KP Energy Secures 91.4 MW Type-B Wind-Solar Hybrid Project Mandate from JK Paper in Gujarat

Executive News Summary

KP Energy Limited, the wind infrastructure arm of the KP Group, has been awarded a Letter of Award (LoA) from JK Paper Limited for the development of a 91.4 MW wind-solar hybrid power project in Gujarat. Classified as a “Type-B” project under the Gujarat Renewable Energy Policy-2023, the facility is designed to support the decarbonization of JK Paper’s industrial operations. This mandate represents a significant strategic pivot for JK Paper, which historically has relied on a 58.5 MW captive thermal power plant at its Odisha facility to meet high-load manufacturing demands. The transition to a hybrid renewable model highlights a growing institutional shift toward sustainable captive power procurement in the energy-intensive pulp and paper sector.

Technical Scope: A Comprehensive Turnkey Mandate

The project is being executed on a complete “ground to grid” turnkey basis. This structure leverages KP Energy’s specialized capability in navigating the early-stage development hurdles often associated with the Gujarat market. Per the regulatory framework and project scope, KP Energy’s responsibilities include:

• Siting and Land Management: Strategic identification of wind/solar sites, land acquisition, and securing all necessary land-use permits.
• Engineering, Procurement, and Construction (EPC): Complete design and supply chain management for the 91.4 MW capacity.
• Installation and Commissioning: Technical deployment and formal synchronization with the regional grid.
• Statutory Clearances: Obtaining all requisite regulatory and environmental approvals to ensure compliance with state and central norms.
• Transmission Optimization: In alignment with Clause 15.3 of the Gujarat Renewable Energy Policy-2023, KP Energy will secure transmission capacity for the higher of the installed wind or solar capacity, ensuring technical efficiency and regulatory adherence.

Infrastructure Development and Long-Term O&M Services

The mandate extends beyond initial commissioning to include the development of critical evacuation infrastructure and dedicated grid connectivity. To ensure operational readiness and long-term asset health for the industrial offtaker, KP Energy will provide comprehensive Operations & Maintenance (O&M) services. The service scope is technically bifurcated by asset class:

This split reflects industry standards where Turbine OEMs often manage the wind machinery, while the developer retains responsibility for the broader infrastructure (BoP). For solar, KP Energy maintains end-to-end operational control.

The Hybrid Advantage: Strategic Significance for Industrial Players

The wind-solar hybrid model offers a superior Capacity Utilization Factor (CUF) compared to standalone assets. By integrating solar generation during daylight hours with wind generation that typically peaks during the evening and night, the project provides a more consistent generation profile for JK Paper’s high-load manufacturing cycles.

For the offtaker, the Type-B hybrid model provides several technical and financial drivers:

• Infrastructure Synergy: Achieving a higher CUF on a single transmission line reduces the per-unit cost of power evacuation.
• Tariff Predictability: The project enables long-term price certainty via 25-year Power Purchase Agreement (PPA) terms, as standardized by the 2023 Policy.
• Grid Stability: Shared evacuation systems facilitate better utilization of the state transmission network.
• Decarbonization Value: A meaningful reduction in indirect (Scope 2) emissions by displacing traditional thermal generation.

KP Energy’s Momentum and 2030 Strategic Targets

This 91.4 MW project reinforces KP Energy’s institutional scale within the Gujarat renewable corridor. The company’s growth is currently benchmarked against the following key performance data points as of the Q4 FY26 reporting period:

• Energized IPP Capacity: The broader KP Group has surpassed the 1 GW milestone in energized Independent Power Producer capacity.
• Institutional O&M Portfolio: KP Energy’s total O&M portfolio has crossed 644 MW, providing a stable recurring revenue base.
• Owned IPP Assets: The company’s own operational IPP assets stand at 48.5 MW, with plans to expand to 100 MW by FY28.
• Execution Pipeline: As of December 2025, the project pipeline stands at over 2.18 GW, contributing to a total cumulative portfolio exceeding 3.29 GW.
• Group Vision: These milestones align with the KP Group’s strategic target to achieve 10 GW of renewable capacity by 2030.

Conclusion

The award of this 91.4 MW hybrid project highlights the continued viability of the captive power model for large-scale industrial players. By securing the full lifecycle of the project—from land acquisition to O&M—KP Energy provides a proof-of-concept for the incentives established under the Gujarat Renewable Energy Policy-2023. The collaboration signifies a clinical progression toward a sustainable industrial power system in India, leveraging technology-neutral hybrid assets to meet high-availability energy demands.