Kundan Green Energy has received a Letter of Intent (LOI) from Bihar State Power Generation Co. Ltd (BSPGCL) to develop a 10 MW/40 MWh standalone battery energy storage system (BESS) project in Bihar’s Champaran district. Located at the Bettiah Grid Substation in Motihari, the BESS will offer four hours of daily discharge, enabling improved grid balancing and user-end power reliability.
Awarded through a competitive tariff-based reverse auction, the project will be supported via viability gap funding. It will benefit from a monthly tariff of INR 444,000/MW—leading to a financially viable long-term proposition. During the 12-year operational period, the project is expected to generate gross revenues of around INR 64 crore.
The battery energy storage purchase agreement (BESPA) for the project is expected to be signed by July 2025.
“The BESS will be a key enabler for reinforcing Bihar’s power infrastructure with enhanced grid stability, improved renewable integration, reduced T&D losses, and deferment of capital-intensive distribution system investment,” stated Kundan Green Energy. “On the consumer side, it will improve power reliability, particularly in rural areas; help to promote microgrid construction and offer a cost-saving formula for commercial and industrial users through peak shaving. The project will also help promote energy independence for rooftop solar households and catalyze the acceptance of clean energy, as Bihar moves towards a decentralized and resilient energy system.”
Kundan Green Energy, part of Kundan Group, a renewable energy developer with an operational portfolio exceeding 125 MW. The company has established its presence across several states, including Himachal Pradesh, Gujarat, Tamil Nadu, Sikkim, Karnataka, and Uttarakhand.
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