In a major development for India’s energy storage sector, 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 large-scale standalone battery energy storage projects in Gujarat.
The agreement covers the development of 445 MW / 890 MWh Independent Power Producer (IPP) standalone Battery Energy Storage System (BESS) projects across multiple locations in the state. Gujarat Urja Vikas Nigam Limited will procure the contracted battery storage capacity on a long-term basis once the projects are operational.
The BESPA follows the Letter of Intent (LOI) issued on January 3, 2026, under which the projects were awarded through a tariff-based competitive bidding process conducted by GUVNL. The initiative falls under Phase-VII of standalone BESS procurement, supported by Viability Gap Funding (VGF) through the Power System Development Fund (PSDF).
Under the terms of the agreement, Sun Drops Energia Limited will develop, own, and operate the battery energy storage facilities, ensuring grid support and reliable energy storage capacity for the state’s power infrastructure.
The company stated that the signing of the BESPA marks a significant milestone, as it represents the group’s first utility-scale IPP Battery Energy Storage System project. The development strengthens KPI Green Energy Limited’s position in emerging renewable energy segments, particularly in grid-scale energy storage, which is becoming increasingly critical for integrating renewable power into India’s electricity grid.
The projects are expected to play an important role in enhancing grid stability, supporting renewable energy integration, and ensuring a reliable power supply in Gujarat as the state expands its clean energy capacity.
