KPI Green Energy wholly-owned subsidiary, Sun Drops Energia, has received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) to develop standalone Battery Energy Storage System (BESS) projects with a combined capacity of 445 MW/890 MWh across multiple locations in Gujarat. This milestone marks the company’s entry into the utility-scale BESS segment and strengthens its footprint in India’s clean energy landscape.
The LOI was awarded following a tariff-based competitive bidding process under Phase-VII of GUVNL’s standalone BESS programme. These projects will be supported by Viability Gap Funding (VGF) through the Power System Development Fund (PSDF), reflecting government backing for large-scale energy storage infrastructure.
According to the company’s regulatory filing, this is the first utility-scale independent power producer (IPP) BESS project for KPI Green Energy and also its first BESS award from a major government entity. The projects will be developed on an IPP model, meaning Sun Drops Energia will fully own and operate the assets upon commissioning.
Standalone BESS installations are grid-connected storage facilities that operate independently of specific solar or wind generation plants. These systems store electricity during off-peak hours and discharge power to the grid when demand peaks, helping manage load balancing and enhance grid reliability as renewable energy penetration increases.
KPI Green Energy currently operates a diversified renewable portfolio that includes solar, wind, and hybrid power projects. With this new BESS venture, the company moves into an emerging and strategically important segment of the energy transition ecosystem, positioning itself to meet growing demand for grid stability and ancillary services.
The execution of the Gujarat projects will follow timelines and conditions outlined in the Battery Energy Storage Purchase Agreement (BESPA), subject to regulatory approvals. The move reflects broader trends in India’s renewable market, where states like Gujarat are increasingly prioritising battery storage to support large-scale green power integration.
 from Gujarat Urja Vikas Nigam Limited (GUVNL).){kind=link}