KPI Green Energy Limited informed stock exchanges on May 19, 2026, that its subsidiary Sun Drops Energia Limited has executed a Battery Energy Storage Purchase Agreement with Gujarat Urja Vikas Nigam Limited for the development of a 120 MW / 240 MWh independent power producer standalone Battery Energy Storage System project — the company’s second BESS order from GUVNL and one that takes its cumulative executed standalone BESS portfolio to 565 MW / 1,130 MWh.
The latest BESPA was executed under GUVNL’s Phase-VIII tariff-based competitive bidding process and is supported by Viability Gap Funding through the Power System Development Fund — a central government instrument designed to make storage projects commercially viable in a period when storage costs, while declining, have not yet reached full grid parity without subsidy support. VGF-backed BESS projects under the PSDF framework provide revenue certainty to developers through a combination of tariff-based payments and gap-funding support, making the project economics more predictable than merchant storage.
Under the terms of the agreement, Sun Drops Energia will develop, own, and operate the project at two locations in Gujarat: 65 MW / 130 MWh at the 220kV Gariyadhar AIS Substation and 55 MW / 110 MWh at the 220kV Otha AIS Substation. The contracted battery energy storage capacity will be made available to GUVNL on a long-term basis. Neither the promoter group nor any group companies have any interest in GUVNL, and the transaction is not a related party transaction.
This order follows the earlier executed 445 MW / 890 MWh BESPA with GUVNL — making KPI Green Energy one of the largest standalone BESS project developers in Gujarat and among the most significant in India’s utility-scale battery storage landscape. The 565 MW / 1,130 MWh cumulative BESS portfolio positions the Surat-based company at the forefront of India’s energy storage buildout at a moment when grid-scale storage has become a policy priority — India’s national electricity plan targets significant BESS capacity additions to balance the intermittency of the rapidly expanding solar and wind generation base.
The order win drove KPI Green Energy’s stock up 2.98% to ₹433.80 on the NSE on May 19, with the intraday high touching ₹436.90 against a previous close of ₹421.25. At a P/E of 18.07x and a market cap of approximately ₹900.50 crore, the stock has recovered from its 52-week low of ₹335.65 but remains 23% below its 52-week high of ₹563.
The BESS order is strategically significant beyond its immediate project scope. India’s energy storage market is at an inflection point — Hormuz-driven fuel price spikes and the government’s push to reduce dependence on thermal generation and imported fossil fuels are accelerating the policy case for grid-scale storage. Utility-scale BESS projects that provide dispatchable renewable energy — the ability to store solar or wind generation and release it on demand — are increasingly central to state utility procurement strategies. GUVNL’s Phase-VIII programme, under which this order was awarded, is one of the largest state-level BESS procurement initiatives in the country.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.