Bihar (BERC) Gives Green Signal to 600 MW Solar Purchases From SECI

The Bihar Electricity Regulatory Commission (BERC) has given nod to procurement of 600 MW of solar power from Solar Energy Corporation of India (SECI) in Tranche-VIII by the distribution companies (DISCOMS). BERC has allowed the procurement at a tariff of Rs 2.50/kWh. The trading margin has been kept by the regulator at Rs 0.07 for every kWh.

Bihar State Power Holding Company or BSPHC had filed an instant suit on behalf of all DISCOMs of Bihar whereby it sought approval for the purchase of 600 MW of solar power from SECI. The procurement was to be held under the interstate transmission system programme.

The petition before BERC sought approval for a long term basis of the solar power purchase including Power Sale Agreement (PSA).

The procurement and supply was linked to SECI’s 2020 tender for 1200 MW of solar power where SBE Renewable Fifteen was awarded 600 MW in reverse auction at Rs 2.50.kWh. Bihar State Power Holding Company argued that the procurement of 600MW of solar energy will meet the renewable purchase obligation or RPO target as the anticipated renewable purchase obligation or RPO for solar energy was showing continued deficit until year 2029-30.

The BERC order found that SECI tariff was competitive and lower than DISCOMs’ average cost of power purchase for financial year 2022-23. BERC also said that renewable energy purchase is valid towards fulfilling the renewable purchase obligation targets.

BERC also held that SECI sold renewable power to different states of India at discovered prices. SECI also sold to the DISCOMs of Bihar on similar lines. It BERC order read that for the adoption of instant discovered price, Central Electricity Regulation Commission (CERC) was the appropriate body.

The Central Government had fixed a target of 2,969 MW of solar power for Bihar to be achieved by 2022 to allow the country to achieve 100 GW of solar based power generation. The state remains dependent on external procurement for now, with internal solar generation yet to cross even 500 MW till date.