Powering Bihar: Record Revenue, Lower Tariffs, and Big Renewable Push

Patna: The Bihar government has outlined ambitious plans for its power sector, with significant achievements in generation, transmission, and distribution under Chief Minister Nitish Kumar’s leadership. Presenting the Energy Department’s budget demand of Rs 13,484.35 crore for 2025-26 in the state assembly, Energy Minister Bijendra Prasad Yadav highlighted the state’s progress in improving electricity access and efficiency.

In 2023-24, Bihar’s power distribution companies collected record revenue of Rs 15,109 crore, registering a profit of Rs 1,274 crore. This surplus allowed a reduction of 15 paise per unit in consumer electricity rates. The government, Yadav said, remains committed to providing affordable electricity to residents.

To support consumers, the state allocated Rs 15,343 crore under the Chief Minister Vidyut Sahayata Yojana, benefiting all categories of consumers. Farmers, in particular, saw irrigation power tariffs drop to just 55 paise per unit—making it ten times cheaper than using diesel pumps. So far, 5.81 lakh farmers have received electricity connections under the Chief Minister Krishi Vidyut Sambandh Yojana, with a target to connect all remaining farmers by September 2026. Under the RDSS scheme, 2,274 agricultural feeders have been constructed, ensuring uninterrupted power supply for farming.

Bihar has also taken the lead in smart metering, with over 62 lakh smart pre-paid meters installed, allowing consumers greater control over their electricity usage. These initiatives have helped reduce the state’s aggregate technical and commercial (AT&C) losses from 59.24% in 2005 to 19.94% in 2025.

Expanding Thermal and Renewable Energy

The minister announced that Bihar’s total installed capacity of thermal power plants—including those at Barauni, Kanti, Barh, Nabinagar, and Kahalgaon—now stands at 8,850 MW. A new 660 MW unit at Barh Thermal Power Project will commence operations this year, while the 1,320 MW Buxar (Chausa) thermal power plant is set to be operational in 2025-26. Additionally, approval has been granted for a 2,400 MW thermal power project at Pirpainti, Bhagalpur—the largest private investment in the state’s energy sector.

On the renewable front, Bihar has installed 100 MW of rooftop solar power across 11,383 government buildings and 21 MW on 5,683 private buildings under the Jal-Jeevan-Hariyali Abhiyan. The state currently generates 178 MW from various solar projects, with floating solar plants operational in Darbhanga (1.6 MW), Supaul (525 kW), and Phulwaria Nawada (10 MW). A 2 MW canal-side solar project is under construction in Vikram, Patna.

Two large-scale battery-backed solar power projects, each of 301 MW, are under development in Kajra, Lakhisarai, with a combined battery storage capacity of 495 MW-hours—the largest such project in the country. Plans are also in place to install a 500 MW-hour battery energy storage system at 16 grid substations in Bihar in 2025-26.

Strengthening Transmission and Infrastructure

Bihar’s transmission sector has received an A+ rating from the Government of India. The government has completed tenders for 10 new grid substations announced by the chief minister during his Pragati Yatra. Additionally, three grid substations based on GIS technology have been commissioned, strengthening the state’s power supply network.

A scheme worth Rs 296.93 crore has been approved for the modernization of Patna’s power infrastructure, set to begin next year. Another Rs 422.90 crore scheme aims to provide electricity to 42,621 households across 219 villages in districts including West Champaran, Supaul, Kaimur, Rohtas, Jamui, and Purnia.

Looking ahead, Bihar plans to launch a 10 MW floating solar project at Durgawati Dam in Kaimur, a 20 MW solar project along canal banks, and a 20 MW raised structure solar project in pond and chaur areas.

Concluding his budget speech, Yadav said the state government remains committed to delivering reliable, affordable, and uninterrupted electricity, ensuring Bihar’s continued progress in the energy sector.