BERC Secures 200 MW Solar And 100 MW BESS To Tackle RPO And Peak-Hour Deficit In Bihar

The Bihar Electricity Regulatory Commission has approved a major renewable energy proposal submitted by the Bihar State Power Holding Company Limited. The approval, issued on November 18, 2025, allows the state to procure 200 MW of solar power supported by a 100-MW, 400 MWh energy storage system. This power will be sourced through the Solar Energy Corporation of India under the ISTS-connected Tranche-XV Scheme on a long-term basis.

BSPHCL approached the commission with the concern that Bihar is heading toward a large shortfall in meeting its Renewable Purchase Obligations. The company explained that without new renewable energy sources, the state’s RPO deficit could reach 926 million units in the financial year 2026-27. The deficit is expected to increase every year, rising to nearly 6,924 million units by 2029-30. The commission examined these projections and agreed that additional renewable capacity is essential to avoid failing to meet national and state renewable mandates.

Another major issue highlighted in the petition was the increasing demand for electricity during evening peak hours between 7 p.m. and 11 p.m. Bihar has been struggling to meet demand during these hours, despite having surplus power during daylight when solar energy is available. During peak hours, the state has often faced deficits of up to 2,100 megawatts. To manage this shortfall in the past, the discoms relied on buying power from Power Exchanges. However, this option proved unreliable and expensive, as evening market prices are usually high and supply is not always guaranteed.

To tackle this challenge, BSPHCL requested SECI to offer a project that included battery storage. The selected project was offered by ACME Solar Holdings Limited. It consists of 200 MW of solar power combined with a four-hour battery energy storage system. The discovered tariff for the project is ₹3.42 per kilowatt-hour. An additional trading margin of Rs 0.07 per kilowatt-hour will be paid to SECI. The commission found the tariff economically reasonable, especially when compared to volatile market prices and the cost of peak power purchases.

The commission pointed out that the project will not only help the state meet its renewable purchase targets but will also provide firm and assured electricity during peak evening hours. The 4-hour storage system is expected to play a key role in improving the reliability of supply during times of high demand. The project is estimated to generate around 443.25 million units every year, contributing directly to the state’s renewable energy portfolio.

Another important factor that influenced the approval was the financial savings from interstate transmission charge waivers. Since the developer has committed to commissioning the solar component before June 30, 2027, Bihar’s discoms will receive a 50 percent waiver on ISTS charges for the solar portion for the next 25 years. Additionally, the energy supplied from the battery storage system, which will be commissioned before June 30, 2028, will enjoy a full 100 percent ISTS waiver. These waivers will help reduce power costs significantly over the long term. Overall, the project is expected to yield a net financial saving of about ₹371.31 crore, compared to the financial liability of ₹291.32 crore during the period from 2027 to 2031.

In its final decision, the commission stated that the procurement is necessary to cover the upcoming RPO gaps and to ensure a reliable power supply during evening peaks. The order was issued by a quorum led by Chairman Amir Subhani, confirming that the project meets both economic and operational needs for the state’s power system.