Bihar commissions first phase of Kajra solar plus storage project

Bihar has commissioned the first phase of the Kajra Solar Power Project in Lakhisarai district, marking a major step in expanding the state’s renewable energy and grid balancing capacity. The project combines utility-scale solar generation with large battery storage to supply power during peak demand hours.

The initial phase includes a 185 MW solar photovoltaic plant paired with a 254 MWh battery energy storage system (BESS). The facility has been developed at an estimated cost of Rs 1,810 crore and is designed to supply electricity for four to five hours daily during peak periods. Dedicated transmission lines and transformers have been commissioned to evacuate power from the site.

A second phase of the Kajra project is under construction with an approved investment of Rs 1,055 crore. This phase will add 116 MW of solar capacity and a 241 MWh BESS. Once both phases are completed by January 2027, the project will have a combined solar capacity of 301 MW supported by 495 MWh of battery storage. The state government has described the project as India’s largest battery energy storage installation, aimed at addressing renewable energy intermittency by shifting daytime solar generation to evening peak hours.

At the regulatory level, Bihar State Power Generation Company Limited (BSPGCL) has filed a tariff petition for the first phase before the state electricity regulator under Section 62 of the Electricity Act, 2003. The petition seeks approval of a levelised tariff for the 185 MW AC Kajra Solar PV project and associated 282 MWh BESS. BSPGCL has proposed an average tariff of Rs 3.93 per kWh over a project life of 25 years.

Larsen and Toubro Limited (L&T) has been appointed as the engineering, procurement, and construction contractor. About 76% of the capital cost is being financed through interest free loans from state and central government schemes. Commercial debt accounts for 4%, while equity contributes the remaining 20%. The Bihar government has also allocated 689 acres of land at a nominal lease of Re 1 per year, removing land acquisition costs from the project economics.

The Kajra Solar Power Project forms a key part of Bihar’s plan to provide reliable and clean electricity to households, businesses, and industry. By integrating large scale solar generation with battery storage, the state aims to improve grid stability, manage peak demand, and support its long term energy transition.

Image: Kajra Solar Project (Source: x@SEVA_BSPGCL)