KPI Green Energy Limited has entered into a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) through its subsidiary Sun Drops Energia Limited. The agreement focuses on the development of standalone battery energy storage system (BESS) projects across the state of Gujarat.
Details of the Battery Storage Projects
The agreement, announced on March 7, 2026, covers the development of battery storage facilities with a combined capacity of 445 MW / 890 MWh. These projects will be implemented at multiple locations across Gujarat and are aimed at strengthening the state’s energy storage infrastructure.
The BESPA was awarded through a tariff-based competitive bidding process conducted by GUVNL under Phase VII of its energy storage programme. The initiative also receives financial support through Viability Gap Funding (VGF) from the Power System Development Fund.
Expansion into Utility-Scale Energy Storage
With this agreement, KPI Green Energy is entering the utility-scale Independent Power Producer (IPP) battery energy storage segment. Under the project framework, the company will develop, own, and operate the BESS facilities, providing long-term battery storage capacity to GUVNL.
This move represents a strategic step in expanding the company’s role in India’s evolving power infrastructure.
Boost to Renewable Energy Integration
The development of battery energy storage projects plays a critical role in improving grid stability, renewable energy integration, and power reliability. By investing in energy storage technology, KPI Green Energy aims to support Gujarat’s transition toward a more resilient and efficient renewable energy ecosystem.
The initiative is also expected to enhance the flexibility of the power grid by enabling better management of electricity generated from renewable sources such as solar and wind.
Summary:
KPI Green Energy Limited, through its subsidiary Sun Drops Energia Limited, has signed a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited for developing 445 MW / 890 MWh of standalone battery energy storage projects in Gujarat. The projects were awarded through tariff-based competitive bidding under Phase VII with support from the Power System Development Fund. The initiative marks KPI Green Energy’s entry into utility-scale battery storage projects, aimed at strengthening renewable energy integration and grid reliability.
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