The Bihar Electricity Regulatory Commission has approved a major renewable-energy proposal from Bihar State Power Holding Company Limited, allowing the state to procure 200 MW of solar power supported by a 100 MW/400 MWh energy-storage system. The power will be sourced from the Solar Energy Corporation of India under the ISTS-connected Tranche-XV Scheme on a long-term basis.

BSPHCL warned the commission that Bihar is heading towards a significant shortfall in meeting its Renewable Purchase Obligations. Without additional renewable capacity, the state’s RPO deficit could reach 926 million units in FY 2026–27 and rise to nearly 6.924 billion units by 2029–30. The commission reviewed these projections and agreed that new renewable procurement is essential to avoid breaching national and state-level mandates.

A key challenge outlined in the petition was Bihar’s worsening evening peak-hour demand—from 7 p.m. to 11 p.m.—where shortages have reached up to 2,100 MW. While the state has surplus solar energy during the day, it has relied on costly and uncertain power exchange purchases in the evenings. To resolve this, BSPHCL sought a solar-plus-storage project from SECI. The selected project, offered by ACME Solar Holdings, combines 200 MW of solar with a four-hour battery storage system. The discovered tariff is Rs 3.42 per kWh, with an additional trading margin of Rs 0.07 per kWh payable to SECI. The commission found the tariff reasonable, especially when compared with volatile peak-market prices.

The commission noted that the project will help Bihar meet its renewable targets while ensuring firm, dispatchable power during peak hours. The storage system is expected to enhance reliability substantially, with the project estimated to generate around 443.25 million units annually.

Financial savings also influenced the approval. Because the developer will commission the solar component before 30 June 2027, Bihar’s discoms will receive a 50 per cent waiver on ISTS charges for 25 years. Energy from the battery system, to be commissioned before 30 June 2028, will receive a full 100 per cent ISTS waiver. These waivers are projected to result in net savings of about Rs 3.713 billion, compared with a financial liability of Rs 2.913 billion during 2027–2031.

In its final order, issued by a quorum led by Chairman Amir Subhani, the commission confirmed that the procurement is necessary to bridge RPO gaps and secure reliable evening supply, meeting both economic and operational needs for the state.