The Bihar Electricity Regulatory Commission (BERC) has invited comments from stakeholders and the public on proposed renewable energy tariffs for the financial year 2026–27, with biomass-based projects among the key focus areas.
The draft proposal, issued under Suo-Motu proceeding SMP 21/2026, outlines tariffs for various renewable energy sources, including biomass power plants, non-fossil fuel-based co-generation units, biomass gasifier projects, and municipal solid waste (MSW) or refuse-derived fuel (RDF)-based plants, Solarquarter reported.
The proposed tariffs fall within the ongoing control period from 2025–26 to 2027–28, with FY27 being the second year of implementation.
As per the draft, biomass, wind and solar projects are expected to have a useful life of 25 years, while small hydro projects may operate for 40 years. MSW and RDF-based projects are projected to have a lifespan of 20 years.
The Commission has proposed a single-part tariff structure that includes fixed cost elements such as return on equity, depreciation, loan interest and operation costs. For biomass and other fuel-based renewable projects, fuel costs will also be included in the tariff.
BERC has suggested a standard debt-to-equity ratio of 70:30 for such projects, with loan interest calculated at 10.716% and return on equity set at 14%, subject to applicable taxes.
In terms of capital costs, biomass projects are estimated to require investments ranging from ₹638 lakh to ₹744 lakh per MW, depending on fuel type and technology. MSW and RDF-based projects have been assigned the highest capital cost at ₹1,500 lakh per MW.
The Commission has asked stakeholders, developers and consumers to submit their views on the draft by May 22, 2026. A public hearing is scheduled for May 26 at BERC’s office in Patna.
The final tariffs, once approved, will apply to renewable energy projects commissioned up to March 31, 2027, and will remain in force until further orders are issued.
