BERC Approves 200 MW FDRE Power Procurement For Bihar Under 25-Year Agreement

The Bihar Electricity Regulatory Commission (BERC) has approved the procurement of 200 MW of Firm and Dispatchable Renewable Energy (FDRE) power by Bihar State Power Holding Company Limited (BSPHCL) for a long-term period of 25 years. The renewable power will be procured through SJVN Limited from Inter-State Transmission System (ISTS)-connected renewable energy projects integrated with Battery Energy Storage Systems (BESS).

The procurement initiative has been undertaken by BSPHCL on behalf of Bihar’s two distribution companies, North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL). The primary objective is to address the growing gap in meeting the state’s Renewable Purchase Obligations (RPO) targets. Projections presented before BERC indicated that the state’s distribution companies would continue to face an increasing shortfall in meeting their mandatory RPO requirements up to the financial year 2029–30.

The commission recognized that procuring renewable energy integrated with battery storage would help the state improve its renewable energy compliance while strengthening electricity supply during peak demand periods. The FDRE arrangement is expected to provide greater flexibility in managing electricity demand, particularly during evening hours when solar generation declines and consumption typically increases. The integration of wind-solar hybrid generation with BESS will also help reduce Bihar’s dependence on expensive short-term power market purchases and minimize the possibility of load curtailment.

Under the competitive tariff-based bidding process conducted by SJVN, Avaada Energy Private Limited emerged as the successful bidder. The company offered a tariff of ₹4.25 per kWh, along with an additional trading margin of ₹0.07 per kWh. The discovered tariff has already been formally adopted by the Central Electricity Regulatory Commission (CERC).

As part of the project arrangements, the developer has committed to providing continuous renewable power supply for up to six hours during evening peak demand periods. This supply arrangement is designed to meet the required four-hour peak power delivery requirement and support the distribution companies in managing periods of higher electricity consumption.

The project is scheduled to achieve commissioning by June 30, 2028. This timeline is significant because the distribution companies are expected to benefit from complete waivers of ISTS transmission charges on electricity supplied from the co-located battery storage component, in accordance with applicable CERC regulations.

Following the incorporation of changes relating to potential reductions in Goods and Services Tax (GST) and provisions addressing default events in line with regulatory requirements, BERC approved the procurement proposal and the draft Power Sale Agreement (PSA). The approval provides a regulatory framework for BSPHCL to proceed with the long-term renewable power procurement through SJVN.

The development represents another step towards strengthening Bihar’s renewable energy portfolio, improving power supply reliability and meeting its future renewable energy obligations.