BERC Proposes New Renewable Energy Tariff Regulations 2025, Seeks Public Feedback In Bihar
Source： solarquarter
The Bihar Electricity Regulatory Commission has issued a public notice seeking comments, suggestions, and objections on the draft Bihar Electricity Regulatory Commission (Renewable Energy Tariff) Regulations, 2025. This notice, released on August 14, 2025, under Suo-Motu Proceeding No. SMP 32/2025 invites stakeholders to participate in shaping the framework for determining tariffs for renewable energy projects in Bihar. Interested parties can send their written submissions by September 8, 2025, after which a public hearing will be held on September 12, 2025, at 11:30 a.m. in the Commission’s courtroom in Patna.
The regulations are being proposed under Section 181 of the Electricity Act, 2003, and aim to provide clarity on tariff determination for various renewable energy technologies, including solar, wind, biomass, bagasse-based cogeneration, small hydro, municipal solid waste, and refuse-derived fuel-based projects. The Commission emphasized that the new framework is needed to align with changing market realities, evolving technologies, and updated regulations from the Central Electricity Regulatory Commission (CERC).
The consultative paper explains that BERC had earlier issued Renewable Energy Tariff Regulations in 2017, which were subsequently extended up to March 31, 2024. With the expiry of the old framework, there is a need for a new set of regulations to ensure transparency and consistency in tariff determination for renewable projects in Bihar. The proposed regulations draw upon CERC’s terms and conditions for tariff determination, while making state-specific adjustments based on local conditions and requirements.
The draft regulations provide detailed principles for determining project-specific tariffs as well as generic tariffs for renewable energy technologies. The parameters considered include capital cost, debt-equity ratio, return on equity, interest on loans, depreciation, operation and maintenance expenses, working capital, and auxiliary consumption. The regulations also specify tariff periods, with a control period for issuing generic tariffs and project-specific orders to ensure cost-reflective pricing.
Special provisions are included for different renewable technologies. For instance, biomass and bagasse-based projects are given fuel price escalation factors, while solar and wind projects have specific norms for capacity utilization and performance. Small hydro projects are categorized based on capacity, with different capital cost benchmarks. For municipal solid waste and refuse-derived fuel projects, the Commission has proposed norms reflecting the higher costs and operational challenges of such projects. Standalone energy storage systems, if paired with renewable projects, will also be considered under these regulations.
The Commission has also provided guidelines for levellised tariffs, single-part and two-part tariffs, and the treatment of incentives, subsidies, and taxes. Developers are expected to disclose all relevant information to ensure transparency in tariff determination. The State Load Despatch Centre will play a role in data verification and grid integration for renewable projects.
These draft regulations, once finalized, will replace the earlier 2017 framework. The Commission has called upon stakeholders to actively provide their views so that the regulations reflect a balanced approach between investor interests, consumer protection, and the state’s renewable energy goals. The public hearing scheduled in September is expected to provide a platform for detailed discussions before the Commission issues the final regulations.