BERC Approves 450 MW FDRE Procurement For Bihar To Secure 1,800 MWh Peak Power Supply

In a major step toward strengthening energy security, the Bihar Electricity Regulatory Commission (BERC) has approved the proposal of Bihar State Power Holding Company Limited (BSPHCL) to procure 450 MW of Firm and Dispatchable Renewable Energy (FDRE) on a long-term basis. The approval, granted in Case No. 02/2026, will allow the state utility to secure renewable power for 25 years. The project is expected to supply 1,800 MWh of assured peak power, mainly to meet electricity demand during non-solar hours when generation from conventional solar plants is unavailable.

The power will be procured through SJVN Limited, which will act as the Renewable Energy Implementing Agency (REIA). The identified developer for the 450 MW capacity is Acme Solar Holdings Limited. The approved tariff for the project is Rs. 6.74 per kWh. In addition, a trading margin of Rs. 0.07 per kWh will be paid to SJVN Limited for its role in facilitating the procurement process.

One of the main reasons behind the petition was Bihar’s growing gap in meeting its Renewable Purchase Obligation (RPO) targets. According to submissions made before the Commission, the state is likely to face a deficit of around 910 million units (MU) in meeting its RPO requirement for the financial year 2026-27 if no additional renewable projects are tied up. This shortfall is projected to increase significantly to 4,347 MU by 2029-30. The Commission also took note of recommendations from the Central Electricity Authority, which has advised Bihar to secure substantial Battery Energy Storage System (BESS) capacity to ensure grid reliability and meet peak demand requirements up to 2035-36.

The approved FDRE project includes a Battery Energy Storage System component. The storage system will be charged using renewable energy, making the entire supply eligible for RPO compliance under existing regulations. The project is also eligible for a 100 percent waiver of Inter-State Transmission System (ISTS) charges if it is commissioned by June 30, 2028. The developer has committed to completing the project within a 24-month timeline to ensure it benefits from the ISTS waiver, even if there are delays in tariff adoption by the Central Electricity Regulatory Commission.

The Commission observed that Bihar frequently faces shortages during peak demand hours, forcing it to purchase costly short-term power or implement load curtailment. With this approval, BERC aims to provide a more stable and cost-effective solution for peak-hour supply while supporting the state’s distribution companies in meeting their renewable energy and regulatory obligations.