Pace Digitek's Lineage Power secures ₹488.46 crore BESS order

Pace Digitek Limited's subsidiary, Lineage Power Private Limited, has been awarded a substantial contract for a Battery Energy Storage System (BESS) valued at ₹488.46 crore. This contract, granted by NTPC GE Power Services Private Limited, focuses on utility-scale energy storage implementation at the Barh Super Thermal Power Project.

The BESS project encompasses a capacity of 5.015 MWh and includes a comprehensive maintenance agreement lasting 12 years. This long-term maintenance contract provides revenue stability and reflects a shift towards more sustainable energy solutions in India's power sector.

Lineage Power received a Letter of Award from NTPC GE, highlighting its role in the evolving energy landscape. The scope of the project includes supply, delivery, testing, and commissioning supervision of the BESS, along with Battery Management Systems (BMS) and Energy Management Systems (EMS). The project is slated for completion by December 31, 2026. The addition of this order strengthens Lineage Power's position in the rapidly growing clean energy infrastructure sector.

The recent order reinforces the success of Pace Digitek's strategy to pivot towards energy storage solutions. This is evident from their recent performance, with consolidated Q1 FY27 revenues showing a 51.29% year-on-year increase to ₹555.36 crore. The net profit for the same quarter rose 13.24% year-on-year to ₹61.32 crore. Such growth indicates a strong market demand for energy storage solutions and highlights the effectiveness of the company's operational strategies.

The awarded contract significantly expands Pace Digitek's order book, which was reported at ₹8,453 crore in August. The 12-year maintenance contract will provide recurring revenue beyond the initial project timeline, enhancing financial predictability and stability.

As India moves toward integrating renewable energy sources into its power grid, utility-scale BESS deployments are becoming increasingly important. In this context, localized infrastructure manufacturers are well-positioned to lead in the capital goods segment as the country invests heavily in clean energy initiatives.

The current Indian power sector reform landscape aims to incorporate clean energy storage solutions to manage grid volatility. Major public energy enterprises are deploying utility-scale storage systems to accommodate varying energy loads from solar and thermal sources. Such developments align well with government initiatives like Atmanirbhar Bharat, promoting localized manufacturing and self-reliance in energy production.

Challenges remain, including a rigid execution timetable with the final delivery set for December 31, 2026, introducing potential penalty exposure if deadlines are not met. Additionally, fluctuations in raw material costs, particularly for lithium-ion cells, pose risks that could impact profitability. Strategic supply agreements may help mitigate these risks, but they remain an area to watch closely.

Recent developments further highlight Lineage Power's growing influence in the sector. In August 2026, it secured a ₹92.93 crore BESS contract from Kalpa Power for a 100 MWh system, enhancing its capabilities and underscoring its momentum in the BESS market.

Overall, the combination of recent contract wins, strong manufacturing capacity of 5 GWh, and a growing order book indicates that Pace Digitek is successfully transitioning into a key player in the energy storage market, moving beyond its traditional telecom roots. The trajectory of the global utility-scale BESS market suggests ongoing growth, making it essential for investors and stakeholders to closely monitor these developments as they unfold.

For a deeper understanding of the trends and forecasts in the energy storage sector, refer to the Global Utility-Scale BESS Market.