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KPI Green Energy Subsidiary Wins GUVNL LoI for 445 MW/890 MWh Utility-Scale BESS Projects in Gujarat

KPI Green Energy, part of the KP Group, has announced that its wholly owned subsidiary Sun Drops Energia has secured a Letter of Intent (LoI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for the development of 445 MW/890 MWh of standalone battery energy storage system (BESS) capacity across multiple sites in Gujarat.

The projects will be developed under a self-owned independent power producer (IPP) model and were awarded through a tariff-based competitive bidding process for Phase-VII standalone BESS projects. The capacity is supported by Viability Gap Funding (VGF) provided via the Power System Development Fund (PSDF), the company disclosed in a regulatory filing.

According to KPI Green Energy, the award represents a major milestone, marking its first utility-scale IPP battery storage project as well as its first BESS contract awarded by a government entity.

The LoI signals the group’s formal entry into the utility-scale energy storage segment, adding a new strategic asset class to its existing renewable portfolio, which includes solar, wind, and hybrid power projects. The company stated that the move aligns with its broader growth strategy as energy storage becomes increasingly central to India’s power system transition.

Standalone BESS facilities operate independently of generation assets and are deployed by utilities to store electricity during low-demand periods and discharge it during peak demand. Projects of this scale are increasingly viewed as critical infrastructure for grid stability, peak load management, and large-scale renewable energy integration.

Commenting on the development, the company noted that the award highlights its expanding technical and execution capabilities across emerging clean-energy segments, particularly as storage solutions gain prominence in supporting India’s evolving electricity grid.