Gensol Engineering shares hit 5% upper circuit on securing energy storage project worth ₹1,340 crore in Gujarat

In a filing to the stock exchanges, the company said that it emerged as the successful bidder for a 250 Megawatt, or 500 Megawatt Hour, standalone Battery Energy Storage Systems (BESS) project from the Gujarat Urja Vikas Nigam Limited (GUVNL). The size of the contract is ₹1,340 crore.

The company informed the stock exchanges that the project will supply electricity on an ‘On-Demand’ basis to power distribution companies in Gujarat during peak and off-peak hours. The electrical equipment manufacturer added that the BESS project will help the company in expanding the use of solar energy beyond solar-hours.

Gensol Engineering also said in a release that it will deliver 250 MW/500 MWh energy for two charge and discharge cycles per day.

As a part of the contract, GUVNL has a greenshoe option of awarding a second tranche of 250 MW/500 MWh with the same terms and conditions. The company also said that if the greenshoe option is exercised the project could reach 500 MW/1,000 MWh. The project is likely to generate a total revenue of nearly ₹2,680 crore over the 12-year Battery Energy Storage Purchase Agreement (BESPA) tenure, according to the release.

Gensol Engineering will provide state-of-the-art energy storage solutions and advanced energy management systems to comply with availability and efficiency standards, the company said.

Gensol Engineering, a part of the Gensol group, specialises in engineering, procurement, and construction (EPC) services with a focus on the solar power sector. Till date the company has completed solar installations totalling more than 770 MW.

The company’s revenue from operations for the March quarter surged 143% to ₹398.82 crore compared to ₹163.93 crore in the same quarter of the preceding fiscal. The electrical equipment manufacturer’s net profit for the March quarter zoomed 168% to ₹19.78 crore compared to ₹7.38 crore on a year-on-year basis.