The Bihar Electricity Regulatory Commission (BERC) has invited comments and suggestions from the public and stakeholders on the determination of renewable energy power tariffs for the financial year 2026-27. The initiative has been launched under Suo-Motu proceeding No. SMP 21/2026 and focuses on fixing generic levellised tariffs for electricity generated from different renewable energy technologies in the state.
The proposed tariff framework covers various green energy projects, including biomass power plants, non-fossil fuel-based co-generation projects, biomass gasifier projects, and municipal solid waste (MSW) or refuse-derived fuel (RDF)-based power projects. These proposed tariffs are part of the ongoing control period from 2025-26 to 2027-28, with 2026-27 being the second year of the cycle.
According to the draft proposal, the Commission has defined operational and financial norms for different renewable energy technologies. The useful life of wind, biomass, and solar power projects has been proposed at 25 years. Small hydro power projects are expected to have a longer useful life of 40 years, while MSW and RDF-based projects are estimated to operate for 20 years.
BERC has proposed a single-part tariff structure for these projects. The tariff will include fixed cost components such as return on equity, depreciation, interest on loans, and operation and maintenance expenses. In the case of fuel-based renewable projects like biomass and non-fossil fuel co-generation plants, the tariff will also include fuel cost components.
The Commission has also outlined key financial assumptions for the tariff determination process. A normative debt-to-equity ratio of 70:30 has been proposed for renewable energy projects. The interest rate on loans has been calculated at 10.716%, based on the average State Bank of India Marginal Cost of Lending Rate (MCLR) along with an additional margin. The return on equity has been fixed at a normative 14%, subject to adjustments according to applicable taxes.
In the draft order, BERC has also proposed capital cost norms for different renewable technologies. Biomass power projects are expected to have capital costs ranging between Rs. 638 lakh per MW and Rs. 744 lakh per MW, depending on the type of fuel and cooling technology used in the project. Among all technologies, municipal solid waste and RDF-based projects have been assigned the highest capital cost at Rs. 1500 lakh per MW.
The Commission has asked stakeholders, project developers, industry participants, and consumers to submit their comments and suggestions on the draft proposal by May 22, 2026. A public hearing on the matter will be conducted on May 26, 2026, at the Commission’s courtroom in Patna, where discussions on the proposed tariffs and regulations will take place.
The final tariffs approved by the Commission will apply to renewable energy projects commissioned up to March 31, 2027, and will remain effective until further orders are issued by BERC.
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