Government of Bihar Energy Department

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 energv 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

2 · Definitions:

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4 · Policy Validity and Applicability: This policy shall come into effect from the date of issue and shall remain in force until a new policy supersedes it_

5 · Implementing Agency/Nodal Agency: of Bihar will implement this policy through Bihar State Power Generation 5.1 The Government Company Limited (BSPGCL) as the Nodal Agency,hence all the Power & Function of the State Govt: as provided in the policy document shall be exercised by the Nodal Agency Bihar State Power Generation Company Limited for implementation of PSP Projects.

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6 · Classification of Pump Storage Projects: Pumped Storage Projects may be classified into following three types

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7 · 1.2 Competitive Bidding:

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7 · 2.1 Allocation methodology:

7 · 2.2 Conflict Resolution:

8 · Support and Incentives: To encourage PSP development in the state, the following support and incentives will be offered:

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10 · Facilitation Charges: Developers will pay a one-time fee of INR 50,000 per MW subject to a maximum of Rs. 50 lakhs to the Nodal Agency after allocation of site:

11 · Time Limit for Executing Project: 11.1 The Developer shall commit and adhere to project execution timelines to complete the project within six (6) years from the date of allotment: Indicative timelines for project development are specified below: of Detailed Project Report (DPR) and all statutory clearances and Preparation approvals of the State and Central Governments and the Regulator (as applicable): Developer shall ensure preparation of DPR within 720 days as per guideline of MoP from allotment date (also applicable for Developers developing PSP capacity on existing Hydro sites): Clearance of DPR from CEA shall be responsibility ofthe developer and required to be matched with time frame specified by CEA guidelines (as per latest amendment) II Land acquisition, financial closure and securing funding: Within 3 years of allotment date

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12 · Period of Allocation:

12 · 1 The Pumped Storage Projects shall be offered for a maximum period of forty-five (45) years from the date of allotment at the end of which they shall revert to the State Govt. or be extended further on mutually agreed terms & conditions as per the decision of the State Govt The project assets would be maintained by the successful Developer in condition that would 12.2 ensure a residual life of the project at the rated capacity for at least 30years at any point of time_ 12.3 During the 1Oth, 2Oth, 3Oth and 4Oth vears of operation; as well as during the last year of concession; the State Govt. or one of its appointed agencies would carry out mandatory inspection of the project site to ensure that the project assets are maintained to the required standards to ensure the specified generation capability and residual life of the plant: 12.4 If such inspections find that the plant capacity and/or life are being undermined by inadequate maintenance, the State Govt: would be entitled to seek remedial measures from the Developer: In light of provision contained in NIT & LoA

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