Bihar Proposes Phased Storage Obligation Under RPO

Bihar Electricity Regulatory Commission has proposed amendments to its RPO framework, introducing a phased energy storage obligation of 2.5 percent in FY27, rising to 4 percent by FY30 and revising RPO calculation methods for open access consumers, captive users and distribution licensees.

September 19, 2026. By Mrinmoy Dey

Bihar Electricity Regulatory Commission (BERC) has proposed amendments to its Renewable Purchase Obligation (RPO), compliance and Renewable Energy Certificate (REC) framework, introducing an energy storage obligation and revising the methodology for calculating RPO for open access consumers, captive users and distribution licensees in the state.

The draft BERC(Renewable Purchase Obligation, its compliance and REC Framework Implementation) (1st Amendment) Regulations, 2026 propose to introduce a progressively increasing storage component within the RPO framework, requiring 2.5 percent of total RPO in FY27, 3 percent in FY28, 3.5 percent in FY29 and 4 percent in FY30 to be met through solar/wind energy along with or through storage, on an energy basis. Energy stored from renewable sources will be counted towards the other applicable RPO head. BERC has proposed periodically reviewing the requirement based on pumped storage project capacity, emerging commercially viable storage technologies and BESS costs.

The proposed framework will allow obligated entities to meet RPO through direct consumption of renewable electricity or renewable electricity supplied through an energy storage system. Entities may alternatively opt for the buyout price specified by the Central Electricity Regulatory Commission (CERC). Amounts collected through the buyout mechanism will be credited to the Central Energy Conservation Fund, with 75 percent proposed to be transferred to State Energy Conservation Funds to support renewable energy and storage capacity development.

It further states that open access consumers classified as obligated entities will be required to meet their total RPO from any renewable energy source, with consumption measured at the point of grid drawal. For captive users, the obligation will cover electricity generated and self-consumed, excluding auxiliary consumption.

Electricity generated through waste heat recovery using fossil-based sources and other specified waste energy recovery processes will be excluded. The proposal also excludes 50 percent of electricity generated and self-consumed from fossil-fuel-based cogeneration plants and 50 percent of fossil-fuel-based electricity consumed in aluminium smelters.

For distribution licensees, BERC has proposed calculating RPO based on electricity supplied to consumers within their distribution periphery. Consumption by open access users from sources other than the distribution licensee and electricity generated and self-consumed by captive users will be excluded from this calculation.

BERC has also proposed revised reporting formats for distribution licensees, captive users and open access consumers to capture renewable electricity consumption, RPO targets, REC purchases, buyouts and compliance levels. The format for captive and open access consumers will additionally cover renewable electricity from banking and the electricity equivalent of green hydrogen and green ammonia.

Stakeholders can submit comments, suggestions and objections on the draft regulations until October 8, 2026.

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