Rajesh Power inks pact with GUVNL for 65 MW/130 MWh battery energy storage project in Gujarat

New Delhi, Mar 6 (PTI) Rajesh Power Services on Friday said its wholly-owned subsidiary, Rajesh Power Projects, has inked an agreement with Gujarat Urja Vikas Nigam for a 65 MW/130 MWh Battery Storage Project at Virpore in Gujarat.

The Battery Energy Storage Purchase Agreement established the long-term framework for the development and operation of the battery storage facility and marks Rajesh Power's formal entry into the utility-scale battery energy storage segment, a company statement said.

Under the Battery Energy Storage Purchase Agreement, the project will operate under a 12-year agreement from the date of commissioning at a contracted tariff of Rs 1.89 lakh per MW per month.

The project involves a 65 MW battery system with a storage capacity of 130 MWh, capable of supplying power for up to two hours.

It is expected to be commissioned within 18 months from the date of signing of the agreement.

The project was awarded to the company earlier this year under tariff-based competitive bidding as part of GUVNL's ‘Request for Selection for setting up of Standalone BESS – Phase VII’, supported by Viability Gap Funding (VGF) through the Power System Development Fund (PSDF).

Standalone battery storage systems are increasingly being adopted by utilities to support renewable energy integration and enhance grid flexibility.

By storing electricity during periods of surplus generation and supplying it during peak demand, such systems help manage intermittency, strengthen grid stability and optimize power procurement.

Gujarat has emerged as one of the leading states in deploying grid-scale battery storage, with GUVNL initiating multiple phases of BESS procurement to complement the state's expanding renewable energy capacity.

Kurang Panchal, Managing Director, Rajesh Power Services, said in the statement, "The signing of the BESPA with GUVNL marks an important milestone for Rajesh Power as we enter the utility-scale battery storage segment." RPSL is one of the leading specialized Engineering, Procurement & Construction (EPC) companies engaged in the Power Transmission & Distribution Sector. PTI KKS DRR