The Jharkhand State Electricity Regulatory Commission (JSERC) has approved a power sale agreement (PSA) between Bokaro Steel (BSL), a Steel Authority of India (SAIL) company, and Solar Energy Corporation of India (SECI) for the purchase of 100 MW of solar power.

The Commission sanctioned the agreement with a solar power tariff of Rs 2.85/kWh, comprising Rs 2.50/kWh as the solar power developer’s rate, Rs 0.07/kWh as SECI’s trading margin, and Rs 0.28/kWh for the estimated financial impact of basic customs duty (BCD) and GST. The purchase will also remain exempt from interstate transmission system (ISTS) charges if the project is commissioned by June 30, 2025, under CERC Regulation 2023.

Bokaro Steel’s move to procure solar power aligns with its renewable purchase obligations and offers cost stability compared to its current power supply from the Damodar Valley Corporation (DVC), priced at Rs 4.05/kWh. The long-term solar power deal is expected to reduce costs and provide financial relief by securing a fixed tariff over 25 years.

In June 2024, JSERC had recognised Bokaro Steel’s cogeneration plants as fulfilling renewable purchase obligations, citing their environmental benefits, including reduced emissions and fossil fuel conservation.

(pib)