JSERC Approves SAIL-Bokaro’s 100 MW Solar Power Procurement from SECI

The Jharkhand State Electricity Regulatory Commission (JSERC) has approved Steel Authority of India Ltd. (SAIL-Bokaro)’s petition for the procurement of 100 MW of solar power from the Solar Energy Corporation of India (SECI).

The agreement, intended to fulfil SAIL-Bokaro’s Renewable Purchase Obligation (RPO), was submitted for approval under the JSERC (Terms and Conditions for Determination of Distribution Tariff) Regulations, 2020.

The petition was presented by representatives from both SAIL-Bokaro and SECI before the commission, which comprised Hon’ble Mahendra Prasad (Member, Law) and Hon’ble Atul Kumar (Member, Tech).

The petition sought approval for the Power Sale Agreement (PSA) between the two entities, ensuring a long-term commitment to renewable energy procurement in compliance with regulatory requirements.

SAIL-Bokaro, which holds the power distribution license for Bokaro Steel City, sources its electricity from captive generation by Bokaro Power Supply Company Ltd. (BPSCL) and from Damodar Valley Corporation (DVC). As a distribution licensee, SAIL-Bokaro is obligated to meet a portion of its energy consumption through renewable sources under the JSERC (Renewable Energy Purchase Obligation and its Compliance) Regulations, 2016, and its amendments.

Under the approved agreement, SECI will supply 100 MW of solar power from inter-state transmission system (ISTS)-connected solar projects developed by Solar Power Developers (SPDs). The total cost of this power has been set at INR 2.85/kWh, which includes the SPD rate of INR 2.50/kWh, SECI’s trading margin of INR 0.07/kWh, and an estimated INR 0.28/kWh to account for Basic Customs Duty (BCD) and Goods and Services Tax (GST), subject to adjustments based on actual costs. The tariff will remain constant for 25 years, unlike power from DVC, which is currently priced at INR 4.05/kVAh and is expected to rise over time.

Additionally, SAIL-Bokaro will benefit from a waiver of inter-state transmission charges, as per the Ministry of Power’s notification dated June 21, 2021. This exemption applies to all solar and wind power projects commissioned before June 30, 2025, and will be valid for 25 years, reducing overall costs for end consumers.

In its order, JSERC cited Sections 86(1)(b) and 86(1)(e) of the Electricity Act, 2003, emphasising its role in regulating electricity procurement by distribution licensees and promoting renewable energy adoption. The commission noted that the PSA aligns with state and national energy policies by ensuring compliance with RPO mandates.

Approving the petition, JSERC directed SAIL-Bokaro to procure solar power from SECI at the agreed tariff, with the condition that any further adjustments related to BCD and GST would be based on actual claims by the SPD. The commission concluded that the agreement supports the state's clean energy transition while securing cost-effective power for Bokaro Steel City.

With this approval, SAIL-Bokaro takes a significant step towards increasing its reliance on renewable energy, accelerating solar power adoption in industrial and commercial sectors.