BERC Proposes Phased Energy Storage Obligation Under Draft RPO Amendment Regulations, 2026

On September 17, 2026, the Bihar Electricity Regulatory Commission (BERC) issued Notice No. 11, formally initiating Suo-Motu Proceedings (Case No. SMP-40/2026) to introduce the draft BERC (Renewable Purchase Obligation, its compliance and REC Framework Implementation) (1st Amendment) Regulations, 2026. Issued from the Commission’s headquarters at Vidyut Bhawan-II in Patna, the draft regulation amends the state’s principal RPO regulations originally notified on July 28, 2025. The core objective of this statutory amendment is to integrate a phased Energy Storage Obligation (ESO) into Bihar’s clean energy framework and redefine calculation and compliance methodologies for distribution licensees, open-access consumers, and captive users across the state.

This regulatory move comes as Bihar faces substantial clean energy supply constraints. According to submissions by the Bihar State Power Holding Company Limited (BSPHCL) before the Commission, the state projects a renewable energy shortfall of approximately 5,645 million units (MU) in FY 2026–27, widening to 7,936 MU by FY 2029–30. The proposed amendment directly reinforces the Bihar Renewable Energy Policy 2025, which sets ambitious targets to commission 23.97 GW of renewable energy capacity and 6.1 GWh of energy storage systems (comprising 4,500 MWh of grid-scale batteries and 1,600 MWh of pumped storage) by 2030.

Phased Energy Storage Obligation (ESO) Trajectory

The draft regulations establish a mandatory, progressive Energy Storage Obligation trajectory calculated on an energy basis. Obligated entities must fulfill this trajectory through solar or wind energy combined with or routed through energy storage systems.

Technical Mechanics and Review Provisions

• RPO Cross-Counting: Energy Storage Obligations fulfilled using energy stored from renewable energy sources count directly toward fulfilling other applicable RPO category targets.
• Periodic Regulatory Review: BERC will periodically review the storage trajectory based on:
  • The commissioning and operationalization status of Pumped Storage Projects (PSP) capacity.
  • The commercial viability and technological maturity of emerging energy storage solutions.
  • Cost trajectories and price reductions associated with Battery Energy Storage Systems (BESS).

Exclusions and Calculation Methodologies by Obligated Entity

The proposed draft provides explicit statutory formulas and exclusion rules for determining net RPO liabilities across different consumer and utility categories.

Nuclear Energy Exclusions

• Electricity consumed from nuclear power sources is fully excluded from RPO calculations across the board for all obligated entities.

Captive Power Plant (CPP) Exemptions

• General Scope: RPO applies to total self-consumed electricity, excluding auxiliary power consumption.
• Waste Heat Recovery (WHR): Power generated and self-consumed from fossil-fuel-based WHR processes is completely excluded from RPO targets, except for electricity generated from a Waste Heat Recovery Steam Generator in a captive Combined Cycle Gas-Based Generating Station.
• Industrial Process Waste: Energy generated and self-consumed via waste energy recovery, including by-product gases or residual industrial process energy, is fully excluded.
• Fossil Co-Generation Exemption: A 50% exemption applies to electricity generated and self-consumed from fossil-fuel-based co-generation plants.
• Aluminium Smelter Exemption: A 50% exemption applies to fossil-fuel-based electricity consumed in industrial aluminium smelters.

Open Access Consumers

• Obligated open-access consumers must fulfill their specified total RPO from any eligible renewable energy source.
• RPO liabilities are calculated based on electrical energy consumption measured at the exact point of drawal from the grid.

Distribution Licensees (DISCOMs)

• DISCOM obligations are calculated based strictly on electrical energy supplied to end consumers within the licensee’s distribution periphery.
• Peripheral calculations explicitly exclude power consumed by open-access users from non-DISCOM sources, as well as energy generated and self-consumed by captive power plant users.

Alternative Compliance and Buyout Mechanism

Under proposed Regulation 4.2(E), obligated entities may satisfy their statutory RPO targets through specified flexible compliance pathways:

1. Direct Renewable Energy Consumption: Sourcing and consuming renewable electricity directly or utilizing an integrated energy storage system.
2. Financial Buyout Settlement: Payment of the central buyout price specified by the Central Electricity Regulatory Commission (CERC).
3. Fund Allocation Rules:
   • Sums collected through the buyout mechanism will be credited to the Central Energy Conservation Fund under a distinct accounting head.
   • Exactly 75% of these deposited buyout funds will be transferred to State Energy Conservation Funds.
   • Transferred funds will be dedicated to financing non-fossil fuel capacity, utility-scale storage infrastructure, and clean energy development in Bihar under specific operational mechanisms designated by the State Government.

Revised Reporting Frameworks and Schedules

BERC has updated the schedules attached to the principal regulations to standardize compliance tracking and enhance data clarity:

Timeline and Stakeholder Action Items

The draft amendment is currently open for public review and industry consultation prior to final gazette notification.

• Submission Deadline for Objections: Written comments, suggestions, or legal objections must be submitted on or before October 8, 2026.
• Submission Address: Submissions must be formally addressed to the Secretary, Bihar Electricity Regulatory Commission, Vidyut Bhawan-II, J.L. Nehru Marg, Bailey Road, Patna-800021.
• Public Hearing Schedule: The Commission will conduct a formal public hearing on October 13, 2026, at 11:30 A.M. at its office in Patna to review oral submissions from stakeholders.
• Statutory Enforcement: The finalized regulations will apply statewide across Bihar and take full legal effect on the date of their official publication in the Bihar Official Gazette.

Official Regulatory and Government References

• Bihar Electricity Regulatory Commission (BERC)
  • Official Notice & Regulation: Notice No. 11 – Draft BERC (Renewable Purchase Obligation, its compliance and REC Framework Implementation) (1st Amendment) Regulations, 2026 (Suo-Motu Proceedings No. SMP-40/2026).
  • Issuing Authority: Bihar Electricity Regulatory Commission, Vidyut Bhawan-II, Patna, Bihar.
  • Notification Date: 17 September 2026.
  • Official Portal: Bihar Electricity Regulatory Commission (BERC)
• Ministry of Power (MoP), Government of India
  • Official Regulatory Order: Order F. No. 09/13/2021-RCM: Renewable Purchase Obligation (RPO) and Energy Storage Obligation Trajectory till 2029-30.
  • Issuing Authority: Ministry of Power, Government of India (Published via Renewable Energy Certificate Registry of India).
  • Order Date: 22 July 2022.
  • Official Portals: Ministry of Power (MoP) | Renewable Energy Certificate (REC) Registry of India
• NITI Aayog, Government of India
  • Official Policy & Technical Report: Renewable Energy Resource Adequacy Planning to meet RPO by the States in India.
  • Authors: Venugopal Mothkoor, Dr. Anjali Jain, and Rajnath Ram.
  • Issuing Authority: NITI Aayog, Government of India.
  • Publication Date: February 2024.
  • Official Portal: NITI Aayog, Government of India