Gensol Engineering stock hits 5% upper circuit after company secures ₹1340 crore battery energy storage project

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Gensol Engineering, the flagship company within the Gensol group, were locked in a 5% upper circuit limit in today's early morning trade, touching ₹1068 apiece after the company emerged as a successful bidder for the 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) project worth ₹1340 from Gujarat Urja Vikas Nigam Limited (GUVNL). The company highlighted that this project would supply electricity on an “on-demand" basis to Gujarat State's DISCOMs during peak and off-peak hours, thereby extending renewable energy availability beyond solar hours, fulfilling Energy Storage Purchase Obligations, and enhancing grid resilience.

Also Read: Gensol Engineering top pick among renewable energy stocks on attractive valuationsAccording to the company, the project will deliver 250 MW/500 MWh of energy for two charge/discharge cycles per day. There is a greenshoe option of awarding a second tranche of 250 MW/500 MWh at the discretion of GUVNL under the same terms and conditions; in the event of the exercise of the greenshoe option, the project could reach 500 MW/1000 MWh, potentially generating a total revenue of approximately ₹2680 crore over the 12-year Battery Energy Storage Purchase Agreement (BESPA) tenure.

Being one of the first major projects of standalone BESS in the country, the potential for BESS is set to experience substantial growth, fueled by robust policy backing from the government. Securing the project is a testimony to Gensol’s EPC capabilities and efforts towards integration into the value chain, particularly in Advanced Chemistry Cell-based Energy Storage Systems, the company said in its regulatory filing.