From Solar to Hydrogen: Power Company Secures Solar Project, Power Trading Licence and Rs 8,000 Crore Gujarat Green Fuel Investment

KPI Green Energy Limited's subsidiary, Sun Drops Energia Private Limited, has been awarded Letters of Award for a 100 MW Solar Power Project on a turnkey basis under the Domestic Content Requirement (DCR) module. The contract, secured from multiple industrial investors under the Distributed Renewable Energy Bilateral Purchase (DREBP) Policy, falls under the company's Captive Power Producer (CPP) business segment. The project scope includes supply, service, and Operations & Maintenance (O&M) for the project's operational life. Execution is tentatively scheduled for completion in the financial year 2026-27 in various tranches.            

Separately, KPI Green Energy Limited has received a Category A Power Trading Licence from the Gujarat Electricity Regulatory Commission (GERC). This strategic milestone allows the company to trade electricity and optimise realisation by aligning power sales with demand curves for the KP Group’s 6+ GW renewable portfolio. This licence enables KPI to participate directly in power exchanges and short-term bilateral markets, offering flexible procurement and transparent pricing to industrial and utility customers, thereby accelerating India's clean-energy transition.

In an expansion of its clean energy focus, the KP Group signed a Memorandum of Understanding (MoU) with the Government of Gujarat's Energy & Petrochemicals Department at the Vibrant Gujarat Regional Conference 2025. The MoU outlines an investment of Rs 8,000 crore to establish a state-wide network of Hydrogen and Electric Vehicle (EV) fuel stations across Gujarat. This initiative, signed on October 9, 2025, aims to strengthen Gujarat’s clean energy and e-mobility ecosystem and is expected to generate approximately 1,000 employment opportunities.

Furthermore, the KP Group, through KPI Green Hydrogen & Ammonia, formed a strategic international partnership by signing an MoU with Jeonbuk Special Self-Governing Province, South Korea, along with GH2 Solar Limited and AHES Co., Ltd. This collaboration aims to advance the global green hydrogen ecosystem by focusing on technology exchange in water electrolysis, joint development of large-scale green hydrogen projects, and market expansion. Leveraging its secured renewable portfolio of 6+ GW, this partnership is a pivotal step for the KP Group to enhance its competitiveness in the global green hydrogen market and strengthen its leadership in renewable energy.

About the Company

KPI Green Energy Ltd, established in 2008 as part of the KP Group, is a renewable energy leader specialising in solar power generation. They operate under the "Solarism" brand, offering a comprehensive solution for both Independent Power Producers (IPPs) and Captive Power Producers (CPPs). Their services include developing, building, owning, managing and maintaining solar power plants across Gujarat, with a current installed capacity exceeding 445 MW. They cater to IPPs by directly generating and selling solar electricity, while also providing Engineering, Procurement and Construction (EPC) services to CPP clients who wish to set up their solar power facilities.

The company's shares have an ROE of 20 per cent and an ROCE of 18 per cent. The company has a market cap of over Rs 8,700 crore with a strong Order Book of 2.95+ GW. The stock gave multibagger returns of 350 per cent in just 3 years and a whopping 6,700 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.