BERC consultative paper on generic levellised RE tariffs for FY 2025-26

The Bihar Electricity Regulatory Commission (BERC) has issued a Consultative Paper proposing generic levellised tariffs for power generated from specified renewable energy sources for FY 2025-26. The paper aims to set applicable tariffs for four RE categories to be commissioned in the first year of a three-year control period.

The exercise is carried out under Regulation 8 of the BERC Tariff Regulations 2025 for renewable energy. The draft proposes levellised tariffs for Biomass Power Projects with Rankine Cycle technology, non-fossil fuel-based co-generation plants, Biomass Gasifier projects, and Municipal Solid Waste or Refuse Derived Fuel projects using Rankine Cycle.

Tariffs are determined using regulatory norms. These include a three-year control period from FY 2025-26 to FY 2027-28. The useful life of projects is set between 20 and 25 years depending on technology. The debt equity ratio is 70:30. The discount factor is 9.11 percent based on weighted average cost of capital. The Commission states that the tariff will be levellised based on the year of commissioning.

For projects with a fuel cost, the tariff has fixed and variable components. The fixed cost is levellised. The fuel cost varies for each year of operation.

Capital cost norms have been proposed for FY 2025-26. Biomass projects with water cooled condensers have a proposed capital cost of Rs. 638 lakh per MW. MSW projects using Rankine Cycle have a proposed cost of Rs. 1,500 lakh per MW. The draft also sets norms for heat rate, auxiliary power consumption, plant load factor, and O&M expenses.

Two tariff versions have been calculated. One excludes accelerated depreciation. The other applies accelerated depreciation benefits. For Biomass Gasifier projects, the draft proposes Rs. 9.63 per kWh without accelerated depreciation and Rs. 9.49 per kWh with it. For MSW projects, the proposed tariff is Rs. 6.96 per kWh and Rs. 6.46 per kWh respectively.

The tariff applies to projects commissioned up to 31 March 2026. It will continue to apply after this date until a new tariff order is issued.

The document is a consultative paper. Stakeholders can send comments, objections, or suggestions until 19 January 2026. The public hearing is scheduled for 22 January 2026. The Commission may change provisions while finalizing the order.

The featured photograph is for representation only.