KPI Green Energy, part of the KP Group, has 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 self-owned, independent power producer (IPP) standalone Battery Energy Storage System (BESS) projects with an aggregate capacity of 445 MW/890 MWh. The projects will be developed across multiple locations in Gujarat.
The LoI has been issued pursuant to a tariff-based competitive bidding process under Phase-VII, supported by Viability Gap Funding (VGF) through the Power System Development Fund (PSDF), the company said in a regulatory filing.
The award marks two key milestones for KPI Green Energy: its maiden utility-scale IPP BESS project and its first BESS project awarded by a major government body. The development represents the group’s formal entry into the utility-scale battery energy storage segment, adding a strategic new asset class to its existing renewable energy portfolio, which includes solar, wind, and hybrid power projects.
Standalone BESS projects are grid-connected energy storage facilities that operate independently of any specific solar or wind power plant. These systems are used by utilities to store electricity during off-peak periods and discharge power during peak demand, supporting grid stability and renewable energy integration.
“Standalone BESS projects of this scale are emerging as critical infrastructure for grid reliability, peak power management, and renewable energy integration, and the award underscores the company’s expanding capabilities across emerging clean energy segments,” the company said.
The company further confirmed that it has complied with its disclosure obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The project involves no related-party transactions, and the promoter group has no interest in the awarding entity. The execution timeline will follow the project schedule and terms outlined in the Battery Energy Storage Purchase Agreement.
The development positions KPI Green Energy to capitalise on the growing demand for grid-scale energy storage solutions as renewable energy penetration continues to rise across India’s power sector, while strengthening its participation in policy-backed clean energy infrastructure projects.
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