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The Bihar Electricity Regulatory Commission (BERC) has approved the procurement of 100 MW wind power by Bihar State Power Holding Company Ltd. (BSPHCL) from the Solar Energy Corporation of India (SECI) under the Inter-State Transmission System (ISTS) connected wind power projects. The approval includes a Power Sale Agreement (PSA) between BSPHCL and SECI for 25 years. The petition was filed by BSPHCL seeking regulatory consent to secure wind power under Tranche XVII through a long-term agreement.
During the hearing, BSPHCL informed the Commission that SECI had issued a Request for Selection (RfS) for wind power procurement under Tariff-Based Competitive Bidding (TBCB). SECI offered 50 MW of wind power from Bidder L1 at a tariff of ₹3.81 per kWh and another 50 MW from Bidder L2 at ₹3.82 per kWh, both with an additional trading margin of ₹0.07 per kWh. BSPHCL, in response, provided its in-principle approval for the procurement through letters dated October 22, 2024, and December 18, 2024.
The Commission noted that BSPHCL aims to procure this power to meet its Renewable Purchase Obligation (RPO) and ensure compliance with wind energy targets. The 100 MW wind power is expected to contribute approximately 298.04 million units (MUs) annually towards the state’s wind purchase obligations.
During the review process, the Commission identified certain inconsistencies in the PSA, particularly regarding the quantum of power, applicable tariffs, and default provisions. Necessary modifications were made, including the correction of procurement quantum in the PSA, clarification on tariff rates, and alignment of default clauses with industry standards. Additionally, a clause related to Renewable Purchase Obligation (RPO) was revised to specify compliance with BERC regulations.
The Commission also analyzed whether the procurement of 100 MW wind power was necessary and if the discovered tariff rates were reasonable. BSPHCL submitted data indicating an expected shortfall of 1,500 MUs in wind power compliance for FY 2026-27, which would rise to 3,340 MUs by FY 2029-30. Based on these projections, the Commission found the procurement justified in helping Bihar meet its renewable energy targets. Furthermore, the discovered tariff was found to be lower than the Average Power Purchase Cost (APPC) of Bihar DISCOMs, making it competitive and market-aligned.
Regarding transmission charges, the Commission noted that ISTS charges and losses would be fully waived for projects commissioned before June 30, 2025. However, projects commissioned after this date would receive a reduced waiver based on regulatory provisions. Additionally, the bidding for this procurement was conducted under MoP guidelines issued in July 2023, making the projects ineligible for ISTS loss waivers.
With these considerations, the Commission approved the procurement of 100 MW wind power through SECI under Tranche XVII. The PSA was also approved, subject to the incorporation of the specified modifications. The final tariff will be dependent on approval from the Central Electricity Regulatory Commission (CERC) under Section 63 of the Electricity Act. The case was officially concluded, marking an important step in Bihar’s renewable energy transition.
