The Bihar Electricity Regulatory Commission (BERC) has admitted a petition filed by the Bihar State Power Generation Company Limited (BSPGCL) seeking approval for tender documents and proposed deviations for the development of 150 MW of solar photovoltaic (PV) projects integrated with 75 MW/300 MWh of energy storage systems across Bihar. In its order dated October 12, 2026, under Case No. 46/2026, the Commission also condoned the delay in filing the petition while directing BSPGCL to address several deficiencies identified in the proposed bidding documents.
The projects are proposed to be developed through tariff-based competitive bidding for the selection of Solar Power Developers. The petition seeks approval for the Request for Selection (RfS), the draft Power Purchase Agreement (PPA), project-specific provisions and proposed deviations. The North Bihar Power Distribution Company Limited and the South Bihar Power Distribution Company Limited are respondents in the case.
During the hearing, BERC examined the submitted documents and raised concerns regarding the proposed charges, contractual provisions, payment security arrangements and compliance with applicable regulatory guidelines.
One of the key issues concerned the charges proposed by BSPGCL. The company included a success charge of ₹1,00,000 per MW, along with regulatory fees, stamp duties, administrative charges and financial closure extension charges that were not quantified in the petition. The Commission observed that the regulatory basis for these charges was unclear. It also expressed concern that undisclosed or additional charges could create an unnecessary financial burden on electricity consumers.
The Commission further identified several proposed deviations that appeared inconsistent with the Late Payment Surcharge (LPS) Rules, 2022, and the Ministry of Power’s guidelines for Firm and Dispatchable Renewable Energy (FDRE) projects issued on June 9, 2023. The concerns included payment security mechanisms, tariff bidding parameters and provisions relating to early power supply and partial commissioning.
BERC also highlighted inconsistencies between the RfS and draft PPA concerning the parties to the agreement. While the RfS defines the PPA as an agreement between successful bidders and distribution companies, the draft PPA also includes Bihar State Power Holding Company Limited (BSPHCL). The Commission sought clarity on this discrepancy.
Another issue involved the tenure of the PPA. The salient features of the documents calculate the 25-year period from the Scheduled Commencement of Supply Date (SCSD), whereas the draft PPA’s definition section refers to the Commercial Operation Date (COD). The Commission noted the conflicting provisions and called for clarification.
Additional deficiencies were identified in Amendment No. 1 of the RfS, including ambiguity over energy imported for auxiliary consumption, inconsistent billing provisions involving the Average Cost of Supply (ACoS) and retail tariffs, and duplicate formats for Insurance Security Bonds.
The Commission also observed that provisions linking the commencement of power supply to the COD, rather than the execution date of the PPA, were inconsistent with the applicable FDRE guidelines.
BERC has directed BSPGCL to submit a formal reply addressing all the deficiencies before the next hearing, scheduled for November 5, 2026, at 11:30 AM.
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