The business stated that this project will provide power to Gujarat State's DISCOMs on a "on-demand" basis during peak and off-peak hours, therefore extending renewable energy availability beyond solar hours, meeting Energy Storage Purchase Obligations, and improving grid resilience.
According to the business, the project will generate 250 MW/500 MWh of energy for two charge/discharge cycles every day. GUVNL has the option to award a second tranche of 250 MW/500 MWh under the same terms and conditions. If exercised, the project could reach 500 MW/1000 MWh, potentially generating a total revenue of around ₹2680 crore over the 12-year Battery Energy Storage Purchase Agreement (BESPA) tenure.
As one of the country's first big independent BESS initiatives, BESS has the potential to develop significantly, fuelled by strong government policy backing. Securing the deal demonstrates Gensol's EPC skills and efforts to integrate into the value chain, notably in Advanced Chemistry Cell-based Energy Storage Systems, the firm stated in a regulatory filing.
Anmol Singh Jaggi, Managing Director of Gensol Engineering Limited, stated, "It's a proud moment for Gensol." This milestone for the GUVNL BESS project not only demonstrates Gensol's experience and dependability in the renewable energy industry, but it also provides a clear path for our future undertakings. It is consistent with Gensol's commitment to achieving India's energy transition goals through creative and sustainable solutions.
"The BESS market in India is primed for exponential expansion, and Gensol is leading the way, preparing to drive this change. Securing this project allows us to have a substantial influence on the Indian energy market while also cementing our position as a top industry leader in the renewable energy environment, which will accelerate the future of BESS in India," Anmol Singh added.
Gensol Engineering is one of India's leading solar engineering, procurement, and construction companies. Gensol, which specializes in solar park and rooftop installations, has executed projects totaling over 770 megawatts. The company is also India's leading solar operation and maintenance supplier.
According to a recent analysis by brokerage Arihant Capital, Gensol Engineering looks to be in a better position than its listed counterparts. The brokerage stated that the company is selling at a discount to its listed rivals due to its distinct business model and the bright future of India's solar sector.
Furthermore, as per the report, Gensol has surpassed its competition in practically every significant statistic. It is the most affordable stock accessible with solar EPC in terms of both P/E and P/B. The firm highlighted its strong EBITDA/income ratio of 26.2%, which is greater than most rivals.
