Pace Digitek Secures ₹1,775 Cr Solar Project with Battery Storage

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AuthorAarav Shah|Published at:
Pace Digitek Secures ₹1,775 Cr Solar Project with Battery Storage
Overview

Pace Digitek Limited has secured a significant award from Karnataka Renewable Energy Development Limited (KREDL) for a 250 MWAC Solar PV Project, complemented by a 250 MW/1100 MWh Battery Energy Storage System (BESS). The project, located in Pavagada Solar Park, is estimated at ₹1,775 Crore and will operate for 25 years under a tariff of ₹5.51 per unit. This development marks a substantial expansion for the company in India's renewable energy sector.

🚀 Strategic Analysis & Impact

Pace Digitek Limited has announced a significant win with an award from Karnataka Renewable Energy Development Limited (KREDL) for a large-scale renewable energy project. The project encompasses a 250 MWAC Solar PV facility integrated with a substantial 250 MW/1100 MWh Battery Energy Storage System (BESS) in the Pavagada Solar Park, Karnataka.

The Event: This award represents a major step for Pace Digitek, injecting a project with an estimated cost of approximately ₹1,775 Crore (including GST) into its portfolio. The project's scope is considerable, featuring both power generation and crucial energy storage capabilities, positioning the company to meet evolving grid demands. Execution is slated within 18 months of signing the Power Purchase Agreement (PPA) and Battery Energy Storage Purchase Agreement (BESPA). Upon commissioning, the facility is contracted to operate for 25 years at a tariff of ₹5.51 per unit, signaling long-term revenue visibility.

The Edge: The inclusion of a BESS is particularly noteworthy. Battery storage is becoming increasingly vital for grid stability, frequency regulation, and integrating intermittent renewable sources. By securing a project with this integrated capability, Pace Digitek demonstrates its ability to undertake complex, modern renewable energy solutions and strengthens its competitive offering in a market that increasingly values dispatchability and grid support.

Risks & Outlook

While this is a positive development, investors should monitor the execution timeline closely. The 18-month window from PPA signing requires efficient project management and supply chain coordination. Delays could impact the project's financial ramp-up. Furthermore, while the tariff is fixed, future regulatory changes or changes in operational costs could affect profitability over the 25-year PPA term. However, the award validates Pace Digitek's capabilities in developing utility-scale solar projects and its strategic move into energy storage, aligning with India's ambitious renewable energy targets and the growing demand for reliable, green power.

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