The Bihar Electricity Regulatory Commission has introduced the Terms and Conditions for Tariff Determination from Renewable Energy Sources Regulations, 2025, to bring more clarity and structure to how tariffs are set for renewable energy projects in the state. These regulations are based on the powers given to the Commission under the Electricity Act, 2003. The Act allows the Commission to frame rules for tariff determination and to promote the use of renewable energy. It also requires the Commission to make sure that a certain share of the total electricity used in the state comes from renewable sources. This gives a clear legal backing to the new rules and shows the intention to support the growth of renewable energy in Bihar.
The Commission is responsible for deciding tariffs for electricity generation, supply, transmission, and wheeling within the state. Along with this, it must encourage renewable energy development by ensuring that distribution licensees buy a fixed percentage of their power from renewable sources. The new regulations build on this responsibility and attempt to create a transparent and predictable tariff-setting process for developers, investors, and consumers.
One of the important features of the 2025 regulations is the introduction of the ceiling levelized tariff. According to Clause 65, the levelized tariff calculated based on the norms given in the regulations will act as the maximum tariff allowed for a renewable energy project. This gives clear guidance to project developers while also protecting consumer interests by placing an upper limit on the tariff. It brings predictability to the financial planning of renewable energy projects and helps maintain tariff discipline in the sector.
The regulations also acknowledge the role of national and state policies in shaping the renewable energy sector. Clause 66 states that any policy or guideline issued by central institutions like the Ministry of Power or the Ministry of New and Renewable Energy, as well as directives issued by the State Government, will take precedence if they conflict with the regulations. This ensures alignment with broader national goals and prevents regulatory overlap or confusion.
The Commission has kept significant flexibility within the framework. Clause 67 gives it the power to relax any provision of the regulations either on its own or on the request of an interested party. Before doing so, the Commission must record the reasons in writing and offer a chance for affected parties to be heard. This flexibility allows the Commission to respond to unique circumstances or genuine difficulties faced by stakeholders. Similarly, Clause 68 allows the Commission to issue orders to remove any difficulty that arises in implementing the regulations. This ensures that small or unforeseen issues do not delay the rollout of renewable energy projects.
To keep the regulations relevant over time, Clause 69 gives the Commission the authority to amend the rules whenever needed. It can add, change, or modify any provision to keep pace with sector developments. Finally, Clause 70 officially repeals the earlier 2017 regulations and their amendments. With this step, the Commission has fully replaced the older framework with a new, updated structure aimed at supporting and expanding renewable energy in the state.
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