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The Bihar Electricity Regulatory Commission (BERC) has approved the procurement of 170 MW of wind power by Bihar State Power Holding Company Ltd. (BSPHCL) from SJVN Ltd. on a long-term basis. The approval includes the execution of a Power Sale Agreement (PSA) between BSPHCL and SJVN Ltd., which will be valid for 25 years. The petition was filed by BSPHCL seeking regulatory approval for the purchase under the Inter-State Transmission System (ISTS) connected wind power projects.
During the hearing, it was revealed that SJVN Ltd. had issued a Request for Selection (RfS) along with a draft Power Purchase Agreement (PPA) and PSA for the procurement of wind power through Tariff-Based Competitive Bidding (TBCB). As per the bidding results, SJVN Ltd. offered BSPHCL 70 MW and 100 MW wind power from two separate bidders at discovered tariffs of ₹3.98/kWh and ₹3.99/kWh, respectively, along with a trading margin of ₹0.07/kWh.
The Commission noted that ISTS transmission charges and losses would be waived for projects commissioned before June 30, 2025. However, projects commissioned after this date would receive only a partial waiver. BSPHCL had given in-principle consent for procuring 170 MW of wind power to meet the Renewable Purchase Obligation (RPO) for its distribution companies (DISCOMs). This procurement is expected to contribute approximately 491 million units (MUs) annually toward wind power compliance.
The Commission reviewed the details of the PSA and directed modifications in several key areas, including definitions, agreement terms, and tariff conditions. The term of the agreement was revised to match the useful life of wind power projects, set at 25 years under the Central Electricity Regulatory Commission (CERC) regulations. The payment security mechanism clause requiring a state government guarantee was removed, as existing guidelines already provide adequate provisions for securing payments.
Further, the Commission analyzed whether the procurement of 170 MW wind power was necessary and if the discovered tariffs were reasonable. BSPHCL submitted calculations showing a projected shortfall of wind energy in meeting its RPO targets, with deficits expected to reach 3,340 MUs by 2029-30. Based on these projections, the Commission found the procurement justified and aligned with Bihar’s long-term renewable energy goals. Additionally, the discovered tariffs were found to be lower than the Average Power Purchase Cost (APPC) of Bihar DISCOMs, making them competitive and cost-effective.
However, the Commission noted that the final adoption of the discovered tariffs would depend on approval from CERC under Section 63 of the Electricity Act, 2003. SJVN Ltd. has already filed a petition with CERC, and its decision will determine the final pricing structure.
Regarding ISTS transmission charge waivers, the Commission clarified that full exemption applies only to wind projects commissioned by June 30, 2025. As the bidding for this procurement was conducted under MoP guidelines issued in July 2023, it does not qualify for ISTS loss waivers.
With these conditions, the Commission approved the procurement of 170 MW wind power from SJVN Ltd. and allowed the PSA to be executed with necessary modifications. The case was officially disposed of, marking a key step in Bihar’s renewable energy expansion efforts.
