GK Energy has received a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) to develop a 150 MW/300 MWh Battery Energy Storage System (BESS) in Maharashtra.
The project will be developed with Viability Gap Funding (VGF) support and is aimed at strengthening energy storage capacity as Maharashtra continues to integrate renewable energy into its power system.
Under the award, the project is scheduled to be commissioned within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA).
The tariff for the project has been fixed at ₹2,38,000 per MW per month. Based on this tariff, GK Energy is expected to generate annual revenue of approximately ₹42.84 crore, excluding GST, for a period of 15 years from the commencement of commercial operations.
The project will comprise 150 MW of power capacity and 300 MWh of energy storage capacity, providing two hours of storage duration. The BESS is expected to support the integration of renewable generation and provide greater flexibility to the electricity system.
The award adds to GK Energy’s activities in the renewable energy and energy infrastructure sector. The company has traditionally been involved in decentralised clean-energy solutions, including solar-powered agricultural pumping systems, rooftop solar installations and distributed renewable energy projects.
The MSEDCL award also expands GK Energy’s presence in the rapidly developing Indian BESS market, where battery storage is increasingly being deployed to address renewable intermittency, peak demand and grid flexibility requirements.
The project will have both an execution component and recurring revenue over the long-term contract period. The company has stated that the transaction does not involve its promoter group and is not a related-party transaction.
The development comes as utilities and renewable energy companies increasingly use BESS projects to complement solar and wind generation. By providing the ability to store electricity and dispatch it when required, battery storage can help improve the flexibility of power procurement and renewable energy integration.
With the 150 MW/300 MWh award from MSEDCL, GK Energy is set to expand its portfolio beyond distributed renewable energy applications into utility-scale energy storage.
