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Bihar Open Access Regulatory Policy
Open Access in Bihar is regulated by the Bihar Electricity Regulatory Commission (BERC). The Open Access framework operates under the BERC Green Energy Open Access Regulations, 2024, which serves as the official rulebook for open access in the state and outlines the step-by-step process for procuring solar power through open access. The Bihar Renewable Energy Policy 2025, notified in July 2025, provides the state government’s comprehensive renewable energy framework and introduces key incentives including waivers on transmission charges, wheeling charges, and electricity duty. The Central Green Energy Open Access Rules, 2022 are also applicable. Bihar Renewable Energy Development Agency (BREDA) functions as the nodal agency and single point of contact for all renewable energy approvals in the state, simplifying the process through a single window facilitation mechanism.
Open Access is permitted for consumers with a minimum contract demand or sanctioned load of 100 kW or above. It is applicable for Captive, Group Captive, and Third-Party transactions. Single window facilitation through BREDA ensures faster and more streamlined approvals compared to many other states.
Annual banking is allowed in Bihar, making it one of the more investor-friendly states for renewable energy procurement. Unused summer energy can be used to offset winter shortfall, making annual banking particularly beneficial for solar-heavy projects. Banking charges are applicable as per BERC order.
Open Access approval requires clearance from the respective distribution company, either North Bihar Power Distribution Company Limited (NBPDCL) or South Bihar Power Distribution Company Limited (SBPDCL) depending on location, along with BREDA as the nodal agency and the State Load Dispatch Centre (SLDC) as the grid operator. The process includes a technical feasibility check, grid capacity assessment, and agreement signing. BREDA’s single window support makes the approval process faster than many other states.
Bihar’s Renewable Energy Policy 2025 gives strong priority to renewable energy development, with the state targeting 23,970 MW of renewable energy capacity by 2030. Grid infrastructure is being upgraded under the central government’s Revamped Distribution Sector Scheme (RDSS), and the state’s flat terrain makes large-scale solar farm development straightforward and cost-effective.
Standby power from NBPDCL or SBPDCL is available for Open Access consumers at normal tariff plus 5%. Under the Bihar Renewable Energy Policy 2025, transmission charges, wheeling charges, and STU charges are fully waived, with the STU waiver applicable for 20 years for renewable energy plus storage projects. Electricity duty is fully waived for 15 years. Cross Subsidy Surcharge (CSS) is applicable except for captive consumers. Additional surcharge and SLDC charges are also applicable.
Grid connectivity requires approval from Bihar State Power Transmission Company Limited (BSPTCL), which owns and manages the state’s transmission infrastructure, along with clearance from the SLDC. The grid is being progressively upgraded under the RDSS scheme, with new wires, transformers, and equipment improving reliability across the state year on year.
Bihar’s Open Access market presents significant opportunities. The complete waiver of transmission charges, wheeling charges, and electricity duty results in one of the lowest renewable energy project costs in India. Annual banking allowance provides maximum flexibility for solar project planning. Key industrial targets include sugar mills, food processing units, and cement plants in the Patna-Muzaffarpur belt. BREDA’s single window mechanism further accelerates project approvals, and the flat terrain supports large-scale solar farm development at competitive costs.
However, the market also faces structural challenges. Grid reliability remains a concern in some areas of Bihar, requiring Open Access consumers to maintain adequate backup arrangements through battery storage or a reliable DISCOM standby connection. Bihar’s industrial base is smaller compared to southern and western states, limiting the scale of the Open Access market. The presence of two separate distribution companies, NBPDCL and SBPDCL, means that project workflows and coordination requirements differ for North and South Bihar respectively.
