GreenKo backed GreenCo Energies, Sun Petrochemicals To Invest ₹13,000 Cr in Bihar’s 2.12 GW PSP Projects

Bihar State Power Generation Company Limited (BSPGCL) has recently signed two Memoranda of Understanding (MoUs) to develop 2.12 GW of pumped storage power (PSP). BSPGCL said in a press release that it has selected two agencies—GreenCo Energies Pvt. Ltd., a subsidiary of the Greenko group and Sun Petrochemicals Pvt. Ltd.—to develop the projects. Both projects are proposed in the hilly areas of Nawada district, where the natural height difference is suitable for a pumped storage arrangement.

Under this arrangement, the selected agencies will develop the projects at their own expense. Out of the total ₹13,000 crore investment, GreenCo Energies will invest ₹7,800 crore in Ekamba, while Sun Petrochemicals will invest ₹5,200 crore in Gosaitari. BSPGCL, under the Energy Department, will provide all necessary support to both agencies, with both projects expected to be completed in three years.

Out of the total 2.12 GW capacity, 1,200 MW of pumped storage power (PSP) will be constructed in Ekamba village, and 920 MW will be developed in Gosaitari village of Nawada district. This technology has no adverse impact on the natural flow of rivers and will play an important role in grid stability. Both projects will use off-stream and closed-loop systems, with water from the Dhanerjay and Sakri rivers stored during the monsoon to generate renewable energy. BSPGCL envisions completing the projects within six years to enhance renewable energy generation and storage capacity. 

Bihar Govt Makes ₹13,000 Cr State Investment 

This is the first MoU between the Bihar government and investors after the formation of the new government in Bihar, with a total value of ₹13,000 crore. The Bihar government has prepared an action plan for ₹50 lakh crore investment in the next five years for the state's economic development and employment generation.   

Renewable Energy Investment in Bihar:  

The energy storage capacity of the project proposed by GreenCo Energies Pvt. Ltd. is 7,308 megawatts, and the capacity of the Sun Petrochemicals Pvt. Ltd. project is 6,973 megawatts. Thus, the combined capacity of both projects is 14,281 megawatts. During the construction phase of the project, approximately 8,000 people will be employed. 

The projects will use water stored during the monsoon season to generate renewable energy. This technology has no adverse impact on the natural flow of rivers and will play an important role in grid stability. The MoU was signed in the presence of Chief Minister Nitish Kumar and Energy Minister Bijendra Prasad Yadav.

To strengthen energy security and promote renewable energy in the state, the Bihar government has implemented the Pump Storage Policy-2025. Under this policy, Bihar State Power Generation Company Limited has selected two agencies—GreenCo Energies Pvt. Ltd. and Sun Petrochemicals Pvt. Ltd. Both projects are proposed in the hilly areas of Nawada district, where the natural height difference is suitable for a pumped storage arrangement.

Through these projects, Bihar will gain unprecedented capacity for integration of renewable energy, peak demand management, and maintaining grid stability. This will enable electricity consumers to get electricity at cheaper rates. This initiative started under the state government's pump storage policy, is an important step towards making Bihar self-reliant and technically capable in the energy sector in the future.

Project Started Within Five Months of Policy Formulation

Within just five months of the notification of the Bihar Pump Storage Project Promotion Policy, 2025, the Energy Department has completed all necessary work, including agency selection and land allocation.   

At the event, Bihar Chief Minister Nitish Kumar said, "These Projects Will Enhance the State's Energy Security and Self-Reliance". Whereas, Energy Minister Bijendra Prasad Yadav said, "Energy Department is Committed to Providing Uninterrupted and Clean Electricity to the People and Industries of Bihar". He added, "Investors should survey in Bihar and present their utilities and industrial sectors to the government. In Bihar's growing development environment, the Bihar government is committed to energy conservation and employment generation. These two projects will not only help in fulfilling the state's energy needs but will also prove to be an important initiative towards achieving India's Net Zero emission target of 2070."

The project follows the majopr thermal project with the Adani Group signed by the Bihar government earlier, to be set up at Pirpainti, in Bhagalpur District.