Image Source: Outlook Business
IndiGrid Infrastructure Trust, India’s pioneering power sector investment trust, has executed a landmark agreement to acquire a 187.5 MW / 750 MWh Battery Energy Storage System (BESS) project in Uttar Pradesh. The deal, valued at an enterprise cap of ₹7,056 million, marks a strategic leap into large-scale energy storage and grid stabilization infrastructure. Once operational, the project is expected to generate annual revenue of ₹810 million, reinforcing IndiGrid’s position as a key enabler of India’s energy transition.
This acquisition aligns with IndiGrid’s broader strategy to diversify its asset base beyond transmission and solar, and to capitalize on the growing demand for flexible grid solutions amid rising renewable penetration.
Key Milestones and Financial Highlights
IndiGrid has signed definitive agreements to acquire the BESS project from EnerGrid, which won the bid under the Tariff-Based Competitive Bidding (TBCB) mechanism floated by SJVN
The project will be set up in Uttar Pradesh with a capacity of 187.5 MW / 750 MWh, making it one of the largest standalone BESS installations in India
The enterprise value of the transaction is capped at ₹7,056 million, subject to customary closing adjustments and regulatory approvals
Upon commissioning, the project is projected to generate ₹810 million in annual revenue through long-term contracts and ancillary grid services
Strategic Significance of the BESS Acquisition
Portfolio Diversification
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IndiGrid’s portfolio now spans 41 assets, including transmission lines, solar generation, and two under-construction BESS projects across 20 states and 2 union territories
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The BESS acquisition complements its existing regulated utility-scale storage project in Delhi and signals a shift toward grid flexibility and peak load management
Energy Transition Enablement
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The BESS system will support renewable integration, frequency regulation, and peak shaving, critical for grid stability in high-demand regions like Uttar Pradesh
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It will also enable time-shifting of solar and wind energy, reducing curtailment and enhancing utilization of clean power
Long-Term Revenue Visibility
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The ₹810 million annual revenue is backed by long-duration contracts, offering predictable cash flows and attractive yield for investors
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IndiGrid’s current yield stands at 9.75 percent, and the addition of BESS assets is expected to be accretive to distributions
Execution Timeline and Technical Overview
The BESS project is expected to achieve Commercial Operation Date (COD) by Q4 FY26, subject to regulatory clearances and construction milestones
It will be equipped with lithium-ion battery modules, advanced energy management systems, and grid interface technologies to ensure seamless integration
The system will operate under a regulated framework, with performance-linked incentives and tariff-based remuneration
Market Reaction and Investor Sentiment
IndiGrid’s stock is trading at ₹159.94, marginally down from its previous close, but near its 52-week high of ₹160.39, reflecting investor optimism around its growth trajectory
The trust has maintained a low beta of 0.42, indicating stability and resilience amid broader market volatility
Analysts view the BESS acquisition as a forward-looking move that positions IndiGrid to benefit from India’s National Energy Storage Mission and rising ancillary service demand
Leadership Commentary and Outlook
IndiGrid’s management emphasized that the acquisition is a strategic step toward building a future-ready infrastructure portfolio. The trust aims to scale its BESS footprint to over 1 GW by 2028, leveraging its execution capabilities and regulatory expertise. The deal also underscores IndiGrid’s commitment to ESG goals, with BESS assets contributing to decarbonization and grid modernization.
Conclusion
IndiGrid Infrastructure Trust’s acquisition of the 187.5 MW / 750 MWh BESS project in Uttar Pradesh marks a defining moment in India’s energy storage landscape. With robust revenue potential, strategic location, and long-term contracts, the project is poised to deliver value across operational, financial, and environmental dimensions. As the country accelerates its clean energy ambitions, IndiGrid stands at the forefront of enabling a smarter, more resilient grid.
Sources: IndiGrid Infrastructure Trust Presentation, Moneycontrol, MarketScreener, Cleantech Hero.
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