Pace Digitek Arm Signs PPA with BESCOM for 250 MW Solar and 1,100 MWh Battery Storage Project

TRANSGREENX, the asset-holding arm of Pace Group, has signed a Power Purchase Agreement (PPA) with Bangalore Electricity Supply Company Limited (BESCOM) for the development of a 250 MW solar power project integrated with a 1,100 MWh Battery Energy Storage System (BESS) in Karnataka.

The project, located at Pavagada Solar Park, was awarded by Karnataka Renewable Energy Development Limited (KREDL) through a competitive bidding process. It is expected to play a significant role in strengthening grid reliability while supporting the state’s growing renewable energy capacity.

The integrated project will combine 250 MW of solar generation capacity with a 250 MW/1,100 MWh battery energy storage system, enabling the supply of dispatchable renewable energy and enhancing the flexibility of Karnataka’s power system. The energy storage component will allow excess solar power generated during the day to be stored and delivered during peak demand periods, helping improve grid stability and optimize renewable energy utilization.

The Karnataka Electricity Regulatory Commission (KERC) has approved an interim tariff of ₹5.51 per kWh for the project. The agreement is supported by Viability Gap Funding (VGF) and includes a 25-year power purchase tenure, providing long-term revenue visibility and financial stability for the project.

According to the company, the project has an estimated value of approximately ₹1,775 crore and represents a major addition to its growing renewable energy and energy storage portfolio. Upon completion, the project is expected to strengthen Pace Group’s position in India’s utility-scale energy storage market while expanding its battery storage portfolio beyond 5 GWh.

The development comes as utilities across India increasingly invest in large-scale energy storage solutions to address the challenges associated with higher renewable energy penetration. Battery energy storage systems are becoming critical infrastructure for balancing electricity supply and demand, reducing renewable energy curtailment, and supporting grid resilience.

The solar-plus-storage project aligns with Karnataka’s broader strategy to accelerate clean energy adoption while ensuring a reliable and flexible electricity network capable of supporting future demand growth.

Industry experts view integrated renewable energy and storage projects as a key component of India’s energy transition, enabling renewable power to provide firm and dispatchable electricity comparable to conventional generation sources.

With the signing of the PPA, the project moves into the implementation phase and is expected to contribute significantly to Karnataka’s renewable energy ambitions while supporting the broader deployment of grid-scale battery storage across the country.