The Bihar Electricity Regulatory Commission (BERC) has initiated a significant process to determine power tariffs for renewable energy projects for the financial year 2025-26. In a public notice issued on December 26, 2025, the Commission outlined its plan to establish generic levelized tariffs for different renewable energy technologies. Levelized tariffs are calculated to balance the cost of electricity over the lifetime of a project, providing a fair and predictable pricing framework for both project developers and consumers. This marks an important step in regulating and promoting renewable energy in the state of Bihar.
The proposed tariff framework covers multiple types of renewable energy projects, including biomass power projects, non-fossil fuel-based cogeneration plants, biomass gasifier projects, and plants that generate power using municipal solid waste (MSW) or refuse-derived fuel (RDF). These projects are expected to follow the new regulations during a three-year control period, starting from the 2025-26 financial year. The control period allows for stability and predictability in tariff structures, giving investors confidence in the financial viability of renewable energy projects in Bihar.
To determine the tariffs, BERC has set technical and financial benchmarks. Most projects are assumed to have a useful life of 25 years, except for municipal solid waste projects, which are considered to have a useful life of 20 years. The financial structure assumes a debt-to-equity ratio of 70:30, meaning 70 percent of project costs are expected to be financed through loans, while 30 percent comes from the owner’s own investment. The interest rate on these loans has been proposed at 10.80 percent, while the post-tax return on equity for project owners is set at 14 percent. These assumptions provide a standardized approach to evaluating project costs and calculating the tariffs.
The proposed capital costs, which represent the initial investment required to build these plants, vary depending on the technology used. Biomass projects are estimated to cost between ₹638 lakh and ₹744 lakh per megawatt, depending on factors like fuel type and cooling systems. Projects using municipal solid waste have a significantly higher proposed capital cost of ₹1,500 lakh per megawatt, while refuse-derived fuel projects are set at ₹900 lakh per megawatt. These differences reflect the varying complexity and technology requirements of each type of renewable energy project.
The final proposed tariffs are divided into fixed costs and variable fuel costs. Biomass gasifier projects have a proposed total tariff of ₹9.63 per kilowatt-hour, while non-fossil fuel-based cogeneration using bagasse is lower at ₹7.95 per kilowatt-hour. Municipal solid waste projects are proposed at ₹6.96 per kilowatt-hour and have no fuel cost component, which makes them less sensitive to fluctuations in fuel prices.
BERC has invited the general public, as well as professional stakeholders, to provide feedback on the proposed tariffs. Written comments, suggestions, or objections can be submitted until January 19, 2026. Following this, a public hearing is scheduled for January 22, 2026, at the Commission’s courtroom in Patna. This hearing will provide an opportunity for further discussion before the final tariff rates are finalized for the 2025-26 fiscal year. Through this process, the Commission aims to ensure that the renewable energy sector in Bihar continues to grow in a sustainable and financially viable manner.
The notice reflects BERC’s focus on promoting renewable energy while maintaining transparency and public participation. By setting clear and predictable tariff structures, the Commission is providing a stable framework for investors, developers, and consumers, supporting the broader goal of a cleaner and more sustainable energy future in Bihar.
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