Prostarm Info Systems Limited announces a major milestone in its growth journey, having been awarded the L-1 (lowest) bid by Karnataka Power Transmission Corporation Limited (KPTCL) for a high-value energy project.
This significant achievement marks a powerful step forward in Prostarm’s strategic expansion into the renewable energy sector and reinforces its position as a competitive force in the industry. The project win not only reflects the company’s growing capabilities but also promises to enhance its presence in the green energy landscape.
But what is the hype?
Prostarm will now build a 150 MW/300 MWh Battery Energy Storage System (BESS) Standalone, which will be established in the 400 kV Doni Substation in the Gadag District in Karnataka, owned by KPTCL. This is basically like a huge battery that can smooth out the power grid (which is particularly important in the incorporation of intermittent sources of renewable power such as solar and wind).
This is not a dead end. This is a long-term relationship. It is on a 12 year long-term basis, with the project being conducted on a Build Own Operate (BOO) basis. This implies that Prostarm will be the builder of the system, the owner and subsequently the operator of the system over a period of more than 10 years, providing a consistent revenue flow.
Fund-wise the deal will be strong. The project is attached to an annual leasing of Rs. 45.72 Crores (this is based on Rs. 2.54 lacs per MW per month of the 150 MW/300 MWh capacity). It is also included in a Tariff Based Competitive Bidding (TBCB) mode that in many situations guarantees fair and competitive pricing. It also has extra VGF (Viability Gap Funding) of Rs. 27 Lacs / MWh, or 30 % of the capital cost of BESS whichever is lesser, to supplement the financing further.
This award demonstrates the expanding capabilities of Prostarm in an energy-starved market that is critical to the energy storage segment, which plays a significant role in India shifting its power grid to greener and stable power. It is a tactical step that puts this company in the energy infrastructure future. Watch out for how this project will develop!
