Bihar Unveils INR 2.57 Lakh Crore Power Investment Plan, Targets 24 GW Renewables by 2030

Bihar has proposed investments of INR 2.57 lakh crore across its power sector, alongside a target of developing 24 GW of renewable energy capacity and 6 GWh of energy storage by FY2030.

The state government presented the investment roadmap at the Bharat RE Summit and Expo 2026 in New Delhi, identifying opportunities in solar power, battery storage, pumped storage and renewable energy manufacturing.

Addressing the Bihar State Plenary Session at Bharat Mandapam, State Energy Minister Shailesh Kumar, also known as Bulo Mandal, invited investors and industry representatives to participate in the state's clean energy expansion. He assured prospective investors of government support and highlighted Bihar's potential as an emerging destination for renewable energy investments.

Presenting the state's power sector plans, Energy Secretary and Bihar State Power Holding Company Ltd. (BSPHCL) Chairman and Managing Director Ajay Yadav said the proposed investment of approximately INR 2,57,316 crore would cover generation, transmission, distribution and infrastructure maintenance. An ongoing project pipeline worth around  INR 78,400 crore also forms part of the state's power infrastructure expansion plans.

The investment programme is backed by the Bihar Renewable Energy Policy 2025, Pumped Storage Policy 2025, Green Hydrogen Policy 2026 and Industrial Investment Promotion Package 2025. The policies are intended to facilitate private sector participation across different segments of the energy value chain.

Bihar plans to add around 5,000 MW of distributed renewable energy capacity over the next two to three years. Yadav said the proposed capacity would be developed through programmes such as PM-KUSUM, rooftop solar installations and solarisation of government buildings.

He identified distributed renewable energy, Battery Energy Storage Systems (BESS) and renewable energy equipment manufacturing as major investment opportunities over the next two to five years. Pumped storage and battery storage projects are also being considered to improve grid stability and support the integration of renewable energy into the state's electricity network.

The government is also considering a manufacturing policy incorporating a procurement preference mechanism to attract domestic manufacturers. The proposed framework is intended to provide greater market assurance to companies investing in manufacturing facilities in Bihar, including those producing solar panels, inverters and other renewable energy equipment.

Bihar's electricity demand is projected to increase to approximately 25,000 MW over the next decade, according to Yadav. The anticipated growth will require additional capacity across generation, transmission and distribution.

He said the state's peak electricity demand had risen from around 700 MW in 2005 to nearly 9,400 MW. He also highlighted improvements in the financial and operational performance of the state's distribution utilities.

According to the presentation, North Bihar and South Bihar distribution companies are profitable, with aggregate technical and commercial (AT&C) losses below the national average. The state has also installed nearly one crore smart meters and improved collection efficiency.

Yadav said the utilities had adopted cost-reflective tariffs and were making payments to power generators on time, generally within two weeks. These developments were highlighted as measures to strengthen the financial position of the distribution companies and improve the investment environment.

Kumar highlighted the role of renewable energy in meeting Bihar's future electricity requirements and strengthening energy self-reliance. He referred to the state's Chhath Mahaparva tradition of Sun worship while emphasising the importance of expanding solar energy deployment.

The minister cited the Pradhan Mantri Surya Ghar Muft Bijli Yojana and PM-KUSUM as important initiatives for increasing solar adoption. He also discussed floating solar projects and the installation of solar panels over canals as potential development avenues, particularly given the limited availability of large land parcels.

He urged companies to assess the state's renewable energy potential and participate in projects that could support its clean energy and infrastructure development plans.

Three memorandums of understanding (MoUs) were signed during the summit to strengthen research, technical collaboration and skill development in Bihar's power sector.

The Government of Bihar signed an agreement with the Centre for Mission on Energy Transition (CMET), MANIT Bhopal, for cooperation in renewable energy planning and power system management.

A tripartite agreement involving the Power Sector Skill Council (PSSC), BSPHCL and Bihar Power Training Management Society (BPTMS), Gaurichak, Patna, will focus on training and skill development for the power sector.

The third agreement, between Bihar State Power Generation Company Ltd. (BSPGCL) and The Energy and Resources Institute (TERI), covers technical cooperation and research in the power and renewable energy sectors.

The plenary session was attended by senior government officials and industry representatives, including Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy (MNRE); Anupam Kumar, Joint Secretary, MNRE; Ghanshyam Prasad of the Central Electricity Authority; Ajay Yadav, Energy Secretary and CMD of BSPHCL; Vishal Raj, Managing Director of BSPGCL; and Vineet Mittal, Founder and Chairman of Avaada Group.

Representatives from Adani Green Energy, Tata Power Trading, the Asian Development Bank and the German Biogas Association also participated in the panel discussion.

Discussions covered investment opportunities in renewable energy generation, energy storage, green hydrogen and manufacturing, as well as the infrastructure and technical capabilities needed to support the state's energy transition.

The investment roadmap places renewable energy expansion alongside improvements in power infrastructure, storage capacity and domestic manufacturing. Bihar is seeking private sector participation to meet its projected increase in electricity demand while advancing its target of 24 GW of renewable energy capacity by FY2030.