Kundan Green Energy gets LOI for battery energy storage system project in Bihar

New Delhi, Jun 24 (PTI) Kundan Green Energy on Tuesday said it has received a letter of intent (LoI) from Bihar State Power Generation Company to set up a 10 MW/40 MWh stand-alone battery energy storage system project at Bettiah Grid Substation.

The battery energy storage system (BESS) will allow four hours of discharge within one daily cycle, permitting the balancing of user-end electricity needs and grid-level operations, a company statement said.

According to the statement, the BESS project has been granted to Kundan Green Energy through a competitive tariff-based reverse auction process, reaffirming its commitment to providing cheap and clean energy.

The project provides a monthly tariff of Rs 4,44,000 / MW, and VGF is stipulated at Rs 27,00,000 / MWh, leading to a financially viable long-term proposition.

During the 12-year operational period, the project is expected to generate gross revenues of around Rs 64 crore. The signing of the Battery Energy Storage Purchase Agreement (BESPA) is the next major step in the project, expected by July 2025.

Kundan Green Energy Managing Director and CEO Udit Garg said, "This is an important step in augmenting Bihar’s power infrastructure and allowing better access to renewable energy". PTI KKS KKS BAL BAL