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BERC Clears 190 MW Assured Peak Power Procurement from Hybrid Project

The Bihar Electricity Regulatory Commission (BERC) has granted approval to Bihar State Power Holding Company (BSPHCL) to procure 190 MW of assured peak power through an interstate transmission system (ISTS)-connected wind–solar hybrid project integrated with a co-located battery energy storage system (BESS).

The procurement falls under the Solar Energy Corporation of India’s (SECI) Hybrid Tranche-VI program and will secure power supply for a period of 25 years. The approved tariff stands at Rs4.72 (~$0.0522)/kWh, along with SECI’s trading margin of Rs0.07 (~$0.0008)/kWh, in line with rates previously adopted by the Central Electricity Regulatory Commission (CERC).

Project Structure and Supply Details
The selected capacity forms part of the 600 MW assured peak power capacity offered by SECI. The 190 MW allocation has been awarded to ACME Solar Holdings.

The hybrid project combines wind and solar generation with a battery energy storage system designed to deliver five hours of continuous power during peak demand periods, primarily in non-solar hours. This represents an enhancement over the originally planned four-hour supply window.

Power supply will be governed by a power sale agreement (PSA) between BSPHCL and SECI. The project is expected to be commissioned within 24 months of signing the power purchase agreement, enabling eligibility for applicable ISTS transmission charge waivers.

Addressing RPO and RCO Gaps
In its petition, BSPHCL highlighted increasing challenges in meeting Renewable Purchase Obligation (RPO) and Renewable Consumption Obligation (RCO) targets.

Projected shortfalls include:

• RPO deficit: 910 million units (MU) in FY 2026–27, rising to 4,347 MU by FY 2029–30
• RCO deficit: 6,983 MU in FY 2026–27, increasing to 11,991 MU by FY 2029–30

BSPHCL argued that securing long-term assured peak power would reduce reliance on volatile power exchange markets during high-demand periods and strengthen round-the-clock supply reliability.

Under SECI’s bidding process, discovered tariffs ranged between Rs4.64 and Rs4.73/kWh, with the final supply price fixed at Rs4.72/kWh.

Regulatory Observations and Modifications
While approving the proposal, BERC reviewed the petition, written submissions, and oral arguments, and directed revisions to certain provisions in the draft PSA. These included:

• Clarification of the State Government guarantee mechanism
• Flexibility in peak power discharge scheduling
• Clear declaration of maximum and minimum energy supply
• Treatment of peak hours if not declared in advance by distribution companies

In response, BSPHCL submitted a revised PSA specifying that the existing tripartite agreement among the Reserve Bank of India, the Central Government, and the State Government would serve as the required guarantee framework.

System Impact and Transmission Benefits
BERC noted that Bihar’s grid is likely to remain surplus during solar generation hours but may face deficits during non-solar peak periods, particularly between April and October. The Commission observed that reliance on power exchanges during peak hours has proven unreliable, even at ceiling prices, affecting supply assurance.

Although the hybrid project may add to surplus generation during solar hours, the integrated BESS is expected to substantially address peak-hour shortages. The Commission also emphasized that the project will contribute toward meeting both RPO and RCO compliance trajectories.

Since the project is expected to be commissioned before June 30, 2028, it will qualify for:

• 25% ISTS transmission charge waiver for wind and solar components
• 100% ISTS transmission charge waiver for power supplied from the co-located BESS

With this approval, Bihar strengthens its strategy to secure reliable peak power while advancing renewable energy compliance and grid stability objectives.