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					</table>The Bihar Electricity Regulatory Commission (<a href="https://berc.co.in/" target="_blank" rel="noopener">BERC</a>) has issued a suo motu order determining the generic levelized tariffs for biomass, cogeneration, gasifier, municipal solid waste (MSW), and refuse-derived fuel (RDF)-based renewable energy projects for the financial year (FY) 2025–26.
The generic levelized tariffs will apply to projects commissioned on or after April 1, 2025, and remain in effect through March 31, 2026, or until the issuance of the next generic tariff order, whichever is earlier. The tariffs apply to projects located in Bihar and supplying electricity within the state.
The tariff for biomass gasifier projects has been set at ₹9.49 (~$0.104)/kWh after accelerated depreciation (AD), compared to ₹9.12 (~$0.100)/kWh in the previous financial year.
Non-fossil fuel-based cogeneration projects using bagasse have been assigned a tariff of ₹7.77 (~$0.085)/kWh after AD, up from ₹7.40 (~$0.081)/kWh in FY 2024–25. Cogeneration projects using fuels other than bagasse have been allotted a tariff of ₹8.48 (~$0.093)/kWh after AD, compared to ₹8.05 (~$0.088)/kWh in the previous year.
MSW-based projects using Rankine cycle technology have been allotted a tariff of ₹6.48 (~$0.071)/kWh after AD, marginally lower than ₹6.51 (~$0.071)/kWh in the previous financial year.
RDF-based projects have been assigned a tariff of ₹9.23 (~$0.101)/kWh after AD, compared to ₹9.13 (~$0.100)/kWh in FY 2024–25.
For biomass projects based on Rankine cycle technology, the tariff ranges between ₹9.55 (~$0.104)/kWh and ₹10.12 (~$0.111)/kWh after AD, depending on fuel type and cooling configuration. In the previous financial year, the tariff ranged between ₹9.55 (~$0.104)/kWh and ₹10.10 (~$0.110)/kWh, depending on configuration.
Capital Cost Benchmarks
BERC has approved normative capital costs for FY 2025–26, depending on technology and configuration.
For biomass projects based on Rankine cycle technology, capital costs range from ₹638 lakh (~$0.697 million)/MW to ₹744 lakh (~$0.814 million)/MW, depending on biomass type and condenser configuration.
The capital cost for non-fossil fuel-based cogeneration projects has been set at ₹562 lakh (~$0.614 million)/MW, while biomass gasifier projects have been assigned a capital cost of ₹677 lakh (~$0.740 million)/MW.
For waste-to-energy projects, the capital cost for MSW-based projects has been set at ₹1,500 lakh (~$1.640 million)/MW and for RDF-based projects at ₹900 lakh (~$0.984 million)/MW.
The Commission has clarified that these capital cost norms will remain valid for the control period unless reviewed earlier.
Financial Norms
The Commission has adopted a normative debt-equity ratio of 70:30 for tariff computation.
The discount factor used for levelization has been determined at 9.11%, representing the post-tax weighted average cost of capital based on normative debt and equity components.
Return on Equity has been considered at 14% post-tax, grossed up based on the applicable tax rates for the tariff period. The normative loan tenure has been fixed at 15 years.
The interest rate on term loans has been computed at 10.99%, derived from the average State Bank of India marginal cost of funds-based lending rate (MCLR) for a one-year tenor plus the applicable regulatory spread.
Depreciation has been calculated at 4.67% annually for the first 15 years, with the remaining depreciation spread over the balance of the useful life, subject to the regulatory ceiling of 90% of the capital cost.
Useful Life and Levelization
For tariff computation, the useful life has been considered 25 years for biomass, biomass gasifier, and non-fossil-fuel-based cogeneration projects.
For MSW and RDF-based projects, the useful life has been specified as 20 years.
The levelized tariffs have been derived by discounting cash flows over the useful life of each technology using the approved discount rate.
Operating Parameters
The Commission has specified plant load factor (PLF) norms for fixed cost recovery. Biomass projects based on Rankine cycle technology have been assigned a PLF of 80%, while biomass gasifier projects have a PLF of 85%.
Non-fossil fuel-based cogeneration projects have a PLF of 53%. MSW and RDF-based projects have an initial PLF of 65%, with MSW projects increasing to 75% and RDF projects to 80% in subsequent years as stabilization occurs.
Auxiliary power consumption norms vary by technology and configuration. Biomass projects using water-cooled condensers have lower auxiliary consumption compared to air-cooled configurations. Non-fossil fuel-based cogeneration projects have an auxiliary consumption norm of 8.5%, biomass gasifier projects 10%, and MSW/RDF-based projects 15%.
Station heat rates and gross calorific values have also been specified to standardize fuel consumption assumptions for tariff computation.
Fuel Cost Assumptions
For FY 2025–26, the Commission has set  the biomass fuel price at ₹4,472.72 (~$48.90) per metric ton with a normative annual escalation of 3.45%.
The bagasse price has been determined at ₹2,859.32 (~$31.25) per metric ton, while the RDF price for tariff determination will be ₹2,620.49 (~$28.64) per metric ton.
No fuel cost has been considered for MSW-based projects for tariff determination.
Interest on Working Capital
Interest on working capital has been computed at 12.24%, based on the average SBI MCLR for a one-year tenor plus a regulatory margin of 325 basis points.
The working capital requirement includes fuel stock where applicable, operation and maintenance expenses for one month, maintenance spares at 15% of O&amp;M expenses, and receivables equivalent to 45 days of billing.
Accelerated Depreciation Treatment
The Commission has clarified that income tax benefits arising from accelerated depreciation have been factored into tariff determination where applicable.
Generators seeking tariff approval or tariff pass-through are required to submit certified declarations confirming that they have not claimed and will not claim additional depreciation under the Income Tax Act beyond what has been considered for tariff computation.
In October last year, BERC <a href="https://www.mercomindia.com/bihar-sets-renewable-purchase-obligation-target-of-43-by-fy-2030" target="_blank" rel="noopener">set</a> a target of meeting 43.33% of its energy requirements from renewable sources by the financial year 2030.
Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Bihar Announces Generic Renewable Energy Tariffs for FY 2026

The Uttar Pradesh Electricity Regulatory Commission (<a href="https://www.uperc.org/" target="_blank" rel="noopener noreferrer">UPERC</a>) has extended the scheduled commissioning date (SCOD) for a 14 MW municipal solid waste (MSW)-based power project in Agra.
It also directed the involved parties &#8211; Spaak Bresson Private Limited and Uttar Pradesh Power Corporation Limited (<a href="https://www.upenergy.in/" target="_blank" rel="noopener noreferrer">UPPCL</a>) &#8211; to get approval for the supplemental power purchase agreement (SPPA) at least one month before the plant is commissioned.
Background: 
Spaak Bresson had filed a petition with the UPERC seeking approval for its amended PPA to purchase 14 MW of power from an MSW project in Agra. The generating company could not commission the power project by the scheduled commissioning date and sought a one-year extension until February 2020.
The company further sought for the UPPCL to extend the SCOD of the project by 18 months to August 2021 since it was not able to acquire a no objections certificate from the Taz Trapazium Zone Authority (TTZ). The UPPCL approved both the SCOD extension requests and signed an SPPA with Spaak Bresson.
According to the SPPA, the power generation project is scheduled to be commissioned by August 2021 under the condition that the tariff for the project for the first year would be ₹6.9 (~$0.093)/kWh. The tariff for the subsequent years would be determined as per the Commission&#8217;s Captive and Renewable Energy Generating Plants Regulations, 2019.
Commission&#8217;s Stance: 
Upon analysis, the Commission said that the project had not received consent to be established, and it seemed unlikely for it to be commissioned by August 2021. It cited a provision in the National Tariff Policy, 2016, which mandated distribution licensees to buy 100% of the power produced by waste-to-energy projects in the state. It subsequently allowed for the SCOD of the project to be extended.
However, it said that even though the parties have agreed to a tariff of ₹6.9 (~$0.093)/kWh, the tariff for the supply of power to UPPCL can only be determined once the project is commissioned. It rejected the petitioner&#8217;s request for approving the tariff, given that TTZ and other clearances were not made available. It directed both parties to get the clearances and approach the commission for SPPA approval at least one month before the project is commissioned.
According to Mercom India&#8217;s <a href="https://mercomindia.com/product/q3-2020-india-solar-market-update/" target="_blank" rel="noopener noreferrer">Q3 2020 India Solar Market Update</a>, about 8% of Uttar Pradesh&#8217;s power is generated from Biomass and Bagasse-based sources.
In June 2020, the UPERC had <a href="https://mercomindia.com/municipal-solid-wast-based-project/" target="_blank" rel="noopener noreferrer">directed</a> the UPPCL and Ecogreen Energy Lucknow to come up with a firm agreement for the amended power purchase agreement for a 13.5 MW municipal solid waste-based power project.
In 2019, the Commission had <a href="https://mercomindia.com/uttar-pradesh-ppa-municipal-solid-waste/" target="_blank" rel="noopener noreferrer">approved</a> the power purchase agreement signed between UPPCL and Accord Hydroair (Pikhuwa) Private Limited. The PPA was signed between UPPCL and Accord Hydroair in April 2018 for the purchase of power produced from MSW-based 9 MW of projects at Pipalheda village and 5.5 MW of project at Phikuwa village.

UPERC Allows Time Extension for Completing a Municipal Solid Waste Power Project

The <a href="http://uperc.org/Default2.aspx" target="_blank" rel="noopener noreferrer">Uttar Pradesh Electricity Regulatory Commission</a> (UPERC) has directed <a href="https://upenergy.in/uppcl" target="_blank" rel="noopener noreferrer">UP Power Corporation Ltd</a> (UPPCL) and Ecogreen Energy Lucknow Pvt Ltd to come up with a firm agreement for the amended power purchase agreement (PPA) for a 13.5 MW municipal solid waste (MSW)-based power project.
The Commission has also adjourned the date of hearing to July 21, 2020, owing to the coronavirus (COVID-19) outbreak.
Background
The UPPCL and Ecogreen Energy Lucknow Pvt Ltd had signed a power purchase agreement in September 2017 for 13.5 MW of MSW-based power. The project was scheduled to be commissioned by March 2019. The Commission approved the PPA for the project in December 2017.
Ecogreen Energy had sought the extension of the commercial operationalization date (COD) from UPPCL until December 2020. The company pointed out that the delay in commissioning was due to the delay in the issuance of a concessional customs duty certificate. Moreover, the site was dumped with waste before the project development began.
The UPPCL had given an extension to the COD of the project up to December 2020 based on six conditions which were subject to the Commission’s approval.
One of the main conditions was that the extension for the commissioning of the project from March 2019 to December 2020 would be on a mutually agreed tariff of ₹7.19 (~$0.10)/kWh for the financial year (FY) 2020-21. The tariff for the subsequent years would be as per the terms and conditions mentioned in the UPERC (Captive and Renewable Energy Generating Projects) Regulations 2019.
The other five conditions were:
<ul>
<li>Neither UPPCL nor Uttar Pradesh Power Transmission Corporation will bear any financial liability for the extension</li>
<li>There will be no further extension of the commissioning date under any circumstances, and UPPCL will have the liberty to terminate the PPA if it finds the progress unsatisfactory</li>
<li>The generating project needs to submit a monthly progress report during its construction</li>
<li>Ecogreeen Energy will ensure the installation of availability based tariff (ABT) meters and submission of declared capacity regularly through Uttar Pradesh State Load Despatch Centre (UPSLDC) website, and</li>
<li>All other terms and conditions of the PPA will remain applicable.</li>
</ul>
The amended PPA was signed in October 2019.
Then in March 2020, the Commission directed the UPPCL to file a comparative statement on the petition within a week, showing a financial impact on UPPCL due to a change in COD.
After the order from the Commission, the UPPCL submitted an affidavit stating that the net present value (NPV) with the revised COD was lower with respect to the original COD.
The NPV for the original COD was ₹482 million ($6.4 million), while the NPV for revised COD stood at ₹467.3 million ($6.2 million).
Ecogreen Energy argued that the COD timeline that was agreed in the amended PPA was before the pandemic, and under the current circumstances, COD timelines may not be adhered to.
The UPPCL submitted that COVID-19 is a force majeure condition, and “PPA has the provision of its treatment.”
Soon after the outbreak of the virus in the country,  the <a href="https://finmin.nic.in/" target="_blank" rel="noopener noreferrer">Ministry of Finance</a> (Department of Expenditure Procurement Policy Division) had <a href="https://mercomindia.com/coronavirus-covered-under-force-majeure-clause-ministry-of-finance/" target="_blank" rel="noopener noreferrer">issued a clarification</a> that coronavirus will be covered in the force majeure clause and should be considered as a case of natural calamity. Further, the ministry has stated that this clause can be invoked wherever appropriate.
The Commission observed that the terms of the amended PPA are yet to be finalized. If they are approved in their present form, it may lead to unnecessary litigation between the parties. Citing this, the two entities were asked to work out a firm agreement and present it before the Commission.
Earlier, the Ministry of New and Renewable Energy (MNRE) <a href="https://mercomindia.com/mnre-municipal-solid-waste-to-energy-program-guidelines/" target="_blank" rel="noopener noreferrer">revised the guidelines</a> for its waste to energy program. A new addition to the guidelines was the inclusion of municipal solid waste-based projects based on the clarification by the Department of Expenditure.
In March 2020, Mercom reported that owing to the impact of the COVID-19 outbreak on the global economy, the Ministry of New and Renewable Energy <a href="https://mercomindia.com/renewable-supply-disruption-coronavirus-force-majeure/" target="_blank" rel="noopener noreferrer">announced</a> that the time extension in scheduled commissioning of renewable projects due to the disruption of supply chains would be treated as a force majeure event.
Image credit: Dea at Wikimedia Commons, CC BY-SA (<a href="https://upload.wikimedia.org/wikipedia/commons/1/19/Dublin_Waste-to-Energy_Facility.jpg" target="_blank" rel="noopener noreferrer">4.0</a>)

Municipal Solid Waste-Based Project Stranded Due to COVID-19 Disruption

The Uttar Pradesh Electricity Regulatory Commission (<a href="http://www.uperc.org/Default2.aspx" target="_blank" rel="noopener noreferrer">UPERC</a>) has given its approval to the power purchase agreement (PPA) signed between Uttar Pradesh Power Corporation Limited (UPPCL) and Accord Hydroair (Pikhuwa) Private Limited.
The PPA was signed between UPPCL and Accord Hydroair in April 2018, for the purchase of power produced from municipal solid waste (MSW) based projects at Pipalheda village (9 MW) and Phikuwa village (5.5 MW) of the state.
Though the commission had already determined the tariff rate of ₹7.50 ($0.11)/kWh for projects commissioned in FY 2018-2019, the UPERC noted it was not followed by both the parties. Since the PPA was inked and both the developer and UPPCL had agreed for a tariff of ₹7.19 ($0.103)/kWh for FY 2019-2020, it has been approved by the commission.
The commission further stated that for the determination of tariff in the future years, it must be done as per the new CRE Regulations 2014, for the control period 2019-2024.
The <a href="https://mercomindia.com/cerc-generic-tariff-renewable-2019-20/" target="_blank" rel="noopener noreferrer">CERC h</a>as set generic tariffs for the purchase of electricity from a host of renewable energy generation sources during FY 2019-20. The levelized generic tariff applies to small hydro projects, biomass with Rankine cycle projects, non-fossil fuel-based co-generation projects, biomass gasifiers, and biogas-based projects. For solar PV, solar thermal, wind (onshore and offshore), municipal solid waste (MSW)/refuse derived fuel (RDF) and other emerging renewable energy technologies, the determined tariff will be project specific, and not generic, the CERC had ordered.
Earlier, <a href="https://mercomindia.com/uttar-pradesh-rfs-bagasse-power-ceiling-tariff/" target="_blank" rel="noopener noreferrer">the UPERC</a> approved amendments to the bidding documents for the procurement of bagasse-based power from generators by the Uttar Pradesh Power Corporation Ltd.
In its latest ruling, the UPERC had instructed UPPCL to conduct a transparent, competitive bidding process for the procurement of power from co-generators who are producing power from mixed fuel using <a href="https://mercomindia.com/uttar-pradesh-bid-cogeneration-projects/" target="_blank" rel="noopener noreferrer">bagasse and spent wash.</a> The UPPCL had sought the UPERC’s permission to enter into a PPA with co-generators who are generating power from bagasse and spent wash based mixed fuel.

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