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BERC approves the proposal of procuring 400 MW wind power

Featured Image Wind Power Plant: Flickr

Bihar Electricity Regulatory Commission (BERC) has approved the procurement of 400 MW wind power by Bihar State Power Holding Company Limited (BSPHCL). BSPHCL on behalf of Bihar’s DISCOMs had petitioned before the state regulatory commission for tariff adoption fo these projects. BSPHCL has entered two Power Sale Agreements (PSA) with Solar Energy Corporation of India (SECI). One for a 100 MW wind project and the other of 300 MW.

While handing out the order, BERC had expressed its limitation in adopting the tariff since the procurement of wind power would be through SECI which is the nodal agency for deploying renewable energy projects under the central government scheme. SECI will purchase wind power from various states. Therefore the Central Electricity Regulatory Commission (CERC) is the appropriate commission to fix or revise the tariff.

Therefore instead of fixing the tariff BERC has examined the following:

  • If it is necessary for Bihar DISCOMs to procure wind energy
  • The cost-effectiveness of the rate

The necessity of wind power in Bihar

The commission in the order has observed that Bihar is a non-windy state and at the same time, the state DISCOMs are obligated to meet their Renewable Purchase Obligation (RPO) targets. In doing so they have to meet both: Solar and Non-Solar RPO. Being a non-windy state Bihar has to procure wind energy from windy states.

From the Multi-Year Tariff (MYT) petition BERC further makes an observation on the energy requirement and its availability from a period between FY20 to FY22.

BERC approves the proposal of procuring 400 MW wind power

BERC approves the proposal of procuring 400 MW wind power
Source: BERC Order

The commission finds that although the purchase of 400 MW wind power is for meeting the RPO it will result in surplus energy. Bihar DISCOMs can use surplus power to replace the costly power from conventional sources. This will reduce the overall power purchase cost of the DISCOMs. Therefore DISCOMs need to procure the wind power.

Examination of the rate of power purchase

BSPHCL will purchase 100 MW and 300 MW wind power at INR 2.72 and INR 2.52 per unit. The wind tariffs include the trading margin of SECI- INR 0.07 per unit. BERC observes that the tariffs are much lesser than the weighted average APPC of Bihar DISCOMs which is INR 4.207 per unit. The rates of wind energy are therefore reasonable.

Post Author: Ankur Kumar Jha

Founder SolarDae || MBA Power Management || B.E (Mechanical)

Ankur analyses mainstream media coverage of renewable energy in general and solar in particular; he tracks the ongoing development of regulations and policies and incorporates them in his opinion. He can be reached at +91-8860726731 for any assistance in rooftop solar and utility-scale projects.

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