For Prelims: BERC (Bihar Electricity Regulatory Commission), Renewable Purchase Obligation (RPO), Battery Energy Storage System (BESS), SJVN (Satluj Jal Vidyut Nigam), CERC (Central Electricity Regulatory Commission)
For Mains: Economy: Infrastructure: Energy; Governance: Regulatory bodies: Electricity Regulatory Commissions
Source:
Hindustan
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- Bihar will get 200 MW renewable power from SJVN.
- The tariff is ₹4.25 per unit.
- The power purchase agreement is for 25 years.
- The project must be commissioned by 30 June 2028.
- BERC approved the PPA; CERC approved the tariff.
The news
The Bihar Electricity Regulatory Commission (BERC) has approved a 25-year power purchase agreement (PPA) between the state and Satluj Jal Vidyut Nigam (SJVN) for 200 MW of renewable energy, officials said. The tariff has been fixed at ₹4.25 per unit, determined through a competitive bidding process and already approved by the Central Electricity Regulatory Commission (CERC). The project will benefit about two crore consumers in Bihar.
The power will be supplied using solar and wind energy together with battery energy storage (BESS), with the storage component designed to supply 200 MW during the evening peak for four hours, extendable to six hours. The project is to be commissioned by 30 June 2028. BERC said in its order that Bihar's renewable energy procurement is expected to fall short of its targets in the coming years, making this purchase necessary. The state power holding company had proposed the agreement on behalf of the North and South Bihar power distribution companies to meet rising demand and comply with the Renewable Purchase Obligation (RPO). The project also qualifies for a 100% waiver of inter-state transmission charges for power from the battery storage system.
Why in the news?
BERC has formally approved a 25-year PPA with SJVN for 200 MW of renewable power at ₹4.25 per unit, a decision that will reduce Bihar's dependence on costly spot-market electricity during peak hours and help the state meet its RPO targets.
Why does Bihar need this power purchase?
Bihar faces rising electricity demand, especially during evening peak hours, when it has historically relied on expensive power purchased from the spot market. The state also has a statutory obligation under the Electricity Act, 2003 to meet its Renewable Purchase Obligation (RPO) targets, which require a minimum share of electricity from renewable sources. The state's own renewable energy generation capacity has been limited, making power procurement from central generating stations like SJVN a strategic necessity.
What makes the tariff and storage component significant?
The approved tariff of ₹4.25 per unit is competitive and has been validated through a transparent bidding process, with CERC's prior approval. The use of battery energy storage (BESS) is a notable feature, enabling the supply of firm power during peak demand, which is typically a challenge for intermittent renewables like solar and wind. The 100% waiver of inter-state transmission charges for BESS power further reduces the effective cost. For Bihar's two crore consumers, this translates to more reliable and affordable electricity, while the state's power distribution companies benefit from reduced market dependence and better RPO compliance.
Bihar connection
Facts and terms for exams
- BERC (Bihar Electricity Regulatory Commission):
- The state electricity regulatory commission for Bihar, established under the Electricity Act, 2003, responsible for tariff regulation, licensing, and power procurement approvals within the state.
- Renewable Purchase Obligation (RPO):
- A statutory requirement under the Electricity Act, 2003, obligating electricity distribution companies to purchase a minimum percentage of their total power from renewable energy sources.
- Battery Energy Storage System (BESS):
- A technology that stores electrical energy in batteries for later use, enabling the supply of firm, dispatchable power from intermittent renewable sources like solar and wind.
- SJVN (Satluj Jal Vidyut Nigam):
- A central public sector undertaking under the Ministry of Power, primarily engaged in hydroelectric power generation, but also diversifying into solar, wind, and other renewable energy projects.
- CERC (Central Electricity Regulatory Commission):
- The central regulatory body under the Electricity Act, 2003, that regulates the tariff of generating companies owned or controlled by the central government and inter-state transmission of electricity.
Why it matters for exams
Exams: BPSC, BSSC
Syllabus: Economy: Infrastructure: Energy; Governance: Regulatory bodies: Electricity Regulatory Commissions
Common mistake: Examiners may swap 'Bihar Electricity Regulatory Commission (BERC)' with 'Central Electricity Regulatory Commission (CERC)' for the approval body, or confuse the 200 MW capacity with the total project cost. The approval is by BERC, not CERC, though CERC has also approved the tariff.
Mains question
Discuss the role of battery energy storage systems (BESS) in integrating renewable energy into the grid, with reference to Bihar's recent power procurement.
Stuck? Get it in one tap
Bihar's electricity regulator, BERC, has approved a deal to buy 200 MW of electricity from SJVN for 25 years at ₹4.25 per unit. This power will come from a mix of solar, wind and battery storage, so it will be available even when the sun is not shining or the wind is not blowing. The project will help Bihar meet its peak-hour demand while reducing its dependence on expensive power from the open market and also meet its legal requirement to use renewable energy.
- Bihar will get 200 MW renewable power from SJVN.
- The tariff is ₹4.25 per unit.
- The power purchase agreement is for 25 years.
- The project must be commissioned by 30 June 2028.
- BERC approved the PPA; CERC approved the tariff.
- Economy: Infrastructure: Energy
- Governance: Regulatory bodies: Electricity Regulatory Commissions
Related concepts: BERC (Bihar Electricity Regulatory Commission), Renewable Purchase Obligation (RPO), Battery Energy Storage System (BESS), SJVN (Satluj Jal Vidyut Nigam)
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which state regulatory commission approved the 25-year power purchase agreement (PPA) for 200 MW renewable power from SJVN?
Explanation: The Bihar Electricity Regulatory Commission (BERC) approved the PPA. The Central Electricity Regulatory Commission (CERC) had earlier approved the tariff, but the state-level approval for procurement was done by BERC. The other options include a central commission and two commissions of other states.
- Q2Hard
Consider the following statements regarding Bihar's 200 MW renewable power procurement:
- 1.The power will be supplied by SJVN under a 25-year power purchase agreement.
- 2.The tariff of ₹4.25 per unit was determined through a competitive bidding process and approved by BERC.
- 3.The project will supply 200 MW of power for 6 hours during the evening peak, extendable to 8 hours.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct: the 25-year PPA is with SJVN. Statement 2 is correct: the tariff was determined through competitive bidding and approved by BERC. Statement 3 is incorrect: the project will supply 200 MW for 4 hours during the evening peak, extendable to 6 hours, not 6 hours extendable to 8 hours.
- Q3Easy
What is the per-unit tariff approved by BERC for the 200 MW renewable power from SJVN for Bihar?
Explanation: The approved tariff is ₹4.25 per unit. ₹3.50 is lower than approved, ₹5.00 and ₹4.75 are higher. The tariff was determined through a competitive bidding process and also approved by CERC.
- Q4Medium
What is the primary objective of Bihar procuring 200 MW of renewable power with battery storage?
Explanation: The project will reduce the need to buy expensive power from the market during peak hours and help meet the state's Renewable Purchase Obligation (RPO).
Frequently asked questions
1. How much power will Bihar get from SJVN under this project?
Bihar will get 200 MW of renewable power (solar, wind and battery storage) from SJVN; the battery component will supply 200 MW in the evening for 4 hours, extendable to 6 hours.
2. What is the per-unit cost of this power?
The tariff is ₹4.25 per unit, determined through competitive bidding and approved by BERC and CERC.
3. Who approved this power purchase agreement?
The Bihar Electricity Regulatory Commission (BERC) approved the 25-year power purchase agreement.
4. By when will this project be commissioned?
The project is to be commissioned by 30 June 2028.
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- Original11 November 2026 · Read story
