Patna: In a major push towards clean energy transition and power reliability, the Union Ministry of New and Renewable Energy has approved Bihar’s first large-scale Battery Energy Storage System (BESS) project with a capacity of 500 megawatt-hours (MWh). The project will be developed under the Viability Gap Funding (VGF) Scheme and is being implemented by the Bihar State Power Generation Company Limited.
A total VGF support of Rs 135 crore has been sanctioned by the Centre, capped at Rs 27 lakh per MWh or 30 per cent of the project’s capital cost—whichever is lower. The initiative aims to bolster the state’s energy storage capacity and improve the integration of renewable sources into the power grid.
The storage system will comprise 125 megawatts of batteries capable of storing electricity for up to four hours, ensuring an energy backup of 500 MWh. Grid substations at 15 strategic locations across Bihar—spanning Muzaffarpur, Motihari, Bhagalpur, Fatuha, Sitamarhi, and Kishanganj—have been earmarked for battery installations ranging between 5 and 20 MW each.
While successful bidders have been finalised for six of these sites, the bidding process is ongoing for the remaining locations. According to officials, prominent companies from across India have been invited to participate in the project.
The BESS initiative is expected to enhance the reliability of power supply in Bihar, particularly during peak demand periods. It is also projected to facilitate better utilisation of renewable energy sources while reducing the cost of electricity through efficient load balancing.
Bihar’s Energy Minister, Bijendra Prasad Yadav, hailed the project as a “historic step” towards creating a flexible, sustainable and consumer-friendly power infrastructure. “Under the leadership of Chief Minister Nitish Kumar, Bihar is steadily progressing towards energy self-reliance. This battery storage project will be a milestone in our pursuit of technological innovation and environmental stewardship,” he said.
Officials described the project as a symbol of cooperative federalism and shared vision between the Centre and the state. It reflects a policy shift focused on ensuring energy security, grid resilience and sustainable growth.
