Godawari Power and Ispat has announced the approval to enhance its Battery Energy Storage System (BESS) project capacity from 10 GWh to 20 GWh in the initial phase. This project will be undertaken by the company’s wholly-owned subsidiary, Godawari New Energy Private Limited (GNEPL). The expansion aims to capitalize on the availability of single-line unit manufacturing, leading to cost savings and improved efficiency.
Battery Project Expansion
Godawari Power and Ispat has announced an expansion of its Battery Energy Storage System (BESS) project. The project, executed by its subsidiary, Godawari New Energy Private Limited (GNEPL), will see its initial phase capacity increase from 10 GWh to 20 GWh.
Revised Investment and Phased Approach
The company has decided to increase the total project capacity from the initial 10GWh to 40GWh with a total investment of Rs. 1625 Crores. This expansion will occur in two phases:
Phase 1: Capacity will increase from 10 GWh to 20 GWh with an investment of Rs 1025 Crores expected in FY26-27.
Phase 2: Capacity will further increase from 20 GWh to 40 GWh in FY28-29 with an additional investment of Rs 600 crores.
Strategic Rationale
The decision to increase the project capacity from 10GWh to 20GWh is driven by the availability of a single line unit for manufacturing 20GWh Battery Energy Storage Systems per annum. This approach is expected to optimize land usage, reduce building costs, and lower overall investment.
Projected Cost and Timeline
The setting up of the 20GWh BESS Project is now expected to cost Rs.1025 Crores. Commercial operations are anticipated to commence in Q1 FY2027-28.
Funding Strategy
The project will be funded through a combination of debt, raised by GNEPL, and equity infusion from GPIL’s internal accruals.
Source: BSE