Government of Bihar — The ELECTRICITY ACT, 2003

## Page 1 Government of Bihar Energy Department Bihar Pumped Storage Projects Promotion Policy-2025 Date:- 17.07.2025 Resolution No- 3401 ## Page 2 GOVERNMENT OF BIHAR ENERGY DEPARTMENT Resolution Patna ,Dated:- 17.07.2025 No.-o/BSPGCL-01/2024- 3401 Sub :- Bihar Pumped Storage Projects Promotion Policy-2025 1. Preamble: 1.1 India's National Electricity Plan (NEP) for 2022-32, released by the Central Electricity Authority (CEA), highlights the critical role of pumped storage in addressing the challenges of integrating renewable energy sources into the grid .As the share of renewable in the overall generation mix increases, large-scale energy storage solutions become essential to manage grid flexibility and ensure system stability. 1.2 The NEP projects a significant rise in pumped storage capacity, from 7.5GW in 2026-27 to 27GW by 2031-32. This reflects the growing need to balance the variable nature of renewable energy sources like solar and wind .Additionally ,the Ministry of Power's Energy Storage Obligations(ESO) mandate DISCOMs to procure 4% of their Renewable Purchase Obligation (RPO) through Energy Storage by 2030. 1.3 Among various storage technologies , Pumped Storage Projects (PSP) stands out as a mature and proven solution. PSP facilities offer several key benefits: Grid flexibility: PSP can rapidly respond to fluctuations in electricity demand and supply, ensuring grid stability. Dispatchability : Unlike variable renewable sources, PSP can generate electricity on demand, providing reliable peak power. Cost-effectiveness: PSP offers a cost-competitive energy storage solution for large-scale applications. Clean, Green and Safe :PSP does not produce any poisonous or harmful by products and thus do not pose any problem of disposal of waste. In recognition of these