Shares of Pace Digitek gained as much as 6% on Friday, October 9, after the company secured a Letter of Intent (LoI) worth Rs 179.4 crore from BSES Rajdhani Power Limited (BRPL) for a battery energy storage project in Delhi. 

The order strengthens the company’s presence in India’s growing energy storage market and adds to its portfolio of long-term infrastructure projects. The project involves developing a standalone Battery Energy Storage System (BESS) with a capacity of 57.5 MW and storage capability of 115 MWh. 

The system will be installed across four BRPL grid stations and will operate on demand to support electricity supply and grid management. Pace Digitek will handle the design, supply, installation, testing, commissioning, operation and maintenance of the system. 

The project will follow a 12-year Build, Own, Operate and Transfer (BOOT) model, under which the company will develop and operate the storage assets before transferring them according to the agreement. The project is expected to be completed within seven months.

Under the long-term Battery Energy Storage Service Agreement, Pace Digitek will receive a fixed capacity tariff of Rs 47.05 lakh per MW annually. This translates into expected contracted capacity revenue of around Rs 27.1 crore per year, providing recurring revenue visibility over the agreement period. 

The latest contract marks Pace Digitek’s fifth major utility-scale storage project under the BOO or BOOT model. With this addition, its portfolio of such projects has increased to 3.32 GWh. The order also follows a Rs 488.6 crore contract received from NTPC GE Power Services in September for standalone battery storage systems, along with maintenance and warranty services. 

The company has been expanding across battery manufacturing, system integration, equipment supply, engineering and construction, and long-term asset operations. Its integrated capabilities could help it participate in India’s increasing demand for grid-scale storage as renewable energy generation expands.

At 12:58 pm, the shares of Pace Digitek were trading 1.91% higher at Rs 164.95 on NSE. 

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