Rajesh Power Projects, a wholly-owned subsidiary of Rajesh Power Services (RPSL), has signed a Battery Energy Storage Purchase Agreement (BESPA) with state-run Gujarat Urja Vikas Nigam (GUVNL) for the development of a 65 MW / 130 MWh standalone Battery Energy Storage System (BESS) project at Virpore in Gujarat.

The agreement establishes the long-term framework for the development and operation of the battery storage facility and marks Rajesh Power's formal entry into the utility-scale battery energy storage segment.

Under the BESPA, the project will operate under a 12-year agreement from the date of commissioning at a contracted tariff of Rs 1.89 lakh per MW per month. The project involves a 65 MW battery system with a storage capacity of 130 MWh, capable of supplying power for up to two hours. It is expected to be commissioned within 18 months from the date of signing of the agreement.

The project was awarded to the company earlier this year under tariff-based competitive bidding as part of GUVNL's ‘Request for Selection for setting up of Standalone BESS – Phase VII', supported by Viability Gap Funding (VGF) through the Power System Development Fund (PSDF).

Standalone battery storage systems are increasingly being adopted by utilities to support renewable energy integration and enhance grid flexibility. By storing electricity during periods of surplus generation and supplying it during peak demand, such systems help manage intermittency, strengthen grid stability and optimize power procurement. Gujarat has emerged as one of the leading states in deploying grid-scale battery storage, with GUVNL initiating multiple phases of BESS procurement to complement the state's expanding renewable energy capacity.