Rs 3,502 crore Order Book: Battery Energy Storage System Company Signs BESPA with GUVNL for 65 MW / 130 MWh Battery Storage Project in Gujarat

Share price of Rajesh Power Services Ltd were in focus after the company announced the signing of a Battery Energy Storage Purchase Agreement (BESPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) through its wholly owned subsidiary. The agreement relates to the development of a battery energy storage system project in Gujarat, marking the company’s entry into the utility-scale battery storage segment.

The company informed that its subsidiary Rajesh Power Projects Private Limited has signed a Battery Energy Storage Purchase Agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) to set up a 65 MW / 130 MWh standalone battery energy storage system project in Virpore, Gujarat.

Project Details and Agreement Terms

Under the agreement, the project involves the development of a 65 MW battery energy storage system with a storage capacity of 130 MWh at Virpore in Gujarat. The battery system will be capable of supplying stored electricity for up to two hours, supporting grid stability and managing fluctuations in power demand.

The project will operate on a 12-year agreement with the date of commissioning, with a tariff of Rs 1.89 lakh per MW per month. The plant is scheduled to be commissioned in 18 months after the signing of the agreement.

The project was allotted this year under tariff-based competitive bidding under the Request for Selection for the setting up of Standalone Battery Energy Storage Systems Phase VII under GUVNL. The initiative is supported under Viability Gap Funding (VGF) of the Power System Development Fund (PSDF).

Strategic Importance of the Project

The company’s entry into the utility-scale battery energy storage space is through the agreement with Gujarat Urja Vikas Nigam Limited (GUVNL). This project has the potential to open doors for the company in energy infrastructure projects involving energy storage and renewable energy integration.

About the Company

Rajesh Power Services Limited is an engineering, procurement, and Construction company that offers its services in the power transmission and distribution industry. The company offers its services in several areas, including the execution of GIS substations, AIS substations, EHV power cables, transmission lines, and the construction of distribution systems.

Market capitalisation is around Rs 1,649 crore. The company has reported a three-year average return on equity (ROE) of around 40.2 per cent. In addition, debtor days have improved from 86 to 61 days, while the company’s working capital requirements have reduced from 52 days to 39 days, indicating changes in its receivables cycle and working capital management.

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