The Bihar Electricity Regulatory Commission (BERC) has initiated suo-motu proceedings to introduce the draft “BERC (Renewable Purchase Obligation, its compliance and REC Framework Implementation) (1st Amendment) Regulations, 2026.” The proceedings, registered as Case No. SMP-40/2026, were issued from Vidyut Bhawan-II, Patna, on September 17, 2026.
The proposed amendment seeks to refine the framework for calculating and complying with Renewable Purchase Obligations (RPO) applicable to obligated entities, including distribution licensees, open access consumers, and captive power plant users. The draft amendments modify provisions of the principal regulations notified in July 2025.
One of the key proposed changes relates to electricity that will be excluded from RPO calculations. Electricity consumed from nuclear power sources will be excluded for all obligated entities. For captive users, electricity generated and self-consumed through waste heat recovery processes using fossil-based sources will also be excluded. The proposed framework further provides exemptions for residual industrial process energy, 50% of electricity generated through fossil-fuel-based co-generation plants, and 50% of fossil-fuel-based electricity consumed in aluminium smelters.
For distribution licensees, RPO calculations will be based on the electrical energy supplied to consumers within their distribution periphery. Direct consumption through open access arrangements and electricity generated through captive sources and self-consumed by consumers will be excluded from the calculation.
The draft regulations also introduce a phased Energy Storage Obligation on an energy basis. The obligation has been proposed at 2.5% for 2026–27, increasing to 3% in 2027–28, 3.5% in 2028–29, and 4% in 2029–30. BERC will periodically review these requirements based on the operational capacity of Pumped Storage Projects and the commercial viability and development of Battery Energy Storage Systems.
The proposed framework provides obligated entities with alternative options for meeting their storage-related obligations. These include direct consumption of renewable energy combined with storage or payment of a central buyout price. Under the proposed buyout mechanism, 75% of the funds collected will be transferred to the State Energy Conservation Fund. The funds are intended to support renewable energy and energy storage capacity development within the state.
BERC has also proposed replacing the existing Annexure-I with updated illustrative numerical examples covering calculations for distribution licensees and captive users. A detailed reporting format has also been introduced as Annexure-II to improve reporting and compliance requirements.
The draft regulations have been made available at the BERC office in Patna and on the Commission’s official website. BERC has invited comments, suggestions, and objections from the public, stakeholders, and industry organisations.
Submissions must be addressed to the Secretary of BERC and submitted by October 8, 2026. The Commission has also scheduled a public hearing on October 13, 2026, at 11:30 AM, where interested stakeholders can present their views on the proposed amendments.
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