The Bihar state cabinet has approved the Bihar Pumped Storage Promotion Policy, 2025, marking a significant milestone in the state’s renewable energy journey. This forward-looking policy aims to attract substantial clean energy investments and develop crucial long-term energy storage solutions, positioning Bihar as a frontrunner in India’s green energy transition. The initiative is pivotal for ensuring round-the-clock power supply, vital for fostering sustainable and equitable urban and rural development.
In a move designed to make Bihar one of the most attractive destinations for pumped storage investment in India, the new policy offers a suite of investor-friendly incentives. Developers will benefit from exemptions on water cess during the initial reservoir filling and receive significant concessions on intra-state power transmission charges. Furthermore, no contribution will be required towards the Local Area Development Fund, and the state will not demand any free royalty power from these projects. These comprehensive incentives are set to significantly lower the total cost of ownership for investors, thereby accelerating green energy deployment.
Under the new policy, the government is committed to facilitating the early identification and allocation of non-forest land for such projects. District administrations and the Bihar Industrial Area Development Authority (BIADA) have been instructed to expedite proposals for land allocation, streamlining the process for developers, fostering an efficient and transparent regulatory environment essential for large-scale infrastructure projects. Private sector participation will be actively encouraged through Public-Private Partnership (PPP) models.
Deputy Chief Minister Samrat Choudhary highlighted the critical role of energy storage in integrating excess renewable energy into the grid, aligning with the National Electricity Plan (NEP) 2022-32 of the Central Electricity Authority (CEA). He reiterated Bihar’s commitment to sustainable energy development, keeping in mind the nation’s resolution of achieving net-zero carbon emissions by 2070. This policy is crucial for balancing the intermittency of renewable resources like solar and wind, ensuring a stable and reliable power supply that is key to inclusive development for a growing economy like Bihar.
Energy Minister Bijendra Prasad Yadav affirmed that this policy will further position Bihar as a leader in India’s green energy transition, unlocking new avenues for investment, innovation, and employment. The focus on clean sources and long-term storage is fundamental to building zero net carbon, eco-friendly, and sustainable cities. By ensuring a consistent supply of green energy, the policy indirectly supports improved public health outcomes, fosters gender-neutral economic opportunities, and lays the groundwork for urban environments that are resilient and environmentally responsible. This transformative policy is expected to establish Bihar as a self-reliant and environmentally conscious state, setting a precedent for other regions.
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