the project would be eligible for a 25% ISTS charges waiver for energy supplied from the solar component and a 100% ISTS waiver for energy supplied from the co-located BESS component, subject to applicable regulations.

In its tariff evaluation, the Commission observed that the discovered tariff of ₹3.25 (~$0.0343)/kWh was lower than the BERC-approved average renewable power purchase cost for FY 2026-27,the at ₹3.26 (~$0.0344)/kWh. The Commission therefore found the tariff reasonable and cost-effective.

The Commission also examined submissions relating to the impact of the change in law arising from the GST reduction. The order records that the impact was estimated at ₹0.10 (~$0.0010)/kWh to ₹0.12 (~$0.0012)/kWh and would be adjusted after project commissioning and the commencement of billing, in accordance with the PPA and PSA provisions.

It also accepted SECI’s trading margin of ₹0.07 (~$0.00074)/kWh.

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