Bihar unveils 2025 renewable energy policy

The Bihar Cabinet has approved the Bihar Renewable Energy Policy 2025, replacing its 2017 version. The new policy sets a five-year target to develop 23,968 MW of renewable energy capacity and 6.1 GWh of energy storage.

Drafted by the Bihar Renewable Energy Development Agency (BREDA), the policy spans a wide range of technologies including solar, wind, biomass, green hydrogen, geothermal, pumped hydro, and battery storage. It introduces regulatory and financial incentives to attract private investment, including improved grid access, streamlined approvals, green tariffs, and access to carbon credit markets.

Rooftop solar adoption has been made easier through relaxed norms. The policy also promotes new deployment models such as hybrid parks, renewable energy zones, and campus-based generation projects.  

Currently, Bihar’s generation mix is dominated by coal. According to the Resource Adequacy Plan for Bihar by the Central Electricity Authority (CEA), 73 per cent of the installed capacity under Bihar State Power Holding Company Limited (BSPHCL) comes from fossil fuels. This share is projected to fall to 25 per cent by 2033–34, with renewable capacity additions helping meet both demand and Renewable Purchase Obligations (RPOs) set by the Ministry of Power.

The report notes that to meet peak demand during non-solar hours, the state will need around 5.56 GW/22.26 GWh of energy storage. The state may still need an additional 1,000 MW of coal-based capacity by 2033–34. If renewable and coal additions are delayed, the CEA has warned that Bihar may need to rely more on short- and medium-term open access (STOA/MTOA) contracts to meet seasonal peak demand after 2028–29.