Bihar Approves 300 MW Solar Power With 4-Hour Battery Storage at INR 3.13 per Unit

The Bihar Electricity Regulatory Commission (BERC) has approved a proposal by Bihar State Power Holding Company Limited (BSPHCL) to procure 300 MW of solar power integrated with a four-hour Battery Energy Storage System (BESS), marking an important step towards strengthening the state’s renewable energy supply and improving electricity availability during peak demand periods. The approval will enable Bihar’s distribution companies, North Bihar Power Distribution Company Limited and South Bihar Power Distribution Company Limited, to secure renewable electricity through a long-term power procurement agreement for 25 years.

The electricity will be procured through NHPC Limited, which will act as the intermediary procurer. SAEL Industries India Limited has been selected as the project developer to supply 300 MW of power from a larger 1,200 MW interstate transmission system-connected renewable energy project. Under the approved arrangement, the discovered tariff is ₹3.13 per kilowatt-hour, while NHPC will receive an additional trading margin of ₹0.07 per kilowatt-hour. The Central Electricity Regulatory Commission had previously adopted the competitively discovered tariff in April 2026.

The project includes a four-hour battery storage facility designed to provide 150 MW of firm electricity during evening peak demand hours, between 6:00 PM and midnight. This arrangement is expected to help Bihar manage its rising electricity demand and improve the reliability of power supply when solar generation is unavailable or reduced. The storage component will play an important role in shifting renewable electricity to periods when consumption is higher.

The commission has also established strict performance requirements to ensure reliable electricity delivery. The developer must maintain at least 70 percent of the contracted peak capacity on a monthly basis and 85 percent annually. Failure to meet these requirements will attract financial penalties calculated at 1.5 times the applicable tariff rate for the shortfall. These provisions are intended to ensure that the project delivers the required electricity consistently.

The regulatory approval was granted by a commission comprising Chairman Amir Subhani, Member Legal P. S. Yadav and Member Technical Manoj Kumar. While examining the petition, the commission considered the national Resource Adequacy framework and Bihar’s growing electricity requirements. It observed that the procurement would help the state address its Renewable Purchase Obligation requirements through FY 2029-30.

The project is also expected to reduce Bihar’s dependence on expensive short-term electricity purchases, particularly during evening peak hours. By securing long-term renewable power supported by battery storage, distribution companies will have an additional source of reliable electricity, potentially reducing the need for load shedding and improving consumer supply conditions.

SAEL Industries India Limited is expected to operationalise the project on or before June 30, 2028. Achieving this deadline will allow the state to benefit from transmission charge waivers, including a 25 percent waiver on interstate transmission charges for the solar component and a 100 percent waiver for electricity supplied from the co-located battery storage system.

Additionally, BERC has approved a modified Power Sale Agreement incorporating consumer protection provisions. These provisions will account for potential tariff reductions arising from future changes in Goods and Services Tax rates. The decision is expected to support Bihar’s renewable energy transition while balancing electricity supply reliability, procurement costs and consumer interests.