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JSERC Approves Bokaro Steel-SECI PSA for 100 MW Solar Power at Rs2.85/kWh

The Jharkhand State Electricity Regulatory Commission (JSERC) has approved the power sale agreement (PSA) between Bokaro Steel (BSL), a subsidiary of SAIL, and Solar Energy Corporation of India (SECI) for purchasing 100 MW of solar power. The PSA was approved at a tariff of Rs 2.85/kWh, including:

• Rs 2.50/kWh for the solar power developer (SPD)
• Rs 0.07/kWh as SECI’s trading margin
• Rs 0.28/kWh to account for BCD and GST impact

Key Highlights of the Approval

• ISTS Charges Exempted: No interstate transmission charges will be applicable if the project is commissioned before June 30, 2025, under CERC Regulation, 2023.
• RPO Compliance: The deal helps Bokaro Steel meet its Renewable Purchase Obligation (RPO) mandate as per JSERC regulations.
• Cost Advantage: The PSA tariff of Rs 2.85/kWh is significantly lower than DVC’s existing power cost of Rs 4.05/kWh, ensuring long-term cost savings.
• Regulatory Backing: JSERC emphasized that the agreement supports India’s renewable energy goals and provides financial relief to Bokaro Steel and consumers in Bokaro Steel City.

Background & Impact

• Bokaro Steel currently sources power from Bokaro Power Supply Company and Damodar Valley Corporation (DVC) through captive generation.
• The shift to solar power aligns with national and state policies promoting renewable energy adoption.
• In June 2024, JSERC had recognized Bokaro Steel’s cogeneration plants as contributing to RPO compliance due to their low emissions and fossil fuel conservation benefits.

By securing 100 MW of solar power at a fixed rate, Bokaro Steel ensures cost stability and compliance, marking a strategic shift towards clean energy procurement.