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Bihar Electricity Regulatory Commission (BERC) Approves 170 MW Wind Power Procurement from SJVN

The Bihar Electricity Regulatory Commission (BERC) has approved Bihar State Power Holding Company’s (BSPHCL) proposal to procure 170 MW of wind power from SJVN’s interstate transmission system (ISTS)-connected wind projects for 25 years. The procurement includes 70 MW at Rs3.98/kWh and 100 MW at Rs3.99/kWh, along with a trading margin of Rs0.07/kWh payable to SJVN. The final tariff approval is subject to the Central Electricity Regulatory Commission (CERC).

BSPHCL filed the petition, citing the need to meet its Wind Purchase Obligations (WPOs) and Renewable Purchase Obligation (RPO) targets. The procurement is expected to supply approximately 491 million units (MUs) annually to North Bihar and South Bihar power distribution companies. The company projected a shortfall of 1,500 MUs in wind power obligations by FY 2027, making long-term procurement essential. The Commission reviewed the procurement process and found the tariffs competitive and aligned with market trends. It noted that the costs were lower than Bihar's previous power purchase rates. However, approval was granted with modifications to the Power Sale Agreement (PSA). Key changes included designating BERC as the regulatory authority, aligning the PSA with the 25-year wind project lifespan, and removing state government guarantees and additional payment security provisions.

The Commission clarified that ISTS charge waivers would only apply to wind projects commissioned by June 30, 2025, with reduced waivers for later projects. Additionally, the procurement process followed the Ministry of Power’s July 2023 guidelines, meaning it did not qualify for the full ISTS loss waiver, which only applies to bids before January 2021.