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Bihar Sets Renewable Purchase Obligation Target of 43% by FY 2030

The Bihar Electricity Regulatory Commission (BERC) has set a target for the state to meet 43.33% of its energy requirements from renewable sources by the financial year 2030. The new regulations expand the definition of renewable energy to include distributed generation, hydro, wind, and storage-linked green energy projects.

The Renewable Purchase Obligation (RPO) rules apply to distribution licensees (DISCOMs), conventional captive generators of 1 MW and above, non-renewable cogeneration projects, and open-access consumers procuring conventional power. For entities drawing partly from open access or captive generation and partly from DISCOMs, the obligation applies only to consumption outside the DISCOM supply.

Under the regulations:

• Wind energy: Obligations must be met through projects commissioned after March 31, 2024. Shortfalls can be offset with excess hydro energy, and vice versa.
• Hydropower: Obligations include small hydro and pumped storage projects commissioned after March 31, 2024, along with free power allocated to the state or DISCOMs. Any remaining shortfall can be met by additional hydro power procurement or Renewable Energy Certificates (RECs).
• Distributed renewable energy: Projects below 10 MW, including solar (net and gross metering) and other notified renewable sources, count toward compliance. Reported capacity is converted into energy using a multiplier of 3.5 kWh/kW/day if generation data is unavailable.
• Other RPOs: Obligations can be fulfilled through any renewable energy source, including surplus wind or hydro energy, energy purchased from exchanges, or bundled renewable power.

DISCOMs can also include renewable energy generated by prosumers under gross or net metering, provided the prosumer is not an obligated entity. Waste-to-energy projects must be fully procured by DISCOMs. Obligated entities may meet their RPO through self-generation, open access, trading licensees, power markets, or by purchasing RECs.

Definition of green energy under the rules includes hydro and storage utilizing renewable energy, as well as mechanisms like green hydrogen and green ammonia production. RECs remain valid instruments to meet RPO requirements, with proof of purchase required within one month.

The Bihar Renewable Energy Development Agency (BREDA) is tasked with accrediting projects, recommending registration, and monitoring compliance. BREDA will submit half-yearly compliance reports to the Commission and recommend corrective action if required.

DISCOMs must provide estimates of renewable energy procurement in their annual performance review or tariff petitions. Failure to meet RPO targets when renewable energy is available will attract compensation and penalties. If obligations are unmet and RECs are not purchased, the Commission can direct the entity to deposit funds into a special renewable energy fund, which will be used for REC purchases or transmission infrastructure development.

Entities unable to meet their RPO due to circumstances beyond their control may request to carry forward the compliance to the next year; however, any excess renewable energy purchased will not be credited forward.