In a landmark decision, the Bihar Cabinet has approved the Pumped Storage Incentive Policy 2025 to strengthen the state’s commitment to clean and sustainable energy. This policy aims to enhance grid stability, encourage energy storage infrastructure, and push forward the adoption of renewable energy technologies.

Energy Minister Bijendra Prasad Yadav stated that under CM Nitish Kumar’s leadership, Bihar is building a strong base in the renewable energy sector. Pumped storage is especially useful in balancing the intermittency of solar and wind power, making it ideal for emerging economies like Bihar.

What Is Pumped Storage?

Pumped storage is a proven method to store renewable energy by pumping water to an upper reservoir during low demand and releasing it to generate power during high demand. This ensures:

  • Stable power supply
  • Efficient use of solar and wind energy
  • Long-term energy storage

A Policy Built for Investors

Energy Secretary Manoj Kumar Singh emphasized that the policy is designed to be:

  • Practical and scalable
  • Investor-friendly
  • Transparent and accountable

This framework is expected to attract new investment, create jobs, and drive innovation in Bihar’s energy ecosystem.

Vision for a Greener Bihar

Power Generation Company MD Mahendra Kumar called it a decisive move that will:

  • Accelerate clean power projects
  • Improve grid reliability
  • Make Bihar self-reliant and environmentally responsible

Other Key Cabinet Decisions

  • A Guarantee Redemption Fund will be set up to support public sector and cooperative loans backed by the state, following RBI’s advice
  • Approval of ₹99 crore for Danapur Water Supply Project under AMRUT 2.0, a centrally-sponsored urban renewal scheme

Did You Know?

  • Bihar is one of the first Indian states to introduce a dedicated policy for pumped storage
  • The policy will help Bihar better integrate renewable energy into its existing grid
  • Pumped storage is considered a clean alternative to battery-based storage for large-scale needs

FAQs

What is the Pumped Storage Policy 2025?

A government-approved policy to promote investment in hydro-based energy storage systems in Bihar.

Why is pumped storage important?

It balances energy supply and demand, especially for intermittent sources like solar and wind.

Who will benefit from this policy?

Renewable energy developers, the power grid, and ultimately the citizens of Bihar through more reliable electricity.

Is it investor-friendly?

Yes. The policy is built to encourage private sector participation with clarity and ease of execution.

What’s the next step?

Implementation of pumped storage projects in potential locations across the state with active investor involvement.