Energy Revolution Energized: Prostarm's 150 MW Battery System Lights Up Karnataka's Grid

 

Prostarm Info Systems Limited has secured a pivotal contract to develop a large-scale 150 MW / 300 MWh standalone Battery Energy Storage System (BESS) for Karnataka Power Transmission Corporation Limited (KPTCL). This 12-year build-own-operate (BOO) project, stationed at the 400kV Doni Substation in Gadag District of Karnataka, embodies a significant stride toward enhancing grid stability and renewable energy integration in the region. The deal includes a rental payment structure guaranteeing a consistent revenue stream and strong financial viability for Prostarm.

 

Key News Highlights:

 

Contract awarded for 150 MW / 300 MWh standalone BESS at Doni Substation, Karnataka.

 

Agreement structured on a 12-year Build-Own-Operate basis under competitive bidding.

 

Monthly rental fixed at ₹254,000 per MW, totaling ₹45.72 crore annually for full capacity.

 

Accompanied by State-backed Viability Gap Funding (VGF) offering ₹27 lakh per MWh or 30% of capital cost, whichever is lower.

 

Project crucial for grid balancing and renewable energy variability management.

 

Positions Prostarm as a major player in the Indian energy storage sector.

 

Detailed Overview of the Project

 

Project Scope and Location

The initiative involves the installation and operation of a 150 MW capacity battery storage system with an energy storage capability of 300 MWh. This facility will be set up at the 400kV Doni Substation located in Karnataka’s Gadag District. The BESS will act as a critical energy buffer, storing excess renewable power generated during off-peak periods—primarily from solar and wind sources—and releasing it during peak consumption hours. This capability enhances grid reliability and helps stabilize electricity supply fluctuations caused by the intermittent nature of renewable resources.

 

Contractual and Financial Aspects

Prostarm emerged as the lowest bidder in a tariff-based global competitive bidding process. The contract is framed for 12 years on a build-own-operate basis, promising long-term operational control and revenue generation for the company. Under this contract, Prostarm will receive a structured rental of ₹254,000 per MW per month, which aggregates to a substantial ₹45.72 crore annually for the entire 150 MW system.

 

Additionally, the company benefits from Viability Gap Funding, a financial incentive from the government designed to bridge funding shortfalls in capital-intensive projects. Under this component, Prostarm is eligible for up to ₹27 lakh per MWh or 30% of the project’s capital cost, providing further investment security and encouraging infrastructure development.

 

Strategic Significance and Market Impact

This contract marks an important milestone for Prostarm Info Systems in scaling its footprint within India’s burgeoning energy storage market. Battery Energy Storage Systems are increasingly recognized as essential infrastructure for managing India’s aggressive renewable energy targets, grid modernization, and energy security.

 

By securing this large-scale project, Prostarm strengthens its reputation as a reliable and capable player in clean energy infrastructure. The project not only ensures a steady income stream but enhances Prostarm’s technological expertise and operational capacity within the energy transition ecosystem.

 

Company Background and Future Prospects

Prostarm Info Systems specializes in power solutions including UPS systems, inverters, lithium-ion battery packs, and solar EPC projects. It manufactures and assembles products both domestically and through international partnerships. The company serves sectors such as healthcare, IT, defense, and energy, leveraging its extensive distribution network and strategic acquisitions to fortify its market position.

 

Earlier in 2025, Prostarm announced plans to establish a 1.2 GWh BESS manufacturing facility in Jhajjar, Haryana, underscoring its commitment to growing its role in the domestic battery storage industry. These large-scale projects and infrastructure investments position Prostarm to capitalize on India’s expanding clean energy market and government support mechanisms.

 

Conclusion

Prostarm Info Systems’ recent win of the 150 MW/300 MWh standalone battery energy storage system project for KPTCL represents a substantial advancement in the company’s growth trajectory. The contract’s financial structure, long tenure, and governmental backing through viability gap funding underscore the strength and sustainability of this opportunity. As India intensifies its renewable energy integration, the development and operation of advanced battery storage systems like this will be pivotal. Prostarm’s success in this auction is both a strategic win for the company and a boost for Karnataka’s power grid modernization efforts.

 

Source:  ScanX Trade, Mercom India, Business Standard, Capital Market Live News, and Renewable Watch .