BSPGCL Signs MoUs for 2,120 MW Pumped Storage Projects in Nawada, India, Marking Major Energy Investment

The Bihar State Power Generation Company Limited (BSPGCL) on Tuesday signed Memoranda of Understanding (MoUs) with two private developers for the development of 2,120 MW of pumped storage projects in the state, marking a major step towards strengthening Bihar’s energy security and renewable energy integration.

The MoUs were signed in the presence of Hon’ble Chief Minister Shri Nitish Kumar, Deputy Chief Ministers Shri Samrat Choudhary and Shri Vijay Kumar Sinha, Energy Minister Shri Bijendra Prasad Yadav, and Water Resources Minister Shri Vijay Kumar Chaudhary, along with senior state officials.

The agreements have been executed under Bihar’s recently implemented Pump Storage Policy-2025, aimed at enhancing grid stability, peak demand management, and large-scale integration of renewable energy. Under the policy, BSPGCL has selected GreenCo Energies Pvt. Ltd. and Sun Petrochemicals Pvt. Ltd. to develop pumped storage projects in the hilly regions of Nawada district, where natural elevation differences are suitable for such infrastructure.

GreenCo Energies will develop a 1,200 MW pumped storage project, while Sun Petrochemicals will set up a 920 MW facility. Together, the two projects will add 2,120 MW of energy storage capacity to Bihar’s power system.

The MoU for the GreenCo project was signed between Shri Mahendra Kumar, IAS, Managing Director, BSPGCL, and Mr. Anil Kumar Chalamalasetty, Founder, CEO & Managing Director of GreenCo Energies. The agreement for the Sun Petrochemicals project was signed between Chief Engineer Dilip Kumar and Mr. Jimmy Desai, Executive Director, Sun Petrochemicals.

The projects are expected to attract an investment of around ₹13,000 crore and generate employment for approximately 8,000 people during the construction phase. Once operational, the pumped storage facilities will support renewable energy integration, help manage peak electricity demand, improve grid stability, and enable the supply of power at more competitive rates to consumers.

Addressing the occasion, Chief Minister Shri Nitish Kumar said the projects would significantly enhance electricity generation capacity and grid stability in the state, particularly by balancing intermittent renewable sources such as solar and wind energy. He added that the initiatives would strengthen Bihar’s energy security and self-reliance, marking a major milestone in the state’s energy sector development.

Energy Minister Shri Bijendra Prasad Yadav said the projects demonstrate the Energy Department’s commitment to meeting Bihar’s growing power demand while ensuring clean and uninterrupted electricity supply. He noted that the state has not faced electricity consumption shortages over the past five years and urged investors to explore opportunities in Bihar’s energy and industrial sectors. He added that the pumped storage projects would play a crucial role in employment generation and contribute towards India’s Net Zero emissions target of 2070.

The pumped storage initiative under the Pump Storage Policy-2025 is expected to position Bihar as a technically advanced and self-reliant state in the evolving renewable energy landscape.