KPI Green Energy Limited has announced that its subsidiary, Sun Drops Energia Limited, has executed a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for the development of a 120 MW / 240 MWh Independent Power Producer (IPP) Standalone Battery Energy Storage System (BESS) project in Gujarat.
The agreement marks another significant milestone in KPI Green Energy’s growing presence in the utility-scale energy storage sector. With this latest project, the Group’s cumulative executed standalone BESS portfolio has increased to 565 MW / 1,130 MWh, following its earlier BESPA for a 445 MW / 890 MWh BESS project with GUVNL.
The project has been awarded under GUVNL’s Phase-VIII tariff-based competitive bidding process, supported through Viability Gap Funding (VGF) under the Power System Development Fund (PSDF).
Under the terms of the agreement, Sun Drops Energia Limited will develop, own, and operate the standalone BESS project at two locations in Gujarat. The facilities will be established near the 220 kV Gariyadhar AIS Substation, with a capacity of 65 MW / 130 MWh, and the 220 kV Otha AIS Substation, with a capacity of 55 MW / 110 MWh. The contracted storage capacity will be made available to GUVNL on a long-term basis.
The company stated that the execution of the BESPA further strengthens its position in the rapidly expanding battery energy storage market and reinforces its commitment to supporting India’s renewable energy transition through advanced grid-scale storage infrastructure.
Battery energy storage systems are increasingly becoming a critical component of modern power networks, enabling greater integration of renewable energy sources while improving grid reliability and flexibility. The new project is expected to contribute significantly to Gujarat’s energy storage capacity and support the state’s growing clean energy ambitions.
