KPI Green Terminates 66.20 MW Captive Hybrid Power Project Order Due to Technical Revisions

KPI Green Energy Limited, a key player in India’s renewable energy sector, has formally announced the termination of a 66.20 MW hybrid power project under the Captive Power Producer (CPP) segment. The order, originally placed by M/s Sai Bandhan Infinium Pvt. Ltd., was terminated due to changes in technical requirements that arose after the order was received.

This disclosure was made as per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024.

Background of the Project

The original order from Sai Bandhan Infinium Pvt. Ltd. was to develop a 66.20 MW hybrid power project, which combines both solar and wind energy infrastructure, under the CPP model. This model allows commercial and industrial entities to generate power for their own consumption rather than depending fully on the public grid.

The company had previously communicated about this project on 25th September 2024, marking it as a significant part of its project pipeline at that time.

Reason for Termination

According to the official filing by KPI Green Energy, the order was terminated due to changes in the project’s technical requirements post the issuance of the order. While exact details of the technical adjustments have not been publicly disclosed, such changes are common in large-scale energy infrastructure projects, especially when technological upgrades or logistical constraints emerge during the project planning or initial execution phase.

Importantly, KPI Green has assured stakeholders that this termination will not have any material financial impact on the company.

SEBI-Compliant Disclosure – Annexure I Details

As part of its SEBI-mandated transparency protocol, the company provided detailed disclosures summarised below:

Strategic Implications

Though this termination may seem like a setback in project count, the lack of financial impact suggests that:

• Either no major capital expenditure was incurred yet.

• Or the contract terms included safeguards or flexibility allowing for such exits without penalties.

This could also reflect prudent risk management by KPI Green, ensuring that projects are only pursued when technically and commercially viable.

KPI Green’s Broader Strategy

KPI Green Energy, which focuses on solar, hybrid, and wind power projects, continues to operate across multiple verticals, including:

• Independent Power Producer (IPP) segment

• Captive Power Producer (CPP) segment

• Turnkey EPC solutions for large energy consumers

The company has steadily grown its footprint across Gujarat and other Indian states. While CPP projects help in ensuring long-term customer tie-ups, they also come with the risk of custom technical demands which, if changed post-order, can make execution unviable.

Conclusion

This announcement by KPI Green Energy reflects transparency and discipline in project execution. Even though project cancellations are not ideal, the company’s ability to avoid financial setbacks and update stakeholders promptly is a positive indicator of corporate governance.

The Indian renewable energy sector is evolving rapidly, with hybrid power models gaining popularity due to their reliability and efficiency. However, technical complexity and custom configurations for captive clients often lead to such mid-course corrections.

KPI Green’s robust disclosure under SEBI norms and reassurance of no financial damage should help maintain investor confidence in its broader execution capabilities and strategy.

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