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Bihar invites suggestion for tariff of renewable energy

According to reports, the Bihar Electricity Regulatory Commission (BERC) has invited suggestions, latest by August 6, from the public and all stakeholders, including the state government, Bihar State Electricity Board (BSEB) and industries associations of Bihar for fixing the tariff for power to be generated from the plants to use renewable energy sources.

The BERC has to promote power generation from biomass-based and bagasse-based plants by providing suitable infrastructure for connectivity with the power grid and sale of electricity to anyone.

The commission has to determine the tariff for generation, supply, transmission and sale of electricity, in wholesale as well as in retail, within the state under section 86 (1A) of the Electricity Act. 2003, the BERC secretary said in the notification issued for the purpose.

The BERC has prepared a draft paper for a wide range of discussion on the various aspects of determining the tariff of energy generated from renewable energy, its cost dynamics and rebate to be given to the consumers. Though, Bihar is yet to start power generation from renewable sources, several agencies are interested in setting up small power plants through sugarcane units.

The commission is empowered to specify the terms and conditions for determining the tariff under section 62 of the Act. By doing so it has also to promote cogeneration and generation of electricity from renewable source of energy.

The Central Electricity Regulatory Commission (CERC) has specified that the discount factor should also be considered while computing tariff. However, no biomass-based power plant has been able to supply electricity to the state. Only one company has signed the power purchase agreement (PPA) with the BSEB, and that too on November 22, 2010, for supply of 3MW of power from biomass-based power plant. But the evacuation system is yet to be constructed, said an official.

Recently, five bagasse-based cogeneration plants have signed PPAs with the BSEB for supply of 66.54MW of power during the crushing season and 82.05MW during the off season.

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