Surrounded by energy crises, Bihar eyes Rs 1.38 lakh crore solar investment

Surrounded by energy crises, Bihar eyes Rs 1.38 lakh crore solar investment The state collected over Rs 19, 000 crore from electricity users in 2025-26, but spent between ₹25, 000 crore and ₹35, 000 crore annually to purchase power from outside sources.

Key points

• Santosh Singh is a Senior Assistant Editor with The Indian Express since June 2008.
• This clean energy push stems from the stark financial reality of the state's energy sector.
• Energy department authorities, even so, insist the move is guided by the power sector's recent financial turnaround rather than just fiscal pressure.
• Beyond utility-scale plants, the state is additionally expanding decentralized solar infrastructure.

Under its Renewable Energy Policy 2025, Bihar intends to harness almost 24 GW of renewable energy and build 6 GWh of energy storage systems by 2030, driven predominantly by solar power. (Reuters/File).

Against the backdrop of massive power purchase costs, minimal revenue and energy demand peaking almost 17 times the generation capacity in summers- Bihar is betting on solar energy to meet its electricity needs with a target of 24 GW of renewable energy capacity and 6 GWh of energy storage systems by 2030.

This clean energy push stems from the stark financial reality of the state's energy sector. The state collected over Rs 19, 000 crore from electricity users in 2025-26, but spent between ₹25, 000 crore and ₹35, 000 crore annually to purchase power from outside sources. It is additionally burdened with Rs 3, 800 crore from offering 125 units of free power to 1.89 crore of its 2.2 crore consumers.

Energy department authorities, even so, insist the move is guided by the power sector's recent financial turnaround rather than just fiscal pressure. "The focus on clean power comes amid a sharp financial turnaround across the state's energy utilities, " a senior energy official informed The Indian Express.

"To keep pace with peak electricity demand. It is projected to grow to 11, 747 MW by 2030, the Bihar State Power Holding Firm Limited will invest ₹82, 679 crore directly to generating assets, including pumped storage power projects, nuclear feasibility studies in Banka and Siwan, and solar installations. Transmission infrastructure will receive Rs 24, 683 crore to build a 680-circuit-kilometer Green Energy Corridor, with the remaining funds earmarked for distribution, digital upgrades, and maintenance, " the official remarked.

In practice, a centerpiece of the state's green agenda – Rs 2, 866 crore Kajra Solar Power Plant in Lakhisarai, pairs a 301 MW solar facility with a 523 MWh Battery Energy Storage System (BESS). Beyond utility-scale plants, the state is additionally expanding decentralized solar infrastructure. Groundwork has begun on the 150 MW Aurangabad Solar Park. Rooftop solar is additionally scaling up under the Centre's Surya Sankalp scheme. It has installed 115 MW throughout 12, 000 administration buildings, with another 500 MW lately approved. Rural and residential programs add to this through 457 MW in PM-KUSUM feeder solarization projects and rooftop installations targeting 10 lakh consumers under PM Surya Ghar.

Meanwhile, the state now provides power to over 2.2 crore consumers, up from 17 lakh twenty years ago with per capita electricity consumption growing more than fivefold in the same period. © The Indian Express Pvt Ltd.

Santosh Singh is a Senior Assistant Editor with The Indian Express since June 2008. Expertise He covers Bihar with main focus on politics, society and governance. Investigative and explanatory stories are additionally his forte. Singh has 25 years of experience in print journalism covering Bihar, Delhi, Madhya Pradesh and Karnataka.

For now, surrounded by energy crises, Bihar eyes Rs 1.38 lakh crore solar investment remains the part of the story worth watching, and further updates are likely as more details are confirmed.