Gensol Engineering stock hits 5% upper circuit after firm bags Rs 1,340-cr battery energy storage project

So far this year, the Gensol Engineering stock has rallied 25.7 percent, beating Nifty's return of 7.6 percent during this period.

Shares of Gensol Engineering were locked at 5 percent upper circuit on June 13 after the company emerged as a successful bidder for the 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) project worth Rs 1,340 from Gujarat Urja Vikas Nigam Limited (GUVNL).

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, the company said in a regulatory filing.

According to the Gensol Engineering, 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 appx Rs 2,680 crore over the 12-year Battery Energy Storage Purchase Agreement (BESPA) tenure.

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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, the company said in its regulatory filing.

"The BESS market in India is poised for exponential growth, and Gensol is at the forefront, ready to lead this transformation. Securing this project enables us to make a significant impact on the Indian energy market," said Anmol Singh Jaggi, Managing Director, Gensol Engineering.

Gensol Engineering is a solar engineering, procurement, and construction businesses, which specialises in solar park and rooftop installations, has completed projects totalling more than 770 MW.

At 12:52 pm, Gensol Engineering shares were trading 5 percent higher at Rs 1,068.05 on the National Stock Exchange (NSE). So far this year, the stock has rallied 25.7 percent, beating Nifty's return of 7.6 percent during this period.

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