Bihar Issues Tender To Build 116 MW Solar Project With 50.5 MW BESS

The Chief Engineer (Generation) of Bihar State Power Generation Company has issued an e-tender to select an EPC contractor for the development of a 116 MW (AC) solar project integrated with a 50.5 MW, 4-hour Battery Energy Storage System (BESS) (minimum 241 MWh capacity). The tender specifies that online submission will commence on March 19, 2025, and the end date for submissions is April 10, 2024.

Surge in BESS Tenders

The demand for solar projects coupled with battery storage has witnessed significant growth in 2024, with a 6.5-fold increase in tendered capacity compared to the combined total from 2018 to 2023. In line with this trend, the Power Transmission & Distribution (PT&D) division of Larsen & Toubro (L&T) has secured an order to develop a 185 MW grid-connected solar PV plant in Kajra, Lakhisarai district, Bihar. The project includes a 254 MWh Battery Energy Storage System (BESS), designed to enhance energy storage capacity.

This initiative is expected to play a crucial role in Bihar’s energy strategy, allowing solar power generated during low-demand periods to be stored and utilized when demand peaks. Additionally, the BESS will stabilize power generation, support frequency regulation, ensure voltage stability, and provide black start capability, which enables the grid to recover quickly after an outage.

Bihar’s Energy Minister, Bijendra Prasad Yadav, has announced the launch of two solar energy projects in Kajra, following approval from the state cabinet, the tender for these projects has been issued. Once completed, the Kajra solar project can add 301 MW battery energy storage system, with a total capacity of 495 MWh.

Project Phases and Financial Model

The government announced that the project will be implemented in two phases, i.e., Phase 1: Development of a 185 MW solar power facility, along with a 254 MWh BESS and Phase 2: Expansion with an additional 116 MW solar power capacity, integrated with a 241 MWh BESS.

With this initiative, Bihar aims to ensure a reliable and cost-effective power supply even during peak demand periods. The total investment for the expansion project is ₹1,055.72 crore, while the Kajra Solar Power Project is valued at ₹1,810.34 crore. Both projects follow an 80:20 financial model, with 80% of funding sourced from financial institutions and 20% contributed as capital investment. To facilitate the project, 1,232 acres of land have already been acquired. Larsen & Toubro (L&T) is overseeing the implementation of Phase 1, with construction progressing rapidly and expected to be completed this year. i.e., 2025.