Gensol Engineering shares locked in upper circuit on securing project worth Rs 1,340 crore

In today’s early morning trade, shares of Gensol Engineering, the group’s flagship company, were locked in a 5% upper circuit limit, reaching Rs 1068 apiece after the company became the successful bidder for Gujarat Urja Vikas Nigam Limited (GUVNL)’s 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) project, which is worth Rs 1340.

The project would fulfil Energy Storage Purchase Obligations, increase grid resilience and expand renewable energy availability beyond solar hours, according to the company. It would also offer power to Gujarat State’s DISCOMs “on-demand” during peak and off-peak hours.

The project will supply 250 MW/500 MWh of electricity for two charge/discharge cycles every day, the company claims. The greenshoe option allows GUVNL to award a second tranche of 250 MW/500 MWh under the same terms and conditions. If exercised, the project might produce 500 MW/1000 MWh, which could generate an overall revenue of roughly Rs 2680 crore over the 12-year Battery Energy Storage Purchase Agreement (BESPA).

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