KPI Green Energy Enters Utility-Scale Storage With 445 MW/890 MWh Standalone BESS Project In Gujarat

KPI Green Energy Limited announced that its subsidiary, Sun Drops Energia Private Limited, has received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for the development of standalone Battery Energy Storage System (BESS) projects. This marks an important step for the company as it officially enters the utility-scale BESS segment for the first time. The awarded projects will be developed under the Independent Power Producer (IPP) model and will be fully owned by the company.

The projects will have an aggregate capacity of 445 MW/890 MWh and will be set up at multiple locations across the state of Gujarat. The selection of Sun Drops Energia was carried out through a tariff-based competitive bidding process under Phase-VII. These projects will also receive Viability Gap Funding (VGF) through the Power System Development Fund (PSDF), which is aimed at supporting critical power infrastructure projects. The support through VGF highlights the strategic importance of large-scale energy storage systems in strengthening the power grid.

This development is a major milestone for KPI Green Energy Group. It is not only the company’s first utility-scale IPP BESS project but also its first BESS contract awarded by a large government-backed entity. With this project, the group expands its clean energy portfolio beyond solar, wind, and hybrid power projects to include standalone energy storage as a new asset class.

Standalone BESS projects operate as grid-connected facilities that are not linked to any specific solar or wind power plant. These systems store electricity during periods of low demand, typically during off-peak hours, and discharge power when demand is high. Such systems play a key role in managing peak power requirements, improving grid stability, and supporting the integration of renewable energy into the electricity network. As renewable energy generation continues to grow, energy storage systems like these are becoming increasingly important for balancing supply and demand.

KPI Green Energy confirmed that GUVNL, the awarding authority, is a domestic entity and that none of the company’s promoters or group companies have any interest in the organization issuing the LOI. The company also clarified that the transaction does not fall under related party transactions. The execution of the projects will be carried out in line with the timelines and conditions specified in the Battery Energy Storage Purchase Agreement (BESPA), subject to obtaining the required regulatory approvals.

This strategic move reflects KPI Green Energy’s growing capability to handle large-scale, policy-supported infrastructure projects. As the need for effective peak power management increases, these standalone BESS projects are expected to play a significant role in strengthening and stabilizing the power grid across Gujarat, while supporting the broader transition toward a cleaner and more reliable energy system.