Ahmedabad: Rajesh Power Projects Private Limited, a wholly-owned subsidiary of Rajesh Power Services Limited (RPSL), has signed a Battery Energy Storage Purchase Agreement (BESPA) with state-run Gujarat Urja Vikas Nigam Limited (GUVNL) for the development of a 65 MW / 130 MWh standalone Battery Energy Storage System (BESS) project at Virpor in Gujarat, the company said today.

As per the company, the agreement establishes 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.

Under the BESPA, the project will operate under a 12-year agreement from the date of commissioning at a contracted tariff of ₹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 optimise power procurement.

Commenting on the development, Kurang Panchal, Managing Director, Rajesh Power Services Limited, said, “The signing of the BESPA with GUVNL marks an important milestone for Rajesh Power as we enter the utility-scale battery storage segment. As renewable energy capacity continues to grow, battery energy storage systems will play a critical role in ensuring grid flexibility and reliability. This project reflects our commitment to supporting India’s evolving power infrastructure through high-quality execution and long-term operational capability.” DeshGujarat