KPI Green Energy has reached an energized Independent Power Producer (IPP) capacity of 965 MWp following the recent integration of 376 MWp in solar and wind assets. In a parallel regulatory development, the company has executed a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for 445 MW/890 MWh of standalone capacity. This agreement, secured under the GUVNL Phase-VII auction, formally initiates the 12-year contract duration for utility-scale storage deployment in Gujarat.
Independent Power Producer (IPP) Portfolio Analysis
The cumulative energized IPP capacity of 965 MWp marks a significant progression toward the company’s total 2.17 GWp IPP portfolio. This asset-backed model is structured to deliver high EBITDA margin profiles of 85-90% by utilizing long-term Power Purchase Agreements (PPAs), primarily spanning 25 years.
The recent 376 MWp capacity addition comprises the following components:
- Solar IPP: ~182 MWp solar capacity integrated from the GUVNL 350 MWp project.
- Hybrid IPP: ~164 MWp solar and ~30 MW wind capacity integrated from the GUVNL 677 MWp hybrid project.
The remaining IPP portfolio capacity is currently under phased execution.
Key Project Milestones and Execution Timelines
In January 2026, the company commissioned a 240 MWp solar project situated in the South Block of the GSECL-developed 1.8 GW Khavda Solar Park. Connected to the GUVNL network, KPI Green Energy is among the earliest developers to operationalize capacity within this specific block. Furthermore, the company completed a 92.15 MWp hybrid project—consisting of 75.2 MWp solar and 16.95 MW wind—ahead of the scheduled July 2026 deadline.
Targeted completion dates for the balance of the IPP pipeline are detailed below:
| Project Type | Capacity | Targeted Completion |
| Solar IPP (Balance of 350 MWp project) | ~99 MWp | October 2026 |
| Hybrid Project (Balance of 677 MWp project) | ~483 MWp | October 2026 |
| Wind IPP Project | 150 MW | October 2027 |
Standalone Battery Energy Storage System (BESS) Specifics
The BESPA with GUVNL covers 445 MW/890 MWh of standalone BESS capacity, to be developed, owned, and operated by the subsidiary Sun Drops Energia Private Limited under a Build-Own-Operate (BOO) model. The project carries an awarded tariff of ₹185,390/MW/month and will be situated across multiple sites in Gujarat.
The BESS development is supported by Viability Gap Funding (VGF) through the Power System Development Fund (PSDF). Technical and financial specifications include:
- VGF Quantum: ₹1.8 million (~$20,306) per MWh.
- Disbursement Schedule: 20% at financial closure, 50% at Commercial Operation Date (COD), and 30% one year post-COD.
- Operational Requirements: Mandatory annual system availability of 95% and a minimum round-trip efficiency of 85%.
- Local Content: A minimum of 20% local content requirement for project cost, including indigenous EMS application software.
Consolidated Operational Infrastructure and Group Vision
Consolidated operational infrastructure as of Q4 FY26 reflects a total group installed capacity exceeding 1.12 GW, which includes both the IPP segment and the 2.57 GW upcoming/installed Captive Power Producer (CPP) segment.
Technical foundations supporting this capacity include:
- Land Bank: Nearly 6,999 acres.
- Power Evacuation Capacity: Exceeding 3.57 GW.
- Current Order Book: 3.61 GW.
These metrics align with the KP Group’s long-term strategic target to achieve 10 GW of renewable energy capacity by 2030.
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