Bihar Commissions First Phase of Landmark 301 MW/495 MWh Solar-Plus-BESS Project, Signaling Surge in India's Energy Storage Sector

In a milestone for Bihar's renewable energy landscape, the Bihar State Power Generation Company Limited (BSPGCL) has commissioned the first phase of its ambitious 301 MW/495 MWh solar-plus-battery energy storage system (BESS) project in Kajra, Lakhisarai district. This development not only marks the state's first large-scale integration of solar power with storage but also underscores India's accelerating progress toward a resilient, low-carbon grid amid growing renewable penetration.

The project, executed on a build-own-operate basis, is divided into two phases. The inaugural phase comprises a 185 MW grid-connected solar photovoltaic (PV) plant paired with a 254 MWh BESS, developed at an investment of approximately ₹18.1 billion (~$200.74 million). Commissioned ahead of schedule, this segment includes advanced lithium-ion battery technology to store excess solar energy and dispatch it during peak demand or low-generation periods, ensuring round-the-clock (RTC) power supply. The system is interconnected with a 132 kV transmission line, facilitating seamless integration into the state's grid and reducing curtailment losses. The second phase, slated for completion by January 2027, will add another 116 MW of solar capacity with 241 MWh of storage, bringing the total to 301 MW/495 MWh.

Launched in response to Bihar's rising energy demands and frequent power outages in rural areas, the Kajra project aims to enhance grid stability, support agricultural loads, and promote local economic growth through job creation in construction and operations. BSPGCL has emphasized the use of domestically sourced components, aligning with India's Approved List of Models and Manufacturers (ALMM) and Production Linked Incentive (PLI) schemes to boost indigenous manufacturing. The BESS component is designed for a minimum of four hours of discharge at rated capacity, with high round-trip efficiency (RTE) to minimize energy losses, making it a model for hybrid renewable projects in energy-deficit regions.

Deeper Analysis: Project Implications and India's Broader Progress in Solar-Plus-BESS Sector

This commissioning comes at a critical juncture for Bihar, a state historically reliant on imported power from coal-heavy sources. By integrating storage, the project addresses solar's intermittency, potentially reducing Bihar's dependence on fossil fuels by up to 20% in the Lakhisarai region and avoiding thousands of tons of CO2 emissions annually. Economically, it promises affordable RTC power at tariffs competitive with thermal alternatives, benefiting discoms (distribution companies) and end-users. However, challenges such as high upfront BESS costs (around ₹5-7 crore per MWh) and land acquisition hurdles in densely populated areas could influence scalability. BSPGCL's success here could inspire similar initiatives in other eastern states, where solar potential remains underutilized.

Zooming out, Bihar's achievement reflects India's explosive growth in the solar-plus-BESS sector, projected to be a breakout year in 2026. According to the India Energy Storage Alliance (IESA), the country's battery energy storage capacity is set to surge nearly tenfold to about 5 GWh in 2026, up from just 507 MWh in 2025, driven by policy incentives, declining battery prices, and ambitious tenders. As of 2025, only 0.7 GWh of BESS was operational nationwide, but an additional 2 GWh is expected online by December 2026, with major projects like Adani's 1,126 MW/3,530 MWh system in Gujarat marking key milestones.

This momentum is fueled by national initiatives, including the Ministry of New and Renewable Energy's (MNRE) targets for 500 GW of non-fossil capacity by 2030, with storage playing a pivotal role in achieving 24/7 renewable supply. Recent auctions, such as SECI's 1.2 GW solar-plus-3.6 GWh storage tender won by ENGIE, NLC India, and others, and WBSEDCL's 250 MW/1,000 MWh standalone BESS secured by PM Green, highlight competitive tariffs dipping below ₹3.50/kWh, making hybrids economically viable. The PLI scheme for advanced chemistry cells (ACC) has attracted investments exceeding $5 billion, aiming for 50 GWh domestic manufacturing by 2030, reducing import reliance from China.

Technologically, advancements in lithium-ion and emerging alternatives like flow batteries are lowering costs by 15-20% annually, enabling larger deployments. Environmentally, these projects support India's net-zero by 2070 goal, potentially displacing 10-15 GW of coal capacity in the coming decade. However, hurdles remain: supply chain vulnerabilities, regulatory delays in grid codes, and financing gaps for smaller developers. The market's valuation, at USD 1.59 billion in 2025, is forecasted to reach USD 20.37 billion by 2035, indicating robust investor confidence.

Bihar's Kajra project exemplifies this national shift, positioning the state as a frontrunner in eastern India's green transition. As 2026 unfolds, with multiple GW-scale commissions on the horizon, India's solar-plus-BESS sector is poised to transform from nascent to mainstream, fostering energy security, job creation, and sustainable development across the subcontinent.

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