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Bihar State Power Holding Company Limited filed a petition with the Bihar Electricity Regulatory Commission seeking approval to procure 312 MW of wind power from SJVN Limited. This power will be sourced under the Inter-State Transmission System (ISTS) connected wind power projects for long-term use. The petition also included a request for approval of the draft Power Sale Agreement to be signed between BSPHCL and SJVN. The offer from SJVN includes 200 MW from L1 bidder at a discovered tariff of Rs. 3.74 per unit and 112 MW from L2 bidder at Rs. 3.81 per unit, both with an additional trading margin of Rs. 0.07 per unit.
BSPHCL has aligned this procurement with its Renewable Purchase Obligation (RPO) targets, particularly to meet the Wind Purchase Obligation (WPO). As per a long-term resource adequacy plan by the Central Electricity Authority dated May 6, 2024, Bihar is expected to add 700 MW of wind power capacity each financial year starting from 2025–26. BSPHCL had already contracted 270 MW in FY2024–25, and this additional 312 MW will help fulfill the RPO. The total energy expected annually from this procurement is 742 million units, which will be sourced from NLC India Ltd and Adyant Enersol Pvt. Ltd.
During the hearings, the Commission raised concerns over the need for such procurement during off-peak demand periods and its impact on the power portfolio. In response, BSPHCL submitted a cost-benefit analysis estimating a saving of Rs. 65.94 crore by FY2027–28 through this wind power procurement. The petitioner also informed that surplus power during lean periods will be used to charge battery energy storage systems, expected to be commissioned by 2027–28.
The Commission also asked SJVN to justify the discovered tariffs and confirm compliance with the Ministry of Power guidelines. SJVN responded that the rates were determined through a fair and transparent e-bidding process, followed by an e-reverse auction, and are in line with prevailing market prices. They also mentioned that earlier wind power projects under the Wind-1 scheme had higher discovered tariffs. The draft Power Sale Agreement was confirmed to follow the standard bidding documents issued by the Ministry of Power.
The Commission analyzed whether the proposed procurement is necessary and whether the tariffs are reasonable. Given the RPO shortfalls projected in future years—1433 MUs in 2026–27, 1275 MUs in 2027–28, and up to 2551 MUs in 2029–30—the Commission found the procurement justified. The tariff rates are also lower than the average power purchase cost for Bihar DISCOMs and are considered reasonable. The trading margin of Rs. 0.07 per unit is in line with government guidelines.
As for the waiver of ISTS charges, full exemption applies only to wind projects commissioned by June 30, 2025. The current project, bid out under the 2023 guidelines, will not qualify for the ISTS losses waiver.
Finally, the Commission approved the procurement of 312 MW of wind power and the associated Power Sale Agreement, officially disposing of the petition.
