BERC issues new renewable energy tariff regulations for 2025–28

The Bihar Electricity Regulatory Commission (BERC) has notified the BERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, 2025, establishing a revised framework for renewable energy tariffs in the state. The regulations, effective retrospectively from April 1, 2025, will remain in force until March 31, 2028. They replace the 2022 regulations and aim to provide financial clarity, promote investment, and align Bihar’s renewable energy policies with national norms.

The Commission initiated the process through a suo motu proceeding to bring state-level norms in line with the Central Electricity Regulatory Commission’s (CERC) 2024 guidelines. A draft version was released for public consultation in August 2025, seeking input from stakeholders including distribution companies (DISCOMs), the Bihar Renewable Energy Development Agency (BREDA), and industry representatives.

After reviewing the feedback, BERC incorporated several key changes into the final version. These include clarifying that new units added to existing bagasse-based cogeneration plants are eligible under the framework and expanding coverage to include non-fossil fuel cogeneration projects eligible for tariff determination through competitive bidding. The definition of the ‘State Nodal Agency’ was refined to designate BREDA explicitly, and the useful life of Refuse Derived Fuel (RDF)-based power projects was revised from 25 years to 20 years.

The new framework covers a broad range of renewable energy technologies, including biomass, non-fossil fuel cogeneration, solar photovoltaic (PV), solar thermal, floating solar, small hydro, wind, and hybrid systems. It defines standard financial and operational parameters such as a 70:30 debt-equity ratio, 14% return on equity, capital cost benchmarks, and annual O&M escalation factors. All renewable projects, except larger biomass and cogeneration units, are designated as ‘Must Run’ facilities to ensure grid priority.

Tariffs for solar and wind projects will primarily be determined through competitive bidding, while generic tariffs are set for biomass, cogeneration, and waste-to-energy projects. The regulations also include provisions for working capital requirements, late payment surcharges, and treatment of subsidies.

The 2025 framework provides a clear and stable policy base to attract private investment and ensure cost-effective renewable energy growth in Bihar over the next three years.

The featured photograph is for representation only.