KPI Green Energy Limited, through its subsidiary Sun Drops Energia, has secured a Letter of Intent from Gujarat Urja Vikas Nigam Limited for utility-scale standalone battery energy storage projects in Gujarat. The 445 MW / 890 MWh portfolio marks the group’s entry into the standalone BESS segment under the IPP model. Awarded via tariff-based competitive bidding, the projects qualify for Viability Gap Funding and will support peak demand management, grid balancing, and system reliability.
| Developer / Owner | Procurer | Total Capacity | Procurement Route | Commercial Model | Funding Support |
|---|---|---|---|---|---|
| Sun Drops Energia Pvt. Ltd. (KPI Green Energy Group) | Gujarat Urja Vikas Nigam Limited | 445 MW / 890 MWh | Tariff-based competitive bidding (Phase VII) | IPP | Viability Gap Funding under PSDF |
India-based renewable energy developer, KPI Green Energy Limited announced that its owned subsidiary, Sun Drops Energia Private Limited, has received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for the development of standalone Battery Energy Storage System (BESS) projects in Gujarat. The award represents KPI Green Energy Group’s entry into the utility-scale standalone energy storage segment under the Independent Power Producer (IPP) model.
The portfolio covers a total installed capacity of 445 MW with an associated energy storage capacity of 890 MWh developed across multiple locations within the state. Sun Drops Energia was selected through a tariff-based competitive bidding process conducted under Phase VII of Gujarat’s storage procurement program. The projects will be fully owned and developed by KPI Green Energy Group through its subsidiary.
The awarded BESS installations have also been approved for Viability Gap Funding (VGF) support under the Power System Development Fund (PSDF). The funding mechanism is intended to address capital cost considerations associated with large-scale standalone storage projects and support tariff viability. Such projects are being procured as grid assets to support peak demand management, short-duration balancing, and system reliability.
KPI Green Energy has clarified that Gujarat Urja Vikas Nigam Limited is a government-backed procuring entity and that neither the company’s promoters nor its group entities hold any interest in the awarding authority. The company also confirmed that the transaction does not constitute a related party arrangement. Project execution will proceed in line with the timelines, technical specifications, and commercial terms set out in the Battery Energy Storage Purchase Agreement, subject to applicable regulatory approvals.
The Gujarat projects represent the company’s first utility-scale BESS initiative under an IPP framework and its first storage contract awarded by a large state-level power procurement agency. Until now, KPI Green Energy’s operational and development portfolio has primarily focused on solar, wind, and hybrid renewable power projects. The addition of standalone battery storage introduces a new asset class within the group’s project pipeline.
The Gujarat award marks KPI Green Energy’s first utility-scale standalone battery storage mandate and its first storage contract from a state-level power procurement agency. Until now, the company’s portfolio has primarily comprised solar, wind, and hybrid renewable power projects, with the addition of standalone storage expanding its asset mix within the power sector.