Kundan Green Energy has secured a Letter of Intent (LOI) from Bihar State Power Generation Co Ltd (BSPGCL) to develop a 10 MW/40 MWh standalone battery storage system (BESS) in Champaran, Bihar. The project, set to be installed at the Bettiah Grid Substation in Motihari, will provide four hours of daily energy discharge, enhancing grid stability and ensuring more reliable power supply for end-users.
Won through a competitive tariff-based reverse auction, the project will benefit from viability gap funding and will be supported by a monthly tariff of INR 444,000 per MW. This makes the project financially feasible over the long term, with expected gross revenues of approximately INR 64 crore over its 12-year operational lifespan.
The Battery Energy Storage Purchase Agreement (BESPA) for the project is expected to be finalized by July 2025. In a statement, Kundan Green Energy emphasized that the BESS would be vital in strengthening Bihar’s power infrastructure.
It will improve grid stability, enable better integration of renewable energy, cut transmission and distribution (T&D) losses, and postpone the need for heavy investments in the distribution system. Additionally, the project will enhance power reliability in rural areas, foster the development of microgrids, and provide cost-saving opportunities for commercial and industrial users through peak shaving. The project also supports energy independence for households with rooftop solar and contributes to Bihar’s transition to a decentralized, resilient energy system.
Kundan Green Energy is part of the Kundan Group, a leading renewable energy developer with over 125 MW of operational capacity across various states, including Himachal Pradesh, Gujarat, Tamil Nadu, Sikkim, Karnataka, and Uttarakhand.
Kundan Green Energy develops and operates solar power plants and provides end-to-end solutions for industrial, commercial, and residential clients. By contributing to India’s renewable energy goals, the company plays a key role in the transition to a low-carbon economy, advancing sustainability efforts across multiple sectors
