SJVN’s 200 MW of Solar Project Receives Regulatory Approval

The Bihar Electricity Regulatory Commission (BERC) has approved the purchase of 200 MW of solar power on long term basis for 25 years at INR 3.11/kWh tariff from grid-connected PV projects to be developed by state-owned hydropower producer SJVN in the State.

The Bihar Renewable Energy Development Agency (BREDA) had filed a petition with the Bihar Electricity Regulatory Commission seeking permission for the production of 250 MW of solar power and its tariff fixation.

In December 2020 Bihar Renewable Energy Development Agency had invited Online Bids (e-tender) from interested Bidders for Procurement of Power from Grid connected Solar PV Power Projects through Tariff based competitive Bidding Process for total 250 MW on the basis of International Competitive Bidding Process in accordance with Ministry of Power Tariff based bidding Guidelines for solar PV Power Projects as per the details given in RFP document, in the capacity of Authorised Representative of the Procurer (BSPHCL).

During the e-reverse auction, SJVN submitted a bid of Rs 3.11 per kWh for the 200 MW of projects to be developed on a build, own, and operate basis.

The tender was first floated in June 2019 and was renewed and modified multiple times. Initially, the tariff offered was Rs 3.45 per kWh. The state regulator, however, did not approve this tariff, citing it as being too expensive and recommending that it be renegotiated in the range of Rs 3.05 per kWh to Rs 3.15per kWh.

The regulator also recommended that if the bidders and BREDA are unable to reach an agreement on a renegotiated tariff within the indicated range, the instant bid process be terminated and the projects be retendered by BREDA.

BREDA relaunched the same tender in December 2019 with a revised ceiling pricing of Rs 3.15 per kWh. BREDA lowered the Rs 3.15 per kWh cap and extended the bid submission date again in May 2020, following which the tender was launched again in December 2020.

SJVN will set up solar power plants in various districts of the state.