Assam is set to make a major leap in its energy sector through the proposed power sector investments announced in the state Budget 2026-27. With a planned investment of ₹77,353 crore, the government aims to strengthen electricity generation, transmission, and storage while accelerating the transition toward clean and renewable energy. The investment plan covers the entire power value chain and is expected to add 8,457 MW of new power generation capacity, helping the state meet future electricity demand and support economic growth.
A significant share of the investment is focused on renewable energy and energy storage. One of the biggest highlights is the development of Pumped Storage Projects (PSPs), which will contribute 4,900 MW of capacity with an estimated investment of ₹27,100 crore. These projects will be developed at Howraghat (1,500 MW), Baithalangso (1,300 MW), Moti Hojai (1,200 MW), and Tharakunchi (900 MW), located across the districts of West Karbi Anglong, Karbi Anglong, and Dima Hasao. Pumped storage plants play a crucial role in balancing the power grid by storing surplus electricity and supplying it during periods of high demand, making them an important component of renewable energy integration.
The budget also places strong emphasis on expanding solar power generation. Assam plans to develop 75 MW of new solar capacity through investments worth ₹456 crore. This includes a 50 MW ground-mounted solar power project in Sonitpur with an investment of ₹350 crore and the 25 MW Namrup Solar Power Project in Dibrugarh, which will require ₹106 crore. These projects are expected to increase the share of clean energy in the state’s electricity mix while reducing dependence on conventional power sources.
Hydropower also remains an important part of the state’s renewable energy strategy. The budget proposes the development of eleven small hydel projects with a combined capacity of 137.2 MW at a total cost of ₹2,617 crore. These projects will be spread across several districts, including West Karbi Anglong, Udalguri, and Sivasagar, helping to utilize Assam’s abundant water resources for clean electricity generation.
To further strengthen grid reliability, the state has proposed a 25 MW/100 MWh Battery Energy Storage System (BESS) in Kamrup with an investment of ₹170.32 crore. In addition, Assam is planning future renewable energy projects, including the 500 MW NEEPCO Pumped Storage Project in Dima Hasao and a 30 MW integrated solar and battery storage project by Hinduja in Goalpara. Backed by ₹4,600 crore for power evacuation and transmission infrastructure, these initiatives are expected to improve grid stability, support renewable energy integration, attract industrial investment, and position Assam as a power-surplus state with a cleaner and more resilient energy future.
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