KPI Green Energy Ltd has received a Letter of Intent from Gujarat Urja Vikas Nigam Limited (GUVNL) for developing self-owned Independent Power Producer (IPP) standalone Battery Energy Storage System (BESS) projects with an aggregate capacity of 445 MW / 890 MWh.
The agreement will be executed through Sun Drops Energia Ltd, a subsidiary of KPI Green Energy Ltd, which has signed a Battery Energy Storage Purchase Agreement (BESPA) with GUVNL. Established in 2004, GUVNL is a government-owned power utility established by the Gujarat Government.
The pact follows a tariff-based competitive bidding process conducted by GUVNL for procurement of standalone BESS capacity under Phase-VII, supported by Viability Gap Funding (VGF) through the Power System Development Fund (PSDF).
Under the BESPA, Sun Drops Energia will develop, own and operate standalone BESS projects with a total capacity of 445 MW / 890 MWh at multiple locations in Gujarat. The contracted battery storage capacity will be made available to GUVNL on a long-term basis.
The agreement marks a key milestone for the group as it moves into the implementation phase of its first utility-scale IPP BESS project, strengthening its presence in emerging segments of the renewable energy ecosystem.
Grid stability and data centre demand
Battery Energy Storage Systems are grid-connected or standalone facilities that store energy during off-peak periods and discharge during peak demand, helping improve grid stability, peak load management and renewable energy integration.
BESS also plays a crucial role in providing reliable backup power for mission-critical infrastructure such as data centres, ensuring uninterrupted operations during grid outages.
With the rapid expansion of global data centres, demand for round-the-clock, reliable and customised power solutions is increasing.
The order highlights the company’s capability to deliver integrated renewable energy and energy storage solutions for data centre operators.
Expanding international footprint
Earlier, KPI Green Energy secured an international order from FVE Lifecare General Trading LLC, United Arab Emirates, for the supply, installation and commissioning of a 33 kWp solar power system integrated with a 573 kWh BESS to power a containerised data centre facility.
The project signals the company’s expanding international presence and highlights the growing importance of integrated solar/wind and battery storage solutions in ensuring reliable and efficient power supply for commercial and industrial applications, including data centres.