Amid massive power purchase costs and minimal revenue, Bihar is turning to solar energy to meet its electricity needs. The state aims for a target of 24 GW of renewable energy capacity and 6 GWh of energy storage systems by 2030. This clean energy initiative is driven by the stark financial realities of the state's energy sector.
Financial Context
In 2025–26, Bihar collected over Rs 19,000 crore from electricity users but spent between ₹25,000 crore and ₹35,000 crore annually to buy power from external sources. Additionally, the state is burdened with Rs 3,800 crore from providing 125 units of free power to 1.89 crore of its 2.2 crore consumers. The average daily demand for electricity in Bihar is between 7,300 and 7,400 MW, peaking at 9,500 MW during the summer, while the state's own generation capacity stands at just 550 MW.
Investment Plans
With electricity demand projected to exceed 11,700 MW by 2030, the Bihar government has announced a Rs 1.38 lakh crore investment plan over the next five years, focusing heavily on renewable energy. Energy department officials emphasize that this initiative is guided by a recent financial turnaround in the power sector rather than solely fiscal pressure.
“"The focus on clean power comes amid a sharp financial turnaround across the state’s energy utilities," a senior energy official told The Indian Express.
