Forecast Report: Bihar Power Demand and Transmission Outlook (2025–2035)

How Will Bihar’s Power Transmission Network Evolve to Meet Future Electricity Demand by 2035?

Executive Summary

Bihar is on the verge of a significant transformation in its electricity sector. As economic development, industrialization, urban expansion, digital infrastructure, and household electrification accelerate, the state's electricity demand is expected to grow rapidly. According to projections by the Central Electricity Authority (CEA), Bihar’s peak electricity demand is expected to increase from 8,078 MW in FY 2024-25 to 18,708 MW by FY 2034-35, reflecting more than a twofold increase within a decade.

To support this growth, Bihar must undertake substantial transmission infrastructure expansion. System studies conducted jointly by Bihar State utilities, CTUIL, Grid-India, and ERLDC indicate that the state will require 23,430 MVA of additional transformation capacity, 5,422 circuit kilometers (ckm) of new transmission lines, and 459 ckm of reconductoring works. These developments are estimated to require investments of approximately ₹12,869 crore.

The proposed transmission expansion plan aims to ensure reliable power delivery, facilitate renewable energy integration, strengthen industrial corridors, improve grid reliability, and maintain resource adequacy through FY 2034-35.

Key Takeaways

• Peak demand expected to rise from 8,078 MW to 18,708 MW by FY 2034-35.
• ₹12,869 crore investment planned for transmission network strengthening.
• 23,430 MVA of new transformation capacity to be added by 2035.
• 5,422 ckm of new transmission lines and 459 ckm of reconductoring required.
• Industrial growth will add around 2,840 MW of new electricity demand.
• 11,454 MW power imports may be needed during peak demand periods.
• 132 kV network dominates the grid, highlighting the need for stronger 220 kV and 400 kV corridors.
• Renewable energy and BESS integration will become critical for future grid flexibility.
• New substations at Darbhanga, Patna, Purnea, Madhepura, and Banka will support emerging load centers.
• The planned transmission system is designed to ensure resource adequacy, reliability, and long-term energy security through 2035.

What Is Driving Bihar’s Electricity Demand Growth Over the Next Decade?

Bihar has emerged as one of India’s fastest-growing electricity markets. Rising incomes, urbanization, industrial development, and improved access to electricity are creating sustained demand growth across all consumer categories.

The state's peak demand has grown steadily over recent years, increasing from 5,115 MW in FY 2018-19 to 8,078 MW in FY 2024-25. This upward trajectory is expected to continue throughout the next decade.

Bihar Peak Power Demand Projection(MW)

Key Insights from the Data

• Total Growth: Peak demand is projected to grow by 12,687 MW over this 12-year period.
• Percentage Increase: This represents a 157% increase from the baseline in FY 2024-25.
• Sharpest Rise: The largest jump occurs between FY 2024-25 and FY 2027-28, with an increase of 3,338 MW in just three years.

The projected demand growth represents a CAGR of approximately 8.8–9.5%. Major drivers include:

• Expansion of industrial parks and Special Economic Zones (SEZs)
• Growth in commercial and service sectors
• Increasing penetration of electrical appliances
• Data centers and digital infrastructure
• Urban housing developments
• Railway and transportation electrification
• Healthcare and educational infrastructure expansion

As demand doubles over the next decade, the transmission network must expand correspondingly to avoid congestion and reliability concerns.

Which Emerging Industrial Projects Will Shape Bihar’s Future Power Requirements?

Industrial development is expected to contribute significantly to Bihar’s future electricity demand. By FY 2034-35, industrial consumers alone could account for approximately 2,840 MW of additional load.

Several major projects are expected to drive this increase:

Expected Power Demand by Major Projects

These developments will require new substations, dedicated transmission corridors, and stronger grid connectivity to ensure uninterrupted power supply.

Industrial growth corridors around Buxar, Patna, Darbhanga, Ara, and West Champaran are expected to become major electricity consumption centers over the next decade.

How Adequate Is Bihar’s Existing Generation Portfolio to Meet Future Demand?

As of April 2025, Bihar has access to approximately 7,685 MW of installed and allocated generation capacity.

Existing Generation Mix

Key Data Insights

• Coal dominates Bihar's generation portfolio, accounting for 92.03% of installed capacity (7,073 MW).
• Renewable Energy contributes 539.26 MW, representing 7.02% of the state's capacity.
• Hydropower remains marginal at only 72.88 MW (0.95%).
• Bihar's power sector remains heavily dependent on thermal generation, highlighting significant opportunities for renewable energy expansion.
• Increasing solar, wind, and storage deployments will be critical for achieving future energy transition and sustainability goals.

The state remains heavily dependent on thermal power resources, particularly coal-based generation and central sector allocations.

While current generation resources are sufficient for present requirements, projected demand growth necessitates substantial additions in both conventional and renewable generation assets.

What New Power Generation Capacity Is Expected by 2035?

To support future electricity requirements, Bihar is expected to add approximately 5,606 MW of new generation capacity by FY 2034-35.

Major Upcoming Generation Projects

Key Data Insights

• Coal dominates Bihar's generation portfolio, accounting for 92.03% of installed capacity (7,073 MW).
• Renewable Energy contributes 539.26 MW, representing 7.02% of the state's capacity.
• Hydropower remains marginal at only 72.88 MW (0.95%).
• Bihar's power sector remains heavily dependent on thermal generation, highlighting significant opportunities for renewable energy expansion.
• Increasing solar, wind, and storage deployments will be critical for achieving future energy transition and sustainability goals.

The generation portfolio will become increasingly diversified through the addition of solar power projects and battery energy storage systems.

Although thermal generation will continue providing baseload support, renewable energy resources will play an increasingly important role in meeting Renewable Purchase Obligation (RPO) requirements and reducing dependence on fossil fuels.

Is Bihar’s Existing Transmission Network Prepared for Future Growth?

Bihar has significantly expanded its transmission infrastructure during the past decade. However, future demand growth will require additional strengthening and modernization.

Structural Infrastructure Insights

• Low Voltage Backbone Domination: The 132 kV network constitutes 65.1% of Bihar's overall running transmission assets, showing a clear reliance on local step-down grids for distributed consumer coverage.
• High-Voltage Corridor Deficit: The ultra-high voltage 400 kV layer accounts for less than 1.5% of intra-state routing lines (312 ckm). This underlines the critical need for the proposed ₹ 12,869.2 crore network augmentation program to expand bulk corridor capacities.

Existing Transmission Network (FY 2024-25)

Structural Infrastructure Insights

• Low Voltage Backbone Domination: The 132 kV network constitutes 65.1% of Bihar's overall running transmission assets, showing a clear reliance on local step-down grids for distributed consumer coverage.
• High-Voltage Corridor Deficit: The ultra-high voltage 400 kV layer accounts for less than 1.5% of intra-state routing lines (312 ckm). This underlines the critical need for the proposed ₹ 12,869.2 crore network augmentation program to expand bulk corridor capacities.

The state’s network has witnessed significant growth in transmission lines and substations since FY 2018-19. However, demand projections indicate that the current infrastructure alone will not be sufficient beyond FY 2030.

Transmission strengthening will therefore become one of Bihar’s most critical infrastructure priorities.

What Transmission Infrastructure Additions Will Be Required by FY 2034-35?

System studies have identified major transmission additions required to maintain grid reliability and meet future demand.

Infrastructure Requirement by FY 2034-35

The proposed investments will enhance transmission reliability, improve voltage stability, reduce congestion, and support future industrial and renewable energy growth.

Key projects include:

• New 400 kV grid substations
• Additional 220 kV network expansion
• Urban GIS substations
• Industrial corridor connectivity
• Reinforced transmission backbones
• Network modernization and automation

Which New Substations Will Become Critical Load Centers in Bihar?

Several strategically located substations have been identified to address future load growth.

Major Planned Substations

Shobhan (AIIMS), Darbhanga

A new 220/132/33 kV GIS substation will support:

• AIIMS Darbhanga
• Airport infrastructure
• Urban expansion
• Nearby districts including Madhubani and Samastipur

Bairiya GIS, Patna

A new 220/33 kV GIS substation is proposed to support:

• Patna Metro
• New ISBT development
• Residential expansion
• Commercial growth zones

Bhawanipur, Purnea

A new 132/33 kV substation will improve reliability and voltage regulation across rapidly growing load centers.

Chausa, Madhepura

The project will enhance supply reliability and facilitate future industrial growth.

Amarpur, Banka

The proposed substation will strengthen power delivery to Banka district and support future renewable integration.

Collectively, these projects will improve network resilience and ensure compliance with planning standards.

Can Bihar’s Future Transmission Network Handle Peak Demand Conditions?

Extensive power system studies were conducted for multiple operating scenarios, including:

• August Solar Maximum
• August Evening Peak
• February Solar Maximum
• February Night Off-Peak

The most challenging operating condition was identified as the August Evening Peak Demand Scenario, when demand reaches its annual maximum and solar generation declines rapidly.

Critical Scenario Results for FY 2034-35

Key Insights

• Demand More Than Doubles Supply: Bihar’s projected peak demand of 18,708 MW is nearly twice its in-state available generation of 9,367 MW.
• Heavy Dependence on Imports: The state will require 11,454 MW of net power imports from the interstate grid during peak demand conditions.
• Transmission Infrastructure Becomes Critical: Such a large import requirement highlights the importance of strengthening 400 kV and 220 kV transmission corridors to ensure reliable power delivery.
• Industrial Growth Driver: Rising demand is expected from industrial zones, data centres, SEZs, airports, healthcare infrastructure, and urban expansion projects.
• Need for Local Generation Expansion: Additional renewable energy, thermal capacity, and battery storage projects will be essential to reduce import dependence and improve energy security.

The studies confirmed that, after implementation of the planned transmission projects, the network remains secure and satisfies N-1 contingency criteria under all scenarios.

No major overloads or voltage violations were observed in the proposed future network configuration.

How Important Will Renewable Energy and Grid Flexibility Be in Bihar’s Future?

Renewable energy is expected to play a larger role in Bihar’s electricity mix over the coming decade. The state currently faces challenges in meeting Renewable Purchase Obligation requirements. Planned solar projects and battery storage systems will help improve compliance.

Future transmission planning must therefore accommodate:

• Variable renewable generation
• Solar evacuation infrastructure
• Energy storage integration
• Flexible transmission operation
• Dynamic reactive power management

Reactive power compensation at distribution and transmission substations will become increasingly important to maintain acceptable voltage profiles as renewable penetration increases.

What Is the Investment Outlook for Bihar’s Transmission Sector Through 2035?

The estimated investment requirement of ₹12,869 crore represents one of Bihar’s largest power infrastructure programs.

Expected Investment Priorities

These investments will not only improve electricity reliability but also support industrialization, job creation, urban development, and economic growth throughout the state.

What Does Bihar’s Power Grid Look Like in 2035?

Forecast Assessment and Conclusion

By FY 2034-35, Bihar’s power system is expected to undergo a significant transformation. Peak demand will exceed 18.7 GW, renewable energy integration will accelerate, industrial load centers will expand, and transmission infrastructure will become more robust and interconnected.

The planned addition of 23,430 MVA transformation capacity, 5,422 ckm of transmission lines, and extensive network modernization measures will ensure that Bihar possesses a reliable and future-ready transmission system capable of supporting long-term economic growth.

If implemented on schedule, the transmission expansion roadmap will enable Bihar to achieve transmission resource adequacy, strengthen energy security, facilitate renewable integration, and sustain the state's development ambitions through 2035 and beyond.