KPI Green Energy Limited has announced a major expansion in its battery energy storage business through its subsidiary Sun Drops Energia Limited. The company informed stock exchanges that Sun Drops Energia has signed a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited for the development of a standalone Battery Energy Storage System (BESS) project in Gujarat.

The newly awarded project has a total storage capacity of 120 MW / 240 MWh. This addition comes after an earlier agreement signed for a 445 MW / 890 MWh BESS project with GUVNL. With both projects combined, the KPI Green Energy Group’s total executed standalone BESS portfolio has now reached 565 MW / 1,130 MWh. The company said this achievement reflects its growing focus on utility-scale energy storage infrastructure in India.

According to the company, the project was awarded through a competitive tariff-based bidding process conducted by GUVNL under Phase-VIII. The project is also supported through Viability Gap Funding (VGF), which is being provided under the Power System Development Fund (PSDF) of the Government of India. Under the agreement, Sun Drops Energia Limited will be responsible for the complete development, ownership, and operation of the battery energy storage systems.

The BESS installations will be developed at two strategic locations in Gujarat. A capacity of 65 MW / 130 MWh will be installed near the 220kV Gariyadhar AIS Substation, while another 55 MW / 110 MWh system will be developed near the 220kV Otha AIS Substation. These projects are expected to support grid stability and ensure reliable energy storage availability for GUVNL on a long-term basis.

The company further clarified that GUVNL is a domestic entity and confirmed that there is no involvement of promoters or related parties in the agreement. Therefore, the transaction does not fall under related-party transactions as defined by SEBI regulations.

KPI Green Energy stated that the disclosure was made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The company believes this agreement will strengthen its position in India’s fast-growing battery energy storage market and create new opportunities in the renewable energy sector.

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