To boost renewable energy in the state, Bihar is gearing up to construct its largest clean power project — a 2480 MW pumped storage power plant in Nawada district. This project will be a game changer in Bihar’s shift toward sustainable and non-conventional energy sources.

According to officials from the state electricity company, a pre-feasibility survey conducted by Sun Petrochemicals has confirmed the project’s viability. The report has identified three potential locations in Rajouli block: Hardiya (910 MW), Gosaitari (920 MW), and Adwaria (650 MW).

What Is Pumped Storage?

Pumped storage systems generate electricity by:

  • Using solar power during the day
  • Using stored water to produce power at night

The stored power can then be supplied as needed — for up to 8 hours at a stretch, ensuring round-the-clock energy availability.

Bihar Pump Storage Policy 2025

To support such large-scale investments, Bihar has drafted the Pump Storage Policy 2025, which:

  • Offers ₹1 crore incentives for projects between 25 MW and 200 MW
  • Supports projects under the Bihar Purchase Preferential Policy 2024
  • Includes provisions for startups and green energy investors

The draft policy has received inputs from various departments and will soon be placed before the state cabinet for approval.

What Happens Next?

  • Once the cabinet clears the policy and project plan:
    • Land allotment and environmental clearance will begin
    • Construction will take around 6–7 years
    • A Power Purchase Agreement (PPA) will be signed between the company and Bihar Government
    • Bihar Electricity Regulatory Commission (BERC) will approve the rates for buying power

The construction cost will be borne by the private agency, while the state will purchase the generated power.

Key Takeaways

  • A 2480 MW pumped storage plant will be built in Nawada
  • This will be Bihar’s largest non-conventional power project
  • Locations: Hardiya (910 MW), Gosaitari (920 MW), Adwaria (650 MW)
  • Draft policy offers incentives and includes startup participation
  • Project to be completed in 6–7 years, with PPA and regulatory oversight

FAQs

What is the significance of pumped storage in Bihar?

It allows solar energy to be stored and used even at night, making renewable energy more reliable.

Who is conducting the project survey?

Sun Petrochemicals was assigned the pre-feasibility survey and has submitted its findings.

How will the electricity be sold?

A Power Purchase Agreement (PPA) will be signed, and the electricity will be sold to the Bihar government at a regulated rate.

What policy supports this project?

The upcoming Bihar Pump Storage Policy 2025, which offers financial incentives and investor-friendly terms.

When will the project be completed?

Construction is expected to take 6 to 7 years after formal cabinet approval.