BERC Approves Bihar DISCOMs To Procure 600 MW Solar Power At Rs. 2.50/kWh

BERC Approves Bihar DISCOMs To Procure 600 MW Solar Power At Rs. 2.50/kWh

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The state distribution companies (DISCOMs) have been given permission by the Bihar Electricity Regulatory Commission (BERC) to purchase 600 MW of solar power (Tranche VIII) from the Solar Energy Corporation of India (SECI) for a period of 25 years at a rate of Rs. 2.50/kWh and a trading margin of Rs. 0.07/kWh.


On behalf of the state DISCOMs, Bihar State Power Holding Company (BSPHCL) submitted a petition asking for clearance to purchase 600 MW of solar energy from SECI under the interstate transmission system (ISTS) program (Tranche VIII) for the period of 25 years.

A tender to establish 1,200 MW of ISTS-connected solar power plants (Tranche VIII) was published by SECI in January 2020, in which, one of the winning bidders in the reverse auction was SBE Renewable Fifteen, with 600 MW capacity at a cost of Rs. 2.50/kWh.

According to BSPHCL, the estimated renewable purchase obligation (RPO) for solar electricity up to FY 2029–30 indicated a situation of ongoing deficit, thereby, purchasing solar energy will aid in achieving its goals.

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Also, the RPO trajectory from renewable sources had greatly grown in accordance with BERC’s RPO Compliance Regulations from 2010.

The Commission found that CERC was the proper Commission to approve the immediately discovered tariff because SECI was selling such power to other states, including the DISCOMs of Bihar, at a discovered price.

It stated that the revealed tariff from SECI was competitive and significantly less than the state’s DISCOMs’ typical power purchase cost for FY 2022–2023.

BERC also said that in order to meet RPO goals, procuring renewable energy in this instance could not be avoided. Thus, taking into account all the information, the Commission authorized the purchase of 600 MW of solar energy from SECI.

Additionally, subject to approval by the Central Electricity Regulatory Commission, BERC authorized the draft power selling agreement (PSA) (CERC).

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