Shares of KPI Green Energy Ltd surged 4% on 8 July after the company announced signing a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam (GUVNL) for a 50 megawatt (MW) Solar-Wind Hybrid Power Project.

In addition to designing, constructing, and maintaining grid-connected solar power projects, the company will sell the power units generated by its solar plants.

The project consists of 16.80 MW of wind power and 50 MW of solar electricity, was acquired through a competitive bidding process by GUVNL on 1 November 2023 and was secured via a reverse E-Auction by the company on 22 January 2024.

The Chief Electrical Inspector (CEIG) gave KPI permission last week for its 13.60 MW of solar power projects that fall under the Independent Power Producer (IPP) category. Through its wholly-owned subsidiary Sun Drops Energia, these projects will be added to its portfolio of assets for electricity generation. In addition, KPI’s Captive Power Producer (CPP) business segment has been approved by CEIG for 15 MW of solar power projects.

In May, the board approved a plan to fund up to Rs 1,000 crore by issuing shares through qualified institutional placement. The shareholders’ consent is necessary for this.

At 3:30 pm, the shares of KPI Green Energy closed 3.21% higher at Rs 1,840.10 on NSE.