IndiGrid 2, a wholly-owned subsidiary of India Grid Trust, has secured a letter of award, in partnership with Amperehour Solar Technology, from BSES Rajdhani Power (BRPL) for a 20 MW/40 MWh Battery Energy Storage Systems (BESS) project in Delhi. The consortium will develop, own, operate, and transfer the project for 12 years, aiming for an annual revenue of ?20 million (~$240,392). Global Energy Alliance for People and Planet (GEAPP) will finance 70% of the capital investment cost through debt financing.

The BESS technology and total contract cost have not been disclosed. The project, with a one-year construction timeline, will primarily serve energy time-shift and ancillary services. IndiGrid is focused on BESS projects due to the growing energy storage needs resulting from renewable energy expansion. The company recently reported a profit of ?1.07 billion (~$13 million) for the first quarter of the financial year 2024, reflecting a 28.8% year-over-year increase. IndiGrid's portfolio includes 17 operating power projects, 46 transmission lines, 13 substations, and 676 MWdc of solar generation capacity, with assets under management exceeding ?270 billion ($3.24 billion).

In September, the Union Cabinet approved viability gap funding (VGF) for the BESS program, with an initial allocation of ?94 billion (~$1.1 billion), including budgetary support of ?37.6 billion (~$452 million), potentially offsetting up to 40% of the project's capital costs.