Bihar Seeks Centre’s Support for 2000 MWh Battery Energy Storage System
Patna: The Bihar government is ramping up its efforts to harness energy from unconventional sources, moving towards the deployment of a large-scale Battery Energy Storage System (BESS) to provide cheaper and uninterrupted electricity to consumers. The initiative aligns with Chief Minister Nitish Kumar’s vision to enhance power accessibility and affordability in the state.
Energy Minister Bijendra Prasad Yadav met Union Power Minister Manohar Lal Khattar, urging the central government’s support for the installation of a 2,000 MWh battery energy storage system. The project, once operational, will play a crucial role in stabilising Bihar’s power supply, particularly during peak demand hours.
24×7 power supply at a cheaper rate
On the new initiative taken by his department, Bihar Energy Minister Bijendra Prasad Yadav said that it could become possible only due to the Chief Minister’s farsighted thinking. He said people of the state would be ensured 24×7 power supply at a cheaper rate once the Chief Minister’s vision becomes a reality.
Giving a high priority to the development of battery energy storage system, Bihar government has given approval for installing a total 500 MWh on the land of the state’s grid sub centres. Bihar government has invited tenders for selecting an executing agency in the first phase.
In a pre-tender meeting, as many as 12 leading companies of the country had participated and expressed their intent of interest in executing the project.
Prominent among them are Tata Power, JSW Energy, Schneider Electric, Avaada Company and Pace Power. The project will be executed through Tariff Based Competitive Bidding process. The project has an added advantage as it can be completed in a short duration of time.
Bihar government not to bear financial burden
Bihar government will not have to bear additional financial burden in the execution of the project.
While the central government will provide 30 percent of total cost or Rs 27 lakh per MWh under Viability Gap Funding Scheme, the remaining 70 percent financial burden will be borne out by the storage system developer agency.
The first phase of the project installation will be completed at the vacant land of 16 identified grid sub centres so that the rate of stored power does not rise. A total amount of Rs 135 crore in five instalments will be paid to the developer agencies for the grid sub centres identified in the first phase. The project is scheduled to be completed in 18 months. Bihar government will sign an agreement with the developer agencies to operate and store the energy for the next at least 12 years. Under the battery energy storage system, the surplus power available during the daytime will be stored.
Balancing Power Supply and Demand
It is noteworthy that power is available at much higher rate during daytime and so power distribution companies have to pay much higher price for purchasing electricity. So, there will be twin advantages with the execution of the project – firstly power will be provided 24×7 and secondly it will be available at much cheaper rate. The execution of the project will ensure success in meeting renewable purchase obligations for purchasing new and renewable energy.
It may be noted that new projects are being executed in Bihar on a large scale for augmenting generation of solar power. So far, availability of 1920 MWs of renewable energy has been ensured in Bihar. With the development of battery energy storage systems, consumers will not only have access to uninterrupted power supply but power distribution companies will also be benefited financially. Bihar Energy Minister said that the work on developing two solar power projects with the installed capacity of 301 MWs. The state Energy Department is also developing the country`s largest battery energy storage system with the installed capacity of 495 MWh.
