KPI Green Energy Limited strengthened its renewable energy portfolio by signing a Battery Energy Storage Purchase Agreement (BESPA) for large-scale battery storage projects in Gujarat. The agreement was executed between the company’s subsidiary, Sun Drops Energia Limited, and Gujarat Urja Vikas Nigam Limited. The development marks an important milestone for the company as it moves forward with its first utility-scale Independent Power Producer (IPP) battery energy storage project.
Project to Deliver 445 MW / 890 MWh Storage Capacity
The agreement covers the development of self-owned standalone Battery Energy Storage System (BESS) projects with a total capacity of 445 MW / 890 MWh. These projects represent a significant investment in large-scale energy storage infrastructure. Notably, the BESPA follows a Letter of Intent issued in January 2026, confirming the project award to the KPI Group. With the agreement now in place, the company can begin the implementation phase of the project.
Awarded Through Competitive Bidding
The project was awarded through a competitive tariff-based bidding process conducted by Gujarat Urja Vikas Nigam Limited under Phase-VII of its battery storage procurement programme. To improve financial viability, the project will receive Viability Gap Funding (VGF) from the Power System Development Fund. This funding mechanism is designed to encourage investment in advanced grid infrastructure and accelerate the deployment of battery storage technologies. As a result, the project is expected to contribute significantly to the expansion of energy storage capacity in India’s power sector.
Multiple BESS Installations Across Gujarat
Under the BESPA, Sun Drops Energia Limited will develop, own, and operate the battery energy storage systems over the long term. The BESS facilities will be installed at multiple locations across the state of Gujarat. Once operational, the storage capacity will be supplied to Gujarat Urja Vikas Nigam Limited under a long-term arrangement. The systems will help support grid stability, peak load management, and reliable power supply.
Strategic Expansion into Energy Storage
The agreement represents the KPI Group’s entry into the implementation stage of its first
utility-scale IPP battery storage project. The company said the project strengthens its position in the rapidly expanding renewable energy and energy storage market. By securing this contract, KPI Green Energy Limited is expanding beyond conventional renewable power generation into integrated energy storage solutions. As reported by solarquarter.com, as renewable energy capacity continues to grow, battery storage systems will play a crucial role in balancing supply and demand, stabilising electricity grids, and enabling higher penetration of solar and wind energy.
