In a significant push to upgrade its power infrastructure, the Bihar State Power Generation Company Ltd (BSPGCL) entered into two major agreements with private firms on Tuesday. The memorandums of understanding (MoUs) pave the way for establishing large-scale pumped storage power projects in the state's Nawada district.
Massive Investment and Project Details
The twin agreements, signed in the presence of Chief Minister Nitish Kumar and Energy Minister Bijendra Prasad Yadav, envision a total investment of Rs 13,000 crore. This capital will fund two separate projects with a combined generation capacity of 2,120 megawatts (MW).
GreenCo Energies Pvt Ltd will develop a 1,200 MW pumped storage facility in Ekamba village, with an estimated cost of Rs 7,800 crore. Simultaneously, Sun Petrochemicals Pvt Ltd will undertake a 920 MW project in Gosaitari village, involving an investment of approximately Rs 5,200 crore.
Boosting Energy Security and Employment
An official from the state energy department highlighted the dual benefits of the initiatives. The construction phase alone is projected to generate around 8,000 jobs, providing a substantial boost to local employment.
More critically, the projects are designed to significantly enhance Bihar's ability to manage peak electricity demand and seamlessly integrate renewable energy sources like solar and wind into the grid. This capability is expected to help moderate long-term power procurement costs for the state.
Strategic Importance for Grid Stability
Chief Minister Nitish Kumar emphasized that these projects would strengthen Bihar's energy security and self-reliance. He pointed out that as the share of variable renewable energy increases, pumped storage technology becomes crucial for maintaining grid stability.
The projects fall under the Bihar Pump Storage Project Promotion Policy, 2025. The hilly terrain of Nawada district, with its natural elevation differences, offers an ideal geographical setting for such pumped storage schemes.
In terms of storage capacity, the GreenCo project will provide 7,308 megawatt-hours (MWh), and the Sun Petrochemicals project will offer 6,973 MWh. This combines to a substantial total energy storage capacity of 14,281 MWh.
A Step Towards National Climate Goals
Energy Minister Bijendra Prasad Yadav reiterated the state's commitment to providing clean and reliable power. He invited more investors by highlighting Bihar's conducive policy environment for industrial and infrastructure projects.
Yadav also connected the state's efforts to national objectives, stating that these projects are not just about meeting Bihar's growing electricity needs. They also represent a vital step towards achieving India's net-zero emission target by 2070.
These MoUs mark the first major investment secured under the 2025 policy, signaling a broader strategy by the Bihar government to attract large-scale capital expenditure into its power and renewable energy sectors.
