KPI Green Energy Limited has taken a major step in expanding its renewable energy portfolio by signing a Battery Energy Storage Purchase Agreement (BESPA). The agreement has been executed between its subsidiary, Sun Drops Energia Limited, and Gujarat Urja Vikas Nigam Limited.
This development follows the Letter of Intent that was earlier issued in January 2026. The agreement relates to the development of self-owned Independent Power Producer (IPP) standalone Battery Energy Storage System (BESS) projects. These projects will have a total capacity of 445 MW / 890 MWh, marking a significant investment in large-scale energy storage infrastructure.
The project was awarded through a competitive tariff-based bidding process conducted by GUVNL under Phase-VII. To support the financial viability of the project, it will receive Viability Gap Funding (VGF) from the Power System Development Fund. This funding support is expected to help accelerate the deployment of battery energy storage solutions in the region.
Under the terms of the BESPA, Sun Drops Energia Limited will be responsible for developing, owning, and operating the battery storage systems over the long term. The BESS installations will be located at multiple sites across the state of Gujarat. Once operational, the storage capacity will be made available to GUVNL on a long-term basis to support grid operations and improve electricity reliability.
The agreement represents the KPI Group’s entry into the implementation stage of its first utility-scale IPP battery storage project. The company stated that the project strengthens its position in the rapidly growing renewable energy and energy storage market.
By securing this contract, KPI Green Energy is expanding beyond traditional renewable power generation into integrated energy storage solutions. Such systems play an important role in supporting grid stability and enabling higher penetration of renewable energy.
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