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					</table><p>The Jharkhand State Electricity Regulatory Commission (<a href="https://jserc.org/regulation.aspx" target="_blank" rel="noopener">JSERC</a>) has approved the power sale agreement (PSA) between Bokaro Steel (<a href="https://www.sail.co.in/en/plants/about-bokaro-steel-plant" target="_blank" rel="noopener">BSL</a>), a Steel Authority of India (<a href="https://www.sail.co.in/en/home" target="_blank" rel="noopener">SAIL</a>) company, and Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) for purchasing 100 MW of solar power.</p>
<p>The Commission approved the PSA subject to Bokaro Steel procuring solar power at ₹2.85 (~$0.0327)/kWh, which includes ₹2.50 (~$0.0287)/kWh as the solar power developer (SPD) rate, ₹0.07 (~$0.0008)/kWh as SECI’s trading margin, and ₹0.28 (~$0.0032)/kWh as the tentative financial impact due to basic custom duty (BCD) and GST.</p>
<p>The Commission also noted that the interstate transmission system (ISTS) charges will not be applicable on the power purchase if the project is commissioned by June 30, 2025, under the CERC Regulation, 2023.</p>
<p><strong>Background</strong></p>
<p>The petitioner, Bokaro Steel, must meet its renewable purchase obligation mandates per JSERC regulations. The plant currently sources power from Bokaro Power Supply Company through captive generation from the Damodar Valley Corporation (<a href="https://www.dvc.gov.in/" target="_blank" rel="noopener">DVC</a>).</p>
<p>Bokaro Steel and SECI entered into a PSA for purchasing 100 MW of solar power.</p>
<p>The petitioner approached the Commission to approve the PSA, submitting that purchasing power from SECI would enable compliance with its renewable purchase obligation requirements while ensuring cost stability.</p>
<p>The cost of solar power under the PSA was determined at ₹2.85 (~$0.0327)/kWh for 25 years, and the existing power cost from DVC was ₹4.05 (~$0.0465)/kWh and is expected to increase over time.</p>
<p>The petitioner argued that approving the PSA would also provide financial benefits due to the ISTS charges exemption for projects commissioned before the June 30, 2025, deadline, under the CERC Regulations.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>JSERC noted that the PSA between the petitioner and SECI aligns with national renewable energy goals and ensures compliance with state regulations while offering long-term cost stability.</p>
<p>The Commission acknowledged that approving the PSA would provide financial relief to Bokaro Steel and consumers in Bokaro Steel City by securing a fixed solar power tariff, compared to the rising costs of conventional power from DVC.</p>
<p>It approved the PSA, subject to Bokaro procuring power from the project at ₹2.85 (~$0.0327)/kWh, with the tariff components clearly defined.</p>
<p>The Commission also directed that the power purchase will not attract any ISTS charges for 25 years, per the Ministry of Power’s notification on the CERC Regulations.</p>
<p>In June 2024, JSERC <a href="https://www.mercomindia.com/jharkhand-regulator-rules-project-is-rpo-compliant" target="_blank" rel="noopener">recognized</a> Bokaro Steel’s cogeneration plants as fulfilling renewable purchase obligations, citing their environmental benefits such as reduced emissions and fossil fuel conservation.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Jharkhand Regulator Approves Bokaro Steel’s 100 MW Solar Power Purchase


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					</table><p>The Jharkhand State Electricity Regulatory Commission (<a href="https://jserc.org/" target="_blank" rel="noopener">JSERC</a>) has recognized Bokaro Steel&#8217;s (<a href="https://www.sail.co.in/en/plants/about-bokaro-steel-plant" target="_blank" rel="noopener">BSL</a>), a Steel Authority of India (<u><a href="https://www.sail.co.in/en/home" target="_blank" rel="noopener">SAIL</a></u>) company, cogeneration plants as fulfilling renewable purchase obligations, citing their environmental benefits such as reduced emissions and fossil fuel conservation.</p>
<p>As a result, the captive power project at Bokaro Steel will count towards the renewable power purchase obligation (RPO) from FY 2013-14 to FY 2020-21.</p>
<p><strong>Background </strong></p>
<p>The petitioner, SAIL/BSL, sought exemption from RPO compliance for the fiscal years 2013-14 through 2020-21.</p>
<p>Bokaro Steel Plant has a distribution license from the Commission to supply power in its designated area under Section 14 of the Electricity Act, 2003.</p>
<p>According to the JSERC (Renewable Purchase Obligation and Compliance) (1st Amendment) Regulations, 2012 (&#8220;Regulations of 2012&#8221;), a distribution licensee becomes an &#8220;obligated entity&#8221; and must fulfill RPO under these regulations.</p>
<p>Currently, there are two sources of power supply: (a) captive generation from BPSCL [a captive power plant within BSL, operating as a joint venture between SAIL and Damodar Valley Corporation (<a href="https://www.dvc.gov.in/" target="_blank" rel="noopener">DVC</a>)], and (b) energy imported from DVC.</p>
<p>The petitioner also sought recognition of Bokaro Power Supply Company (<a href="https://bpscl.com/" target="_blank" rel="noopener">BPSCL</a>), a captive power plant with a capacity of 338 MW, as a generation power project and exemption for Bokaro Steel from the applicability of RPO since its captive power project is a cogeneration project.</p>
<p><strong>Commission&#8217;s Analysis                            </strong></p>
<p>The Commission noted that &#8220;cogeneration&#8221; means a process that simultaneously produces two or more forms of useful energy. Cogeneration is also a process that simultaneously produces electricity and heat, both of which are utilized. The relevant law has not restricted this process to producing energy from any specific fuel type. It can involve fossil fuels or non-fossil fuels.</p>
<p>Section 86(1) (e) of the Electricity Act, 2003 clearly states that the Commission is responsible for promoting cogeneration and the generation of electricity from renewable energy sources.</p>
<p>The Commission observed that the petitioner had provided details regarding steam utilization for heating purposes, power generation, and the amount of fuel saved.</p>
<p>These details demonstrated that the cogeneration projects of BSL benefit the environment by reducing the release of carbon monoxide, carbon dioxide, and other impurities, which are highly poisonous and strong pollutants generated as by-products of converting these gases.</p>
<p>Additionally, the cogeneration plants contribute to environmental conservation by reducing the use of non-conventional fossil fuels.</p>
<p>The Commission, therefore, held that BSL&#8217;s cogeneration project met the requirements of the RPO percentage as specified in the JSERC (Renewable Purchase Obligation and its Compliance) (First Amendment) Regulation, 2012, and the JSERC (Renewable Purchase Obligation and its Compliance) Regulation, 2016.</p>
<p>Consequently, the energy generation of the cogeneration plant would be considered for fulfilling the RPO Obligation for FY 2013-14 to FY 2020-21.</p>
<p>Recently, JSERC <a href="https://www.mercomindia.com/jharkhand-captive-status-power-projects" target="_blank" rel="noopener">issued</a> Jharkhand State Electricity Regulatory Commission (Verification of Captive Generating Plants and Captive Consumers) Regulations, 2024.</p>
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Jharkhand Regulator Rules Bokaro Steel’s Power Project is RPO-Compliant

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