Pace Digitek Wins 57.5 MW/115 MWh Delhi BESS LoI Under 12-Year BOOT Structure

Pace Digitek Limited (NSE: PACEDIGITK | BSE: 544550), the Bengaluru-based integrated infrastructure and energy solutions company, has received a Letter of Intent (LoI) from BSES Rajdhani Power Limited (BRPL) to develop a 57.5 MW/115 MWh standalone battery energy storage system (BESS) in Delhi. Disclosed to the stock exchanges on 8 October 2026, the project will be executed under a 12-year Build, Own, Operate and Transfer (BOOT) model with a capital outlay of around ₹179.4 crore. It is the company’s fifth major utility-scale storage project under an ownership-based (BOO/BOOT) structure.

BRPL is the largest of Delhi’s three private distribution companies, supplying electricity to over 3 million customers across South and West Delhi.

Project at a Glance

Parameter	Details
Offtaker	BSES Rajdhani Power Ltd (BRPL)
Capacity	57.5 MW / 115 MWh (2-hour duration)
Locations	Four BRPL grid stations, Delhi
Contract model	12-year BOOT
Project capital outlay	~₹179.4 crore
Capacity tariff	₹47.05 lakh per MW per year (fixed)
Annual contracted revenue	~₹27.1 crore
Commissioning	Within 28 weeks of the BESSA effective date
Operating mode	On-demand

Scope of Work and Timeline

Pace Digitek will handle the complete project lifecycle, covering design, supply, testing, installation, commissioning, and long-term operation and maintenance. Instead of a single large installation, the 115 MWh capacity will be distributed across four grid stations in BRPL’s network, placing storage directly within the distribution system.

The system will run on an on-demand basis, allowing BRPL to call on stored energy as its network requires. With a 2:1 energy-to-power ratio, the plant can discharge at its full 57.5 MW output for two hours.

Commissioning is due within 28 weeks, roughly six and a half months, from the effective date of the Battery Energy Storage System Agreement (BESSA). Since the LoI is the precursor to this agreement, the construction schedule begins once the BESSA is executed and becomes effective.

How the BOOT Revenue Model Works

Under the BOOT structure, Pace Digitek will finance, build and own the storage asset, operate it for 12 years, and then transfer it to BRPL. In return, the company will receive a fixed capacity tariff of ₹47.05 lakh per MW per year, translating into contracted capacity revenue of about ₹27.1 crore annually.

A few figures derived from the disclosed numbers put the deal in perspective:

Over the 12-year term, capacity payments add up to roughly ₹325 crore (undiscounted).
The capital outlay works out to about ₹1.56 crore per MWh of installed storage.
Annual capacity revenue equals around 15% of the project’s capital outlay.

Unlike a supply or EPC contract, where revenue is booked once during execution, a BOOT project generates a predictable, annuity-type income stream. The trade-off is that the developer carries the upfront investment, along with performance and availability obligations, for the full contract period.

A Benchmark Against Delhi’s First Utility-Scale BESS

BRPL has prior experience with this model. Its 20 MW/40 MWh BESS at the 33/11 kV Kilokari substation was the first commercial standalone BESS at the distribution level in India to receive regulatory approval for a capacity tariff, granted by the Delhi Electricity Regulatory Commission (DERC) in May 2024. The project SPV, owned by IndiGrid and AmpereHour Energy, is paid a fixed capacity tariff on an availability basis, and the Global Energy Alliance for People and Planet (GEAPP) provided a concessional loan covering 70% of the project cost. The system began commercial operation in 2025 after a 20-month delivery schedule.

Kilokari was contracted at a levelised tariff of ₹57.6 lakh per MW per year, nearly 55% below the earlier benchmark of ₹130 lakh. The new award at ₹47.05 lakh is about 18% lower than Kilokari, for a system nearly three times larger, reflecting how quickly storage tariffs are falling as India’s BESS market matures.

Expanding Pace Digitek’s Storage Portfolio

With the BRPL project, Pace Digitek’s utility-scale BOO/BOOT storage portfolio has grown to 3.32 GWh. The award follows a run of recent BESS orders across different business models:

September 2026: ₹488.46 crore order (including GST) from NTPC GE Power Services to subsidiary Lineage Power Private Limited for BESS containers at NTPC’s Barh STPP, covering supply, commissioning supervision, BMS/EMS, five years of AMC and a seven-year extended warranty.
August 2026: ₹92.93 crore order from Kalpa Power to Lineage Power for supply and commissioning support of a 100 MWh BESS.
May 2026: ₹709.9 crore EPC contract from NLC India Renewables Limited for a 250 MW/500 MWh BESS in Tamil Nadu, with 12 years of O&M.

The company’s total executable order book now stands above ₹11,500 crore, with ₹761 crore of additional orders won since the end of Q1 FY2027.

Manufacturing is anchored by Lineage Power. After operationalising 2.5 GWh of BESS manufacturing capacity in 2025, the company commissioned an additional 2.5 GWh line in August 2026, taking capacity to 5 GWh, and plans to scale towards 10 GWh by Q3 FY2027. It has delivered BESS containers totalling more than 1.5 GWh so far. In-house manufacturing gives Pace Digitek greater control over equipment supply, cost and timelines for projects it will own and operate.

Why This Project Matters

Distribution-level storage: Batteries at discom grid stations can lower power procurement costs, improve grid stability and defer capacity upgrades, benefits already identified for BRPL’s Kilokari system.
Discom-led procurement: The award shows distribution utilities procuring storage directly, alongside large central tenders from agencies such as SECI and NTPC.
Business model shift: For Pace Digitek, a growing BOOT portfolio marks a move from equipment supplier and EPC contractor towards owner of long-term contracted energy assets.

Conclusion

The BRPL project combines distributed substation-level deployment, a 12-year fixed capacity tariff and a tight 28-week commissioning window. For Delhi, it significantly scales up storage within the city’s distribution network; for Pace Digitek, it adds another long-term contracted asset to a fast-growing storage business.