KPI Green Energy Enters Utility-Scale Energy Storage with 445 MW BESS Projects

KPI Green Energy Limited has announced that its 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. 

The move marks the solar EPC company’s official entry into the large-scale energy storage sector, expanding its renewable energy portfolio beyond solar, wind, and hybrid power generation.

Project Details and Model

Under the award, Sun Drops Energia will develop BESS projects with a total capacity of 445 MW/890 MWh at multiple locations across Gujarat. These projects will be implemented under the Independent Power Producer (IPP) model and will be fully owned by the company.

The selection of Sun Drops Energia was carried out through a tariff-based competitive bidding process under Phase-VII of GUVNL’s energy storage procurement. 

Notably, the projects will receive Viability Gap Funding (VGF) from the Power System Development Fund (PSDF), a financial mechanism designed to support the development of critical power infrastructure in India.

Strategic Significance

The award represents a major milestone for the KPI Green Energy Group, marking its first-ever utility-scale IPP BESS project and the first awarded by a government-backed entity. 

Standalone BESS facilities are grid-connected units independent of specific solar or wind power plants. 

Interestingly, KPI launched Sun Drops Energia with a strategy that Sun Drops will handle smaller renewable and storage projects in the 0-35 MW category, while larger utility-scale projects would remain under KPI Green.

The KP Group currently has various entities listed publicly, including KPI Green (for developing IPP and CPP), KP Energy (for wind energy projects) and KPI Green Engineering (fabrication and galvanizing).