Kundan Green Energy has received a Letter of Intent (LOI) from Bihar State Power Generation Company Limited (BSPGCL) to establish a 10 MW / 40 MWh stand-alone Battery Energy Storage System (BESS) at the Bettiah Grid Substation in Motihari, Champaran District, Bihar.
This project represents a key advancement in Bihar’s pursuit of a modern, efficient, and clean energy infrastructure. Designed to enable four hours of daily energy discharge, the BESS will facilitate real-time load balancing and support both user-end consumption needs and grid-level operations.
The contract was awarded through a competitive tariff-based reverse auction, highlighting Kundan Green Energy’s commitment to delivering cost-effective and sustainable power solutions. The project will be executed at a monthly tariff of ₹4,44,000 per MW and includes Viability Gap Funding (VGF) of ₹27,00,000 per MWh. Over a 12-year operational term, the project is expected to generate gross revenues of approximately ₹64 crore.
Mr. Udit Garg, Managing Director & CEO of Kundan Green Energy, said, “We are honored to be collaborating with Bihar State Power Generation Company on this ground-breaking Battery Energy Storage System project. This is an important step in augmenting Bihar’s power infrastructure and allowing better access to renewable energy. At Kundan Green Energy, we continue to provide innovative and sustainable energy solutions that solve not just for grid reliability, but for enabling the consumer to have cleaner, more reliable power. This initiative is a testimony of our commitment to fast-tracking India’s energy transitions, leveraging technology and full execution.”
Once operational, the BESS is expected to offer wide-ranging benefits. At the grid level, it will enhance stability, improve renewable integration, reduce transmission and distribution losses, and defer the need for expensive distribution infrastructure upgrades. For consumers, particularly in rural regions, the system will offer improved power reliability, promote the development of microgrids, and enable cost savings through peak shaving for commercial and industrial users. It will also encourage energy independence for rooftop solar households and support the broader transition to decentralized, clean power systems.
The signing of the Battery Energy Storage Purchase Agreement (BESPA) is anticipated by July 2025, marking the next critical phase in project execution.
