Author: PPD Team Date: 02/04/2025
The Bihar Electricity Regulatory Commission (BERC) has proposed integrating distributed renewable energy (DRE) into the state’s renewable purchase obligation (RPO) framework for the financial year (FY) 2030. This move aims to promote smaller renewable projects while adjusting targets for wind and hydropower.
As per the draft Bihar Electricity Regulatory Commission (Renewable Purchase Obligation, its Compliance, and REC Framework Implementation) Regulations, 2025, the RPO for DRE has been set at 4.5 per cent by FY 2030. To accommodate this, the wind and hydropower obligations have been reduced to 3.48 per cent and 1.33 per cent, respectively. However, the RPO for other renewables has increased to 34.02 per cent. Despite these shifts, the overall RPO target remains unchanged at 43.33 per cent, with energy storage included under other renewables.
BERC has invited public and stakeholder feedback on these proposed targets until April 16, 2025.
Compliance and procurement guidelines
For wind energy, projects commissioned after March 31, 2024, need to ensure at least 7 per cent of their generated power is consumed. Any shortfall can be offset by surplus hydropower. Hydropower obligations can be met using free power from state-commissioned projects or through additional purchases and renewable energy certificates if needed.
The DRE category includes projects below 10 MW, such as small-scale solar installations under various metering arrangements. RPO compliance will be measured in kilowatt-hours (kWh), with calculations based on standard output estimates. Other renewable obligations can be met through any renewable energy projects commissioned before April 1, 2025.
DISCOMs are required to procure all power generated from waste-to-energy projects. They can also count renewable energy sourced from prosumers, subject to certain conditions. The RPO framework will also apply to captive and open-access consumers.
Penalties for non-compliance
Entities obligated to meet RPO targets can do so through self-generation, direct procurement, or purchases from open-access developers and trading platforms. They may also use renewable energy certificates, green hydrogen, or green ammonia, with equivalency determined by the Central Electricity Regulatory Commission.
Failure to comply will result in penalties. Defaulting entities shall contribute to a separate fund dedicated to renewable energy development and transmission infrastructure. DISCOMs failing to deposit penalties within 15 days will violate licensing conditions.
In exceptional cases, entities can seek BERC’s approval to defer obligations. However, excess renewable purchases will not be carried forward to future years.