The B

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(NO.PATNA 825)

Bih

NO. 01— In exerci

Section 181 (2) (zd) of the E

in this behalf, and after pre

hereby makes the following

1. Short title and c

(i)

These R

Commiss

Renewab

(ii)

These re

official G

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commenc

(iii) These Re

2. Definitions and

1) In these re

(a)

‘A

(b)

REGISTE

Bihar Gaze

EXTRA ORDINARY

LISHED BY AUTHORIT

19 ASHWIN 1944(S)

PATNA, TUESDAY, 11TH OCT

har Electricity Regulatory Commission

———

Notification

The 2nd August 2022

ise of powers conferred under Sections 61,66,8

Electricity Act, 2003 (36 of 2003), and all other

evious publication, the Bihar Electricity Regula

regulations, namely:

commencement.—

Regulations may be called the Bihar Elect

sion (Terms and Conditions for Tariff de

ble Energy Sources) Regulations, 2022.

gulations shall come into force on the date of

Gazette, and unless reviewed earlier or

sion, shall remain in force for a period of 3 year

cement.

egulations shall extend to the whole of the State o

Interpretation.—

egulations, unless the context otherwise require

Act’ means the Electricity Act, 2003 (36 of 2003

Auxiliary energy consumption' or 'AUX' in rela

ase of a generating station means the quantum of

y auxiliary equipment of the genre ting station

osses within the generating station, expressed as a

um of gross energy generated at the generator te

nits of the generating station;

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BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

(c)

‘Biomass’ means wastes produced during agricultural and forestry

operations (for example straws and stalks) or produced as

a by-product of processing operations of agricultural produce

(e.g., husks, shells, de- oiled cakes,); wood produced in dedicated

energy plantations or recovered from wild bushes or weeds; and the

wood waste produced in some industrial operations;

(d)

‘Biomass gasification’ means the process of incomplete combustion

of biomass resulting in production of combustible gases consisting

of a mixture of carbon monoxide(CO), hydrogen (H2) and traces of

methane (CH4);

(e)

‘Biogas’ means a gas produced when organic matter like crop

residues, sewage and manure breaks down (ferments) in an

oxygen-free environment;

(f)

‘ Capital cost’ means the capital cost of a project as referred to in

Regulations 13, 2533,40 & 46

(g)

'Commission' means the Bihar Electricity Regulatory Commission

referred to in sub-section (1) of section 82 of the Act;

(h)

‘Conduct of Business Regulations’ means the Bihar Electricity

Regulatory Commission (Conduct of Business) Regulations 2005, as

amended time to time.

(i)

‘Control Period’ means the period during which the norms for

determination of tariff specified in these regulations Shall remain

valid;

(j)

‘Floating solar project’ or ‘FPV’ means a solar PV power project

where the arrays of photovoltaic panels on a structure of the project

float on top of a body of water, such as artificial basin or lake,

with the help of floater, anchoring and mooring system;

(k)

‘Grid Code’ means the Central Electricity Regulatory Commission

(Indian Electricity Grid Code) Regulations, 2010 as amended from

time to time or any subsequent re-enactment thereof;

(l)

‘Gross calorific value’ or ‘GCV’ in relation to a fuel used in a

generating station means the heat produced in kCal by complete

combustion of one kilogram of solid fuel or one liter of liquid fuel

or one standard cubic meter of gaseous fuel, as the case may be;

(m)

‘Gross station heat rate’ or ‘Gross SHR’ means the heat energy

input in kCal required to generate one kWh of electrical energy

at generator terminals of a generating station;

(n)

‘Installed capacity' or 'IC’ means the summation of the name plate

capacities of all the units of the generating station or the capacity of

the generating station (reckoned at the generator terminals). In case

of Solar PV power projects and Floating solar. Project Installed

Capacity shall be sum of name plate capacities (Nominal AC power)

of the inverters of the project;

(o)

‘Inter-connection point’ shall mean interface point of renewable

energy generating facility with the transmission system or

distribution

system, where the energy is injected, as the case

maybe, and include:

in relation to wind power projects, solar PV power projects,

renewable hybrid energy projects and renewable energy with

storage Projects, line isolator on outgoing feeder on HV side of

the pooling sub-station; and

II. in relation to small hydro projects, biomass gasifier-based

power projects, non-fossil fuel-based co-generation projects

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

and solar thermal power projects, line isolator on outgoing

feeder on HV side of generator transformer.

(p)

‘ MNRE’ means the Ministry of New and Renewable Energy of the

Government of India;

(q)

‘Municipal solid waste’ or ‘MSW’ means and includes commercial

and residential wastes generated in a municipal or notified area in

either solid or semi-solid form and excludes industrial hazardous

wastes, but includes treated bio- medical wastes;

(r)

‘Non-fossil fuel-based co-generation project’ means a generating

station that uses the process in which more than one form of

energy (such as steam and electricity) are produced in a

sequential manner by use of biomass;

(s)

‘Operation and Maintenance expenses’ or ‘O&M expenses’ means

the expenditure incurred on operation and maintenance of the

project, or part thereof, and includes the expenditure on manpower,

repairs, spares, consumables, insurance and overheads;

(t)

‘Project’ means a generating station or an evacuation system up to

inter- connection point, as the case may be, and in case of a small

hydro project includes all components of generating facility such as

dam, intake water conductor System Power generating station and

generating units of the scheme, as apportioned to power generation;

(u)

‘Pumped storage hydro project’ means a hydro power project

which generates power through water stored as potential energy,

pumped from a lower elevation reservoir to a higher elevation

reservoir;

(v)

‘Refuse derived fuel’ or ‘RDF’ means segregated combustible

fraction of solid waste other than chlorinated plastics in the form

of pellets or fluff produced by drying, de-stoning, shredding,

dehydrating, and compacting combustible components of solid

waste that can be used as fuel;

(w)

‘Renewable energy’ or ‘RE’ means the electricity generated from

renewable energy sources;

(x)

‘Renewable energy project’ means a generating station that produces

electricity from renewable energy sources;

(y)

‘Renewable energy source’ means renewable source of energy such

as water, wind, sunlight, biomass, bagasse, municipal solid waste

and other such sources as approved by the MNRE;

(z)

‘Renewable energy with storage project’ means a combination

of renewable energy project with storage or a combination of

renewable hybrid energy project with storage at the same inter-

connection point;

(aa)

‘Renewable hybrid energy project’ means a renewable energy

project that produces electricity from a combination of renewable

energy sources, connected at the same inter-connection point;

(bb) ‘Small hydro project’ means a hydro power project with an installed

capacity up to and including 25 MW or as defined the Government

of India, from time to time at a single location;

(cc) ‘Solar PV power project’ means a project that uses sunlight for

direct conversion into electricity through photovoltaic technology

and is based on technologies such as crystalline silicon or thin

film or any other technology as approved by MNRE;

(dd)

‘Solar thermal power project’ means a project that uses sunlight

for direct conversion into electricity through concentrated solar

⁴

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

power technology and is based on line focus or point focus

principle;

(ee) ‘State Nodal Agency’ means the Bihar Renewable Energy

Development Agency (‘BREDA’) or such other entity as may be

designated by the Commission from time to time.

(ff) ‘Storage’ means energy storage system utilizing method sand

technologies like, solid state batteries, flow batteries, pumped

storage, compressed air, fuel cells, hydrogen storage or any other

technology, to store various forms of energy and to deliver the

stored energy in the form of electricity;

(gg) ‘Tariff period’ for renewable energy projects will be same as their

Useful Life and tariff period shall be considered from the date of

commercial operation of such power projects.

(hh) ‘Useful Life’ in relation to project, including dedicated evacuation

system, from the date of commercial operation of such project,

shall mean the following: -

S.No

RE Project

Useful Life

(Years)

Wind energy power project

Bio mass power project with Rankine cycle

technology

Non-fossil fuel cogeneration project

Small Hydro Plant

Municipal Solid Waste (MSW)/ and

Refuse Derived Fuel (RDF) based power

project

Solar PV/Solar thermal power project

Biomass Gasifier based power project

Biogas based power project

(ii) ‘ Year’ means a financial year.

(2) Save as aforesaid and unless repugnant to the context or if

the subject matter otherwise requires, words and expressions

used in these regulations and not defined, but defined in

the Act, or the Indian Electricity Grid Code or Bihar Electricity

Grid code or the Central Electricity Regulatory Commission

(Terms and conditions of Tariff) Regulations, 2019 shall have

the meanings assigned to them respectively in the Act or the

Indian Electricity Grid Code or Bihar Electricity Grid code or

the Central Electricity Regulatory Commission (Terms and

condition Tariff) Regulations, 2019.

Scope and extent of application.—These regulations shall apply to cases

where tariff for a grid connected generating station or a unit thereof commissioned during

the Control Period and based on renewable energy sources, is to be determined by the

Commission under Section 62 read with Section 86 of the Act:

Provided that in cases of Biomass power based on Rankine cycle, non- fossil

fuel-based cogeneration projects, Solar PV, Solar Thermal power projects,

Biomass gasifier, Biogas power project, Municipal solid waste and Refuse

derived fuel- based power projects, these regulations shall apply subject to the

fulfillment of eligibility criteria specified in Regulation 4 of these Regulations.

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Eligibility Criteria.—

(a) Wind power project –The project that uses new wind turbine generators and

is located at sites, on-shore or off-shore, approved by State Nodal Agency

or Appropriate Government.

(b) Small hydro project – The project that uses new plant and machinery and is

located at sites approved by State Nodal Agency or Appropriate

Government.

new plant and machinery, is based on Rankine cycle technology, and does

not use any fossil fuel.

d) Non-fossil fuel based co-generation project – The project that uses new plant

and machinery, and is based on topping cycle mode of co-generation.

Topping cycle mode of co- generation – Any facility autosensing-fossil fuel

input for the power generation and also utilizes the thermal energy

generated for useful heat applications in other industrial activities

simultaneously:

Provided that for the co-generation facility to qualify under topping cycle

mode, the sum of useful power output and one half the useful thermal output

be greater than 45% of the facility’s energy consumption, during crushing

season. Explanation- For the purposes of this clause.

(a)

‘Useful power output’ is the gross electrical output from the

generator. There will be an auxiliary consumption in the cogeneration

plant itself (e.g. the boiler feed pump and the FD/ID fans). In order to

compute the net power output, it would be necessary to subtract the

auxiliary consumption from the gross output. For simplicity of

calculation, the useful power output is defined as the gross electricity

(kWh) output from the generator.

(b) ‘Useful Thermal Output’ is the useful heat (steam) that is provided to

the process by the cogeneration facility.

(c)

‘Energy Consumption’ of the facility is the useful energy input that is

supplied by the fuel (normally bagasse or other such biomass).

(d) ‘Topping Cycle means a co-generation process in which thermal

energy produces electricity followed by useful heat application.

(e) Solar Power project, floating solar project and solar thermal

power project – The project is based on technologies approved by

MNRE.

Provided that floating solar project installed with existing renewable

energy project other than ground mount-

Solar PV project shall be treated as renewable hybrid energy project.

(f) Renewable hybrid energy project– The rated capacity of generation

from one renewable energy source is at least 25% of the rated

capacity of generation from other renewable energy source(s), which

operate at the same point of interconnection.

Provided that energy is injected into grid at the same interconnection

point and metering is done at such common interconnection point

accordingly.

(g) Biomass gasifier based power project – The project uses new plant

and machinery, and has a grid connected system that uses 100%

producer gas engine, coupled with gasifier technologies approved

by MNRE.

(h) Biogas based power project – The project uses new plant and

machinery and has a grid connected system that uses 100% biogas

fired engine, coupled with biogas technology for Co- digesting

⁶

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

agriculture residues, manure and other bio- waste as approved by

MNRE.

(i) Municipal solid waste based power projects – The project uses

new plant and machinery based on Rankine cycle technology, and

uses municipal solid waste as fuel.

(j) Refuse derived fuel based power projects – The project uses new

plant and machinery based on Rankine cycle technology, and uses

refuse derived fuel as fuel.

Chapter 1:

General Principles

Control Period.—The Control Period or Review Period under these Regulations

shall be of three (3) years, of which the first year shall be the financial year 2022-23.

Provided that the tariff determined as per these Regulations for the RE projects

commissioned during the Control Period, shall continue to be applicable for the

entire duration of the Tariff Period as specified in Regulation 6 below.

Provided further that the revision in Regulations for next Control

Period shall be undertaken six months prior to the end of the first Control

Period and in case Regulations for the next Control Period are not notified

until commencement of next Control Period, the tariff norms as per these

Regulations shall continue to remain applicable until notification of the revised

Regulations subject to adjustments as per revised Regulations.

Tariff Period.—

The Tariff Period for Renewable Energy power projects will be same as

their Useful Life as defined in Regulation 2 (hh) of these Regulations.

Tariff period under these Regulations shall be considered from the date of

commercial operation of the renewable energy generating stations.

Tariff determined as per these Regulations shall be applicable for

Renewable Energy power projects, for the duration of the Tariff Period as

stipulated under Clause (a) and (b).

Project Specific tariff.—

(a)

The tariff shall invariably be determined through a transparent process

of competitive bidding in accordance with the Guidelines issued by the

Central Government under Section 63 of the Act, and the Commission

shall adopt such tariff in accordance with the Guidelines issued by the

Central Government under Section 63 of the Act.

Provided that the tariff for Solar PV Power Projects below threshold

limit of eligibility for participating in Competitive Bidding shall be

considered equal to the following cases, in order of priority:

(i)

Latest Tariff discovered through Competitive Bidding by the

concerned Distribution Licensee/ State Nodal Agency for

similar project to be established in the State of Bihar and

adopted by the Commission.

(ii)

The Tariff discovered through Competitive Bidding for similar

project by Other Distribution Licensee(s) in the State, if any

and to be established in the State of Bihar & adopted by the

Commission;

(iii)

Latest Tariff discovered through Competitive Bidding for

similar project in the neighboring State of Bihar and adopted

by the appropriate Commission.

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

(b)

Further, the Project Specific Tariff, on case to case basis, shall be

determined by the Commission for the following types of projects:

(i)

Biogas based projects;

(ii) Solar Thermal Power Projects;

(iii) Small Hydro Projects

(iv) Other hybrid projects include renewable–renewable or renewable–

conventional sources, for which renewable technology is approved

by MNRE;

(v) Any other new renewable energy technologies approved by

MNRE.

(c)

Determination of Project specific tariff for generation of electricity from

such renewable energy sources shall be in accordance with such terms and

conditions as stipulated under relevant Regulations/ Orders of

BERC/CERC.

Provided that the financial norms as specified under these Regulations,

except for capital cost, shall be ceiling norms while determining the project

specific tariff.

Petition and proceedings for determination of tariff.—

(1) The generic tariff shall be determined by the Commission on annual basis in

accordance with these Regulations for the following types of renewable

energy projects, for which norms have been specified under the

Regulations:

a) Biomass power project based on Rankine cycle technology;

b) Non-fossil fuel based cogeneration projects.

c) Biomass gasifier power project.

d) MSW/RDF project based on Rankine cycle.

Provided that the generic tariff determined for the year, in which an

RE project is commissioned, shall be applicable for such RE Project

of same type and shall remain valid for the tariff period.

(2) A petition for determination of project specific tariff shall be

accompanied by such fee as may be determined by Regulations and shall

be accompanied by

Information in forms 1.1, 1.2, 2.1 and 2.2 as the case may be, and

as appended in the regulations;

Detailed project report outlining technical and operational details,

site specific aspects, premise for capital cost and financing plan

etc.

A statement of all applicable terms and conditions and expected

expenditure for the period for which tariff is to be determined.

A statement containing full details of calculation of any subsidy

and incentive received, due or assumed to be due from the Central

Government and/or State Government. This statement shall also

include the proposed tariff calculated without consideration of the

subsidy and incentive.

Any other information that the Commission requires the petitioner

to submit.

(3) The proceedings for determination of tariff shall be in accordance with the

BERC (Conduct of Business) Regulations, 2005.

9. Tariff Structure.—

and The tariff for renewable energy sources shall consist of the following

components:

(a) Return on equity;

(b) Interest on loan;

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BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

(c)

Depreciation;

(d) Interest on working capital;

(e) Operation and Maintenance expenses;

Provided that for renewable energy projects having fuel cost component,

like biomass power projects with Rankine cycle technology, biomass

gasifier based power projects, biogas based power projects, non-fossil

fuel based co-generation projects and refuse derived fuel based power

projects, single part tariff with two components, fixed cost component

and fuel cost component, shall be determined.

10.

Tariff Design.—

(1)

The generic tariff shall be determined, on levelized basis, considering the

year of commissioning of the project, for the tariff period of the project:

Provided that for renewable energy projects having single part

tariff with two components, fixed cost component shall be determined on

levelized basis considering the year of commissioning of the project

while fuel cost component shall be determined on year of operation

basis in the Tariff Order to be issued by the Commission.

(2)

For the purpose of levelized tariff computation, discount factor

equivalent to post-tax weighted average cost of capital shall be

considered.

(3)

The above principles shall also apply for project specific tariff.

11.

Treatment for Over-Generation.—In case a renewable energy project, in a

given year, generates energy in excess of the capacity utilization factor or plant load factor,

as the case may be, specified under these Regulations, the renewable energy project may sell

such excess energy to any entity, provided that the first right of refusal for such excess

energy shall vest with the concerned beneficiary. In case the concerned beneficiary purchases

the excess energy, the tariff for such excess energy shall be 75 percent of the tariff applicable

for that year.

12.

Dispatch principles for electricity generated from Renewable Energy Sources:

(1) All renewable energy power plants except for biomass power plants with

installed capacity of 10 MW and above, and non- fossil fuel based

cogeneration plants shall be treated as ‘MUST RUN’ power plants and

shall not be subjected to ‘merit order dispatch’ principles.

(2) The biomass power generating station with an installed capacity of 10 MW

and above and non-fossil fuel based co- generation projects shall be

subjected to scheduling and dispatch code as specified under Bihar

Electricity Grid Code (BEGC) and BERC (Deviation Settlement

Mechanism and Related Matters) Regulations including amendments

thereto.

(3) Scheduling of wind and solar energy shall be governed as per the aforesaid

provisions of Bihar Electricity Grid Code (BEGC) and BERC (Deviation

Settlement Mechanism and Related Matters) Regulations including

amendments thereto.

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Chapter 2:

Financial Principles

13. Capital Cost.—Norms for capital cost, as specified in relevant chapters of these

regulations, shall be inclusive of land cost, pre-development expenses, all capital work

including plant & machinery, civil work, erection, commissioning, financing cost, interest

during construction, and evacuation infrastructure up to inter- connection point.

Provided that for project specific tariff determination, the generating company

shall submit the break-up of capital cost items along with its petition in the

manner specified under Regulation 8.

14. Debt Equity Ratio.—

a. For determination of generic tariff and project specific tariff, the debt

equity ratio shall be considered as 70:30.

Provided that, for project specific tariff, where the equity actually

deployed is more than 30% of the capital cost, equity in excess of 30%

shall be treated as normative loan;

Provided further that for project specific tariff where equity actually

deployed is less than 30% of the capital cost, the actual equity shall be

considered for determination of tariff;

Provided also that the equity invested in foreign currency shall be

designated in Indian rupees on the date of each investment;

Provided also that debt equity ratio shall be considered after deducting

the amount of Grant or capital subsidy received for the project for

arriving at the amount of debt and equity.

Explanation- The premium, if any, raised by the generating company,

while issuing share capital and investment of internal resources created out

of its free reserve, for the funding of the project, shall be reckoned as paid

up capital for the purpose of computing return on equity, only if such

premium amount and internal resources are actually utilized for meeting

the capital expenditure of the renewable energy project.

b. The project developer shall submit the resolution of the Board of the

company or approval of the competent authority in other cases regarding

infusion of funds from internal resources in support of the utilization made

or proposed to be made to meet the capital expenditure of the renewable

energy project.

15. Loan Tenure and Interest on Loan.—

(1) Loan Tenure.—For determination of generic tariff and project specific

tariff, loan tenure of 10 years shall be considered.

(2) Interest on Loan.—

(a)

The loans arrived at in the manner indicated in Regulation 14 shall be

considered as gross normative loan for calculation for interest on

loan. For project specific tariff, the normative loan outstanding as on

1st of April of every year shall be worked out by deducting the

cumulative repayment up to 31^stMarch of previous year from the

gross normative loan.

(b)

For the purpose of computation of tariff, normative interest rate of two

hundred (200) basis points above the average State Bank of India

Marginal Cost of Funds based Lending Rate (MCLR) (one-year tenor)

prevalent during the last available six months shall be considered.

(c)

Notwithstanding any moratorium period availed by project developer,

the repayment of loan shall be considered from the first year of

commercial operation of the project and shall be equal to the

annual depreciation allowed.

¹⁰

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

16.

Depreciation.—

a. The value base for the purpose of depreciation shall be the capital

cost of the project admitted by the Commission. The salvage value of

the project shall be considered as 10% and depreciation shall be

allowed up to maximum of 90% of the capital cost of the project:

Provided that, no depreciation shall be allowed to the extent of grant

or capital subsidy received for the project.

b. Depreciation rate of 7.0 % per annum for first 10 years and

remaining depreciation to be spread during remaining useful life of

the RE projects considering the salvage value of the project as 10%

of project cost shall be considered.

c. Depreciation shall be computed from the first year of commercial

operation:

Provided that, for determination of project specific tariff, in case of

commercial operation of the project for part of the year, depreciation

shall be computed on pro-rata basis.

17. Return on Equity.—

a. The value base for equity shall be as determined under Regulation 14.

b. The normative Return on Equity shall be 14%. The normative Return on

Equity shall be grossed up by the latest available notified Minimum

Alternate Tax (MAT) rate for the first 20 years of the Tariff Period and by

the latest available notified Corporate Tax rate for the remaining Tariff

Period.

18. Interest on Working Capital.—

a. The Working Capital requirement in respect of solar PV power

projects, floating solar projects and solar thermal power projects shall

be computed in accordance with the following:

i. Operation and Maintenance expenses for one month;

ii. Receivables equivalent to 45 days of tariff for sale of electricity

calculated on normative Capacity Utilization Factor; and

iii. Maintenance spares equivalent to 15% of Operation and

Maintenance expenses.

The Working Capital requirement in respect of biomass power

projects with Rankine cycle technology, biogas power projects,

biomass gasifier based power projects, non- fossil fuel based co-

generation projects, municipal solid waste based power projects and

refuse derived fuel based power projects shall be computed in

accordance with the following:

Fuel costs for four months equivalent to normative Plant

Load Factor; however, in case of non-fossil fuel co-

generation, fuel cost for one month will be considered.

ii.

Operation and Maintenance expense for one month;

iii. Receivables equivalent to 45 days of tariff for sale of

electricity calculated on the plant load factor; and

iv. Maintenance spares equivalent to 15% of Operation and

Maintenance expenses.

c. In case of renewable hybrid energy projects, the Working Capital

requirement shall be sum of the Working Capital requirement determined

as per norms applicable for renewable energy sources, in proportion to

their rated capacity in the project.

d. Interest on Working Capital shall be at interest rate equivalent to the

normative interest rate of three hundred and fifty (350) basis points

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

above the average State Bank of India Marginal Cost of Funds based

Lending Rate (MCLR) (one-year tenor) prevalent during the last

available six months.

19. Calculation of capacity utilization factor and plant load factor.—The number

of hours in a year for calculation of capacity utilization factor and plant load factor,

as the case may be, shall be considered as 8760.

20. Operation and Maintenance Expenses.—

a. ‘Operation and Maintenance or O&M expenses’ shall comprise repair and

maintenance (R&M), establishment including employee expenses, and

administrative and general expenses.

b. Operation and Maintenance expenses shall be determined for the Tariff

Period of the project based on normative O&M expenses specified in these

regulations for the first year of the Control Period.

c. Normative O&M expenses allowed during first year of the Control Period

i.e. financial year 2022-23 under these regulations shall be escalated at the

rate of 3.84% per annum for the Tariff Period.

21. Rebate.—

For payment of bills of the generating company through revolving and

valid letter of credit on presentation or through National Electronic Fund

Transfer (NEFT) or Real Time Gross Settlement (RTGS) payment mode

within a period of 5 days of presentation of bills, a rebate of 1.5% on bill

amount shall be allowed.

Explanation: In case of computation of ’5 days’, the number

of days shall be counted consecutively without considering any

holiday. However, in case the last day or 5^thday is official holiday, the

5^thday for the purpose of rebate shall be construed as the immediate

succeeding working day.

Where payments are made on any day after 5 days within a period of one

month from date of presentation of bills by the generating company, a

rebate of 1% shall be allowed.

22. Late payment surcharge.—In case the payment of any bill for charges payable

under the regulations is delayed beyond a period of 45 days from the date of presentation of

bills, a late payment surcharge at the rate of 1.50% per month shall be levied by the generating

company.

23. Subsidy or incentive by the Central or the State Government.—

a. The Commission shall take into consideration any incentive, grant or

subsidy from the Central or State Government, including accelerated

depreciation benefit, availed by the project, while determining the tariff

under these regulations:

Provided that the following principles shall be considered for

ascertaining income tax benefit on account of accelerated depreciation, if

availed, for the purpose of tariff determination:

Assessment of benefit shall be based on normative capital cost,

accelerated depreciation rate and corporate income tax rate as per

relevant provisions of Income Tax Act, 1961 as amended from

time to time; and

ii)

Capitalization of renewable energy projects during second half of

the fiscal year.

iii) Per unit benefit shall be derived on levelized basis at discount

factor equivalent to weighted average cost of capital.

¹²

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

b. Any grant, subsidy or incentives availed by renewable energy project,

which is not considered at time of determination of tariff, shall be

deducted by the beneficiary in subsequent bills after receipt of such

grant, subsidy or incentive in suitable instalments or within such period

as may be stipulated by the Commission.

c. In case the Central or State Government or their agencies provide any

generation-based incentive, which is specifically over and above the

tariff, such incentive shall neither be taken into account while

determining the tariff nor be deducted by the beneficiary in subsequent

bills raised by the particular Renewable energy project.

24. Statutory Charges.—The renewable energy project developer shall recover from

the beneficiaries, the statutory charges imposed by the State an Central Government such as

water cess, electricity duty on auxiliary consumption subject to maximum of normative

auxiliary consumption.

Chapter 3:

Parameters for biomass power projects based on Rankine cycle technology

25. Capital Cost.—

a. The normative capital cost for first year of the Control Period i.e. financial

year 2022-23 shall be as under:

Biomass power projects based on

Rankine cycle technology

Capital Cost

(₹ lakhs/ MW)

Project [other than rice straw and juliflora

(plantation) based project] with water-cooled

condenser

559

Project [other than rice straw and Juliflora

(plantation) based project] with air-cooled

condenser

600

For rice straw and juliflora (plantation) based

project with water-cooled condenser

6 1 1

For rice straw and juliflora (plantation) based

project with air-cooled condenser

652

The capital cost for biomass power projects based on Rankine cycle

technology as specified for first year of the Control Period shall remain

valid for the entire duration of the Control Period unless reviewed

earlier by the Commission.

26. Plant Load Factor.—For the purpose of determination of tariff, the Plant Load

Factor Shall be considered as 80%.

27. Auxiliary Consumption.—The normative auxiliary consumption shall be as

follows: -

a) For projects using water-cooled condenser:10%

b) For projects using air-cooled condenser: 12%

28. Station Heat Rate.—The Station Heat Rate shall be:

a) For projects using travelling grate boilers: 4200 kCal/kWh

b) For projects using AFBC boilers: 4125 kCal/kWh

29. Operation and Maintenance expenses.—Normative O&M Expenses for the first

year of the Control Period i.e. financial year 2022-23 shall be ₹50.06 lakhs per MW and shall

be escalated at the rate at the rate specified in Regulation 20 of these Regulations for the

Tariff Period.

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

30. Use of Fossil Fuel.—The use of fossil fuels shall not be allowed:

Provided that for biomass power projects based on Rankine cycle

technology commissioned on or before 31.03.2017, use of fossil fuels to the extent

of 15% in terms of gross calorific value on annual basis, shall be allowed for the

Useful Life of the project from the date of commercial operation.

31. Gross Calorific Value.—The gross calorific value of biomass fuel, for the

purpose of determination of tariff, shall be at 3100 kCal/kg.

32. Fuel Cost.—Biomass fuel price during first year of the Control Period i.e.

financial year 2022-23 shall be ₹3921.60/ MT and shall be escalated at the rate of 5% per

annum to arrive at the base price for subsequent years of the Control Period, unless reviewed

earlier by Commission. For the purpose of determining levelized tariff, a normative escalation

factor of 5% per annum shall be applicable on biomass fuel price.

Chapter 4:

Parameters for non-fossil fuel based co-generation Projects

33. Capital Cost.—Normative capital cost for the non-fossil fuel based co-generation

projects shall be ₹492 lakhs/MW for the first year of Control Period i.e. financial year 2022-23

and will remain valid for the entire duration of the Control Period unless reviewed earlier by

the Commission.

34. Plant Load Factor.—The plant load factor shall be considered as 53% for the

computation of tariff.

35. Auxiliary Consumption.—The auxiliary consumption shall be considered as 8.5%

for the computation of tariff.

36. Station Heat Rate.—The Station Heat Rate of 3600 kCal/ kWh for power

generation component alone shall be considered for computation of tariff for non-fossil fuel

based co-generation projects.

37. Gross Calorific Value.—The gross calorific value for bagasse shall be considered

as 2250 kCal/kg. For the use of biomass fuels other than bagasse, gross calorific value as

specified under Regulation 31 shall be applicable.

38. Fuel Cost.—

a. The price of bagasse for first year of the Control Period i.e. financial year

2022-23 shall consider as ₹2507/ MT and shall be escalated at the rate of

5% per annum to arrive at the base price for subsequent years of the Control

Period, unless specifically reviewed by Commission. For the purpose of

determining levellized tariff, a normative escalation factor of 5% per annum

shall be applicable on bagasse prices.

b. For use of biomass other than bagasse in non-fossil fuel based

co generation projects, the biomass prices as specified under Regulation 32

shall be applicable.

39. Operation and Maintenance expenses.—Normative O&M expenses during the

first year of the Control Period, i.e. financial year 2022-23, shall be ₹26.44 lakhs per MW and

shall be escalated at the rate specified in Regulation 20 of these Regulations for Tariff Period.

¹⁴

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Chapter 5:

Parameters for biomass gasifier based power projects

40. Capital Cost.—Normative capital cost for biomass gasifier based power projects

shall be ₹593 lakhs/MW during first year of Control Period i.e. financial year 2022-23 and

will remain valid for the entire duration of the Control Period unless reviewed earlier by the

Commission.

41. Plant Load Factor.—Plant load factor for determination of tariff shall be

considered as 85%.

42. Auxiliary Consumption.—The auxiliary consumption shall be considered as 10%

for the determination of tariff.

43. Specific fuel consumption.—Normative specific fuel consumption shall be 1.25

kg per kWh.

44. Operation and Maintenance expenses.—Normative O&M expenses for the first

year of the Control period i.e. financial year 2022-23 shall be ₹66.11 lakhs per MW and shall

be escalated at the rate specified in Regulation 20 of these Regulations for Tariff Period.

45. Fuel Cost.—Biomass fuel price for biomass gasifier-based power projects shall be

the same as for biomass power project based on Rankine cycle technology as mentioned.

Chapter 10:

Parameters for municipal solid waste based power projects and refuse derived

fuel based power projects.

46. Capital Cost.— The capital cost for the power projects which use MSW based

on Rankine Cycle Technology shall be ₹1500 Lakhs/MW and for refuse derived fuel based

Power Plant shall be ₹900 Lakhs/MW

47. Plant Load Factor.—

Plant load factor for determining tariff for municipal solid waste based

power project sand refuse derived fuel-based power projects shall be:

Sl. No.

Plant load factor

MSW

RDF

During stabilization period

65%

During the remaining period of

the first year

(after stabilization period)

65%

2^ndyear onwards

75%

80%

The stabilization period shall not be more than 6 months from the date of

commercial operation of the project.

48. Auxiliary Consumption.—The auxiliary consumption for determination of tariff

shall be considered as 15%.

49. Station Heat Rate.—The Station Heat Rate for determination of tariff shall

be considered as 4200 kcal/kWh.

50. Operation and Maintenance Expenses.—Normative O&M expenses for the first

year of the Control period i.e. financial year 2022-23 shall be ₹67.58 lakhs per MW for

RDF and 112.63 lakhs per MW for MSW project sand shall be escalated at the rate specified

in Regulation 20 of these Regulations for Tariff Period

¹⁶

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Form-1.1:

Form Template for (Solar thermal, small hydro, other hybrid Projects)

S. N o

Assumption

Head

Sub-Head

Sub-Head(2)

Unit

Parameter

Power

Generation

Capacity

Installed Power Generation

Capacity Auxiliary Consumption

factor

CUF/ PLF

Commercial Operation Date

Useful Life

mm/yyyy

years

Project Cost

Capital Cost/

Normative Capital Cost

Capital Cost

Capital Subsidy, If any Net

Capital Cost

Rs.Lakh/ MW

Rs. Lakh

Financial

Assumptions

Debt Equity

Tariff Period Debt

Years

Equity

Total Debt Amount

Rs. Lakh

Debt

Component

Total Equity Amount

Loan Amount

Moratorium Period

Rs. Lakh

Years

Repayment Period

(include Moratorium)

Years

Interest Rate

Equity amount

Rs.Lakh

Equity

Component

Return on Equity for first 20

years

Return on Equity 21^thyear

onwards

Discount Rate

%p.a

Depreciation

Depreciation Rate for 1^st10 Yrs.

Depreciation Rate 11^thyears

onward Generation Based

Incentives. If any

Rs. Lakh p.a.

Incentives

Period for GBI

Years

Operation &

Maintenance

Normative O&M

expense

Rs. Lakh/MW

O&M expanses

per annum

Escalation

factor for O&M

expense

Rs. Lakh

Working

Capital

O&M expense

Receivables

Maintenance

Spares Interest

on Working

Capital

% of O&M expenses

Month Days

% p.a

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Form-1.2 a

Form Template for (solar thermal, other hybrid projects): Determination

of Tariff Component

Units Generation

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

yr-10

Yr-11 Yr-12

Yr-13

Installed Capacity

Net Generation

Tariff Components (Fixed

charge)

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12

Yr-13

O&M Expenses

Rs Lakh

Depreciation

Rs Lakh

Interest on term loan

Rs Lakh

Interest on working Capital

Rs Lakh

Return on Equity

Rs Lakh

Total Fixed Cost

Rs. Lakh

Per Unit Tariff components

(fixed)

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12

Yr-13

PU O&M Expenses

Rs/kWh

PU Depreciation

Rs/kWh

PU Interest on term loan

Rs/kWh

PU Interest on working Capital

Rs/kWh

PU Return on Equity

Rs/kWh

PU Tariff Components (Total)

Rs/kWh

Levellised Tariff

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12

Yr-13

Discount Factors

Discounted Tariff components

(total)

Rs/kWh

Levellised Tariff (total)

Rs/kWh

Units Generation

Unit

Yr-14 Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23

Yr-24 Yr-25

Installed Capacity

Net Generation

Tariff Components (Fixed charge)

Unit

Yr-14 Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23

Yr-24 Yr-25

O&M Expenses

Rs Lakh

Depreciation

Rs Lakh

Interest on term loan

Rs Lakh

Interest on working Capital

Rs Lakh

Return on Equity

Rs Lakh

Total Fixed Cost

Rs. Lakh

Per Unit Tariff components (fixed)

Unit

Yr-14

Yr-15

Yr-16

Yr-17

Yr-18

Yr-19

Yr-20

Yr-21

Yr-22

Yr-23

Yr-24

Yr-25

PU O&M Expenses

Rs/kWh

PU Depreciation

Rs/kWh

PU Interest on term loan

Rs/kWh

PU Interest on working Capital

Rs/kWh

PU Return on Equity

Rs/kWh

PU Tariff Components (Total)

Rs/kWh

Levellised Tariff

Unit

Yr-14 Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23

Yr-24 Yr-25

Discount Factors

Discounted Tariff components (total)

Rs/kWh

Levellised Tariff (total)

Rs/kWh

¹⁸

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Form-1.2 b

Form Template for (small hydro): Determination of Tariff Component

Units Generation

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

yr-10

Yr-11 Yr-12

Yr-13

Installed Capacity

Net Generation

Tariff Components (Fixed

charge)

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12 Yr-13

O&M Expenses

Rs Lakh

Depreciation

Rs Lakh

Interest on term loan

Rs Lakh

Interest on working Capital

Rs Lakh

Return on Equity

Rs Lakh

Total Fixed Cost

Lakh

Per Unit Tariff components

(fixed)

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12 Yr-13

PU O&M Expenses

Rs/kWh

PU Depreciation

Rs/kWh

PU Interest on term loan

Rs/kWh

PU Interest on working Capital

Rs/kWh

PU Return on Equity

Rs/kWh

PU Tariff Components (Total)

Rs/kWh

Levellised Tariff

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12 Yr-13

Discount Factors

Discounted Tariff components

(total)

Rs/kWh

Levellised Tariff (total)

Rs/kWh

Units Generation

Unit

Yr-14 Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23

Yr-24 Yr-25

Installed Capacity

Net Generation

Tariff Components (Fixed charge)

Unit

Yr-14

Yr-15

Yr-16

Yr-17

Yr-18

Yr-19

Yr-20

Yr-21

Yr-22

Yr-23

Yr-24

Yr-25

O&M Expenses

Rs Lakh

Depreciation

Rs Lakh

Interest on term loan

Rs Lakh

Interest on working Capital

Rs Lakh

Return on Equity

Rs Lakh

Total Fixed Cost

Rs Lakh

Per Unit Tariff components (fixed)

Unit

Yr-14 Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23

Yr-24 Yr-25

PU O&M Expenses

Rs/kWh

PU Depreciation

Rs/kWh

PU Interest on term loan

Rs/kWh

PU Interest on working Capital

Rs/kWh

PU Return on Equity

Rs/kWh

PU Tariff Components (Total)

Rs/kWh

Levellised Tariff

Unit

Yr-14

Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23 Yr-24 Yr-25

Discount Factors

Discounted Tariff components

(total)

Rs/kWh

Levellised Tariff (total)

Rs/kWh

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Units Generation

Unit

Yr-26

Yr-27

Yr-28

Yr-29

Yr-30

Yr-31

Yr-32

Yr-33

Yr-34

Yr-35

Yr-36

Yr-37

Yr-38

Yr-39

Yr-40

Installed Capacity

Net Generation

Tariff Components (Fixed

charge)

Unit

Yr-26

Yr-27

Yr-28

Yr-29

Yr-30

Yr-31

Yr-32

Yr-33

Yr-34

Yr-35

Yr-36

Yr-37

Yr-38

Yr-39

Yr-40

O&M Expenses

Rs Lakh

Depreciation

Rs Lakh

Interest on term loan

Rs Lakh

Interest on working Capital

Rs Lakh

Return on Equity

Rs Lakh

Total Fixed Cost

Rs. Lakh

Per Unit Tariff components

(fixed)

Unit

Yr-26

Yr-27

Yr-28

Yr-29

Yr-30 Yr-31 Yr-32 Yr-33 Yr-34

Yr-35

Yr-36

Yr-37 Yr-38

Yr-39

Yr-40

Levellised Tariff

Unit

Yr-26 Yr-27 Yr-28 Yr-29 Yr-30 Yr-31 Yr-32 Yr-33 Yr-34 Yr-35

Yr-36 Yr-37 Yr-38 Yr-39 Yr-40

PU Depreciation

Discount Factors

Rs/kWh

PDUiscInotuenrteesdt Tonartieffrcmomloapnonents

(total)

Rs/kWh

Levellised Tariff (total)

Rs/kWh

PU Return on Equity

Rs/kWh

PU Tariff Components (Total)

Rs/kWh

²⁰

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Form-2.1:

Form Template for (Biogas)

Assumption

Head

Sub-Head

Sub-Head(2)

Unit

Parameter

Power

Generation

Capacity

Installed Power Generation

Capacity Auxiliary Consumption

factor

CUF/ PLF (during stabilization upto

6 months)

CUF/PLF (during 1^styear

stabilization)

CUF/PLF (2^ndyear onwards)

Commercial Operation Date

mm/yyyy

Useful life

years

Project Cost

Capital Cost/

Normative Capital Cost

Rs.Lakh/ MW

Rs. Lakh

Capital Cost

Capital Subsidy, If any

Net Capital Cost

Financial

Assumptions

Debt Equity

Tariff Period

Debt

Years

Rs. Lakh

Years

Rs.Lakh

%p.a

Rs. Lakh

p.a. Years

Equity

Total Debt Amount

Debt

Component

Total Equity Amount

Loan Amount

Moratorium Period

Repayment Period

(include Moratorium)

Interest Rate

Equity amount

Equity

Component

Return on Equity for first 20 years

Return on Equity 21^th

year onwards

Discount Rate

Depreciation

Depreciation Rate for 1^st10 Yrs.

Depreciation Rate 11^thyears

onward

Generation Based Incentives. If any

Incentives

Period for GBI

Operation &

Maintenance

Normative O&M

expense

Rs.

Lakh/MW

O&M expanses

per annum

Escalation factor

for O&M

expense

Rs. Lakh

Working Capital

O&M expense

Receivables

Maintenance

Spares Interest

on Working

Capital

% of O&M expenses

Month

Days Rs.Lakh

%p.a

Fuel related

assumptions

Specific Fuel

consumption

During stabilization

Post stabilization

kg/Kwh

²²

BIHAR GAZETTE (EXTRA), 11TH OCTOBER 2022

Form-2.2

Form Template for (Biogas)

Determination of Tariff Component

Units Generation

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

yr-10

Yr-11 Yr-12

Yr-13

Installed Capacity

Net Generation

Tariff Components (Fixed charge)

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6 Yr-7 Yr-8

Yr-9 Yr-10 Yr-11 Yr-12

Yr-13

O&M Expenses

Rs Lakh

Depreciation

Rs Lakh

Interest on term loan

Rs Lakh

Interest on working Capital

Rs Lakh

Return on Equity

Rs Lakh

Total Fixed Cost

Rs. Lakh

Tariff Components (Variable charge)

Unit

Yr-1 Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12 Yr-13

fuel type-1

Rs Lakh

fuel type-2

Rs Lakh

Municipal Solid Waste

Rs Lakh

Sub-total (Fuel Costs)

Rs Lakh

Fuel cost allocable to power

Total Fuel Costs

Rs Lakh

Per Unit Tariff components

(fixed)

Unit

Yr-1

Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12 Yr-13

PU O&M Expenses

Rs/kWh

PU Depreciation

Rs/kWh

PU Interest on term loan

Rs/kWh

PU Interest on working Capital

Rs/kWh

PU Return on Equity

Rs/kWh

PU Tariff Components (Fixed)

Rs/kWh

PU Tariff Components

(Variable)

Rs/kWh

PU Tariff Components (Total)

Rs/kWh

Levellised Tariff

Unit

Yr-1 Yr-2

Yr-3

Yr-4

Yr-5

Yr-6

Yr-7

Yr-8

Yr-9

Yr-10

Yr-11 Yr-12

Yr-13

Discount Factors

Discounted Tariff components

(fixed)

Rs/kWh

Discounted Tariff components

(variable)

Rs/kWh

Discounted Tariff components

(total)

Rs/kWh

Levellised Tariff (fixed)

Rs/kWh

Levellised Tariff (variable)

Rs/kWh

Levellised Tariff (total)

Rs/kWh

Units Generation

Unit

Yr-14 Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23

Yr-24 Yr-25

Installed Capacity

Net Generation

Tariff Components (Fixed

charge)

Unit

Yr-14 Yr-15 Yr-16 Yr-17 Yr-18 Yr-19 Yr-20 Yr-21 Yr-22 Yr-23

Yr-24 Yr-25

O&M Expenses

Rs Lakh

Depreciation

Rs Lakh

Interest on term loan

Rs Lakh

Interest on working Capital

Rs Lakh

Return on Equity

Rs Lakh

Total Fixed Cost

Lakh