Delectrik Systems and Bondada Engineering advance 120 MWh vanadium battery project in Gujarat

Delectrik Systems has confirmed its participation in a 20 MW/120 MWh vanadium redox flow battery energy storage project in Gujarat, working with Bondada Engineering Limited (BSE: 543971) to deliver a six-hour electricity storage system for Gujarat Industries Power Company Limited (NSE: GIPCL; BSE: 517300). The technology partnership was detailed in industry reporting on October 27, 2026, following Gujarat Industries Power Company Limited’s earlier award process and a letter of intent accepted by Bondada Engineering on October 17. The proposed installation will be developed at the electricity producer’s existing 165 MW natural gas power plant complex in Vadodara, using established transmission infrastructure with necessary upgrades. The project is intended to demonstrate the commercial and operational potential of vanadium flow batteries in India’s expanding long-duration energy storage market, although the final project contract value has not been publicly disclosed.

The development is commercially significant because most grid-scale battery projects currently rely on lithium-ion technology, while vanadium redox flow batteries offer a different approach to storing and discharging electricity over extended periods. Gujarat Industries Power Company Limited is pursuing a system capable of delivering 20 MW of electricity for six hours at its rated configuration, potentially providing a reference installation for utilities considering alternative energy storage technologies. The project also strengthens an existing relationship between Delectrik Systems and Bondada Engineering, following their participation in a separate 100 MWh vanadium flow battery project at Gujarat’s Khavda renewable energy development.

Why is Gujarat Industries Power Company choosing a six-hour vanadium flow battery instead of conventional lithium-ion storage?

The central technical distinction lies in how electricity is stored and delivered. Conventional lithium-ion batteries store energy within electrochemical cells, while vanadium redox flow batteries use liquid electrolytes containing different oxidation states of vanadium. The electrolytes are stored in tanks and circulated through electrochemical cell stacks during charging and discharging. This design allows the energy storage capacity and power output to be scaled more independently, creating potential advantages for applications requiring longer discharge periods.

A 20 MW/120 MWh system is designed to deliver six hours of electricity at its rated power, subject to operational requirements and performance characteristics. This makes the project relevant to electricity system applications extending beyond short-duration frequency management and grid balancing. Six-hour storage can potentially shift renewable electricity from periods of high generation into extended evening demand periods, although the actual operating value depends on electricity prices, charging costs, network constraints and the contractual services provided.

Vanadium flow batteries are also attracting interest because their electrolyte chemistry avoids some of the degradation mechanisms associated with repeatedly cycling lithium-ion cells. The technology can offer long operational life and the possibility of maintaining energy storage capability over numerous charge-discharge cycles. However, these advantages must be evaluated alongside the cost of electrolyte, pumps, power conversion equipment, maintenance and the energy required to circulate liquid through the battery system.

The safety characteristics also differ from conventional lithium-ion systems. Vanadium flow batteries typically use aqueous electrolytes and do not present the same conventional lithium-ion thermal runaway mechanism, although they still require appropriate electrical, chemical and operational safety systems. This distinction may become valuable for stationary installations where fire protection, equipment separation and long-term operating reliability are important considerations.

The Gujarat project will offer an opportunity to examine these characteristics under utility-scale operating conditions. Nevertheless, successful commissioning alone will not demonstrate that vanadium flow batteries are economically superior to lithium-ion systems across every application. The relevant comparison will depend on storage duration, lifetime energy throughput, operating costs and the value of electricity delivered over the installation’s full service life.

How will Delectrik Systems and Bondada Engineering deliver the 120 MWh project at the existing Vadodara gas power station?

The installation will be developed within Gujarat Industries Power Company Limited’s existing gas-fired power station complex in Vadodara. The arrangement is intended to use established site infrastructure, including the 132 kV electrical connection, while incorporating the additional equipment and upgrades required for battery storage. The existing transmission facilities could reduce the need to develop an entirely new grid connection, although the final engineering work must establish the system’s operating and export capabilities.

Bondada Engineering’s scope includes engineering, procurement and construction activities covering equipment supply, civil and structural works, installation, testing and commissioning. The project also involves a ten-year operations and maintenance commitment, indicating that the contractor’s responsibilities extend beyond initial construction. The company has indicated that project execution is scheduled for completion within 18 months from receipt of the relevant notice of award, making the formal commencement milestone important when assessing the delivery timetable.

Delectrik Systems is contributing specialist vanadium flow battery technology, including capabilities associated with battery stacks and electrolyte production. The Indian manufacturer has developed domestic production capabilities for key system components, potentially supporting greater local participation in an energy storage segment where imported technology and materials remain commercially important.

The partnership creates a division of responsibilities between the specialist battery technology provider and the broader engineering contractor. This structure can allow technology developers to participate in larger utility projects without independently providing every element of civil construction, grid interconnection and balance-of-plant engineering. However, the effectiveness of the arrangement will depend on coordination across system design, component supply, commissioning and maintenance responsibilities.

The project has received approval from Gujarat Urja Vikas Nigam Limited as a pilot initiative to examine long-duration energy storage and power system flexibility. Its location at an existing gas-fired generation site does not automatically mean the battery will be charged exclusively using electricity generated by that plant. The final charging arrangements and dispatch strategy will depend on applicable technical and commercial requirements.

What does the Gujarat award mean for Delectrik’s growing vanadium flow battery portfolio and India’s storage market?

The Vadodara development builds on Delectrik Systems’ previous selection for a 100 MWh vanadium flow battery installation associated with NTPC Renewable Energy Limited’s Khavda project in Gujarat. That earlier project, involving approximately 16.7 MW of power capacity, provides another example of a six-hour storage configuration. Together, the two announced developments represent approximately 220 MWh of planned vanadium flow battery capacity, although the projects should not be described as fully commissioned.

Delectrik has also developed experience through smaller demonstration systems, including a 3 MWh installation associated with NTPC. Such projects can be important for establishing operating data before developers and utilities commit to larger deployments. Performance information from actual installations may help prospective customers assess efficiency, electrolyte management, system availability and maintenance requirements rather than relying exclusively on laboratory results or supplier forecasts.

The growing emphasis on longer-duration storage reflects changes in India’s electricity supply requirements. As solar and wind generation expand, utilities need technologies capable of moving electricity across longer periods and supporting power system stability when variable renewable generation declines. Short-duration lithium-ion batteries already serve many grid applications, but the increasing requirement for four-hour, six-hour and potentially longer storage creates room for different technologies to compete.

Vanadium flow batteries may offer advantages in applications involving frequent cycling and extended discharge periods. Their liquid electrolyte can also create opportunities for long-term reuse or recycling, although the environmental and financial benefits depend on manufacturing, material sourcing and end-of-life arrangements. In contrast, their lower energy density and the need for pumps and tanks can create disadvantages where land use, equipment footprint or initial capital cost are major constraints.

The development therefore represents technological diversification rather than evidence that one battery chemistry will replace all others. Lithium-ion systems retain advantages in manufacturing scale, established supply chains and many short-duration applications. Vanadium flow batteries must demonstrate that their potential longer operating life and cycling characteristics can compensate for any additional initial cost or operating complexity.

For Delectrik Systems, a successful utility-scale installation could provide operational evidence relevant to future domestic and international bids. For Bondada Engineering, participation strengthens its credentials in specialised energy storage engineering, potentially supporting diversification beyond more conventional renewable infrastructure contracts.

How are Bondada Engineering and Gujarat Industries Power Company shares responding to the long-duration storage opportunity?

The project has different investment implications for the contractor and the electricity generator. For Bondada Engineering, the award provides exposure to a specialist engineering segment that could expand as utilities procure additional long-duration storage systems. However, the undisclosed contract value makes it difficult to determine the project’s contribution to the group’s order book, revenue or operating earnings. The presence of a ten-year maintenance commitment also creates potential recurring service activity, although its financial contribution has not been separately quantified.

Bondada Engineering shares closed October 27, 2026, at ₹274.05 on the BSE, gaining approximately 3.83% from the previous session. Gujarat Industries Power Company Limited shares closed at approximately ₹158.29 on the National Stock Exchange, a gain of about 3.56%. These movements show positive trading during the session, but they cannot be attributed solely to renewed reporting on the battery project because broader market conditions and other company-specific developments may also have influenced the stocks.

For Gujarat Industries Power Company Limited, the proposed installation offers a way to evaluate an additional electricity storage technology using an existing power generation site. The operational benefits could include improved flexibility and the ability to manage electricity delivery over longer periods, although the financial value will depend on actual dispatch arrangements and applicable tariffs or service payments. Investors should distinguish the demonstration and infrastructure benefits from any immediate earnings contribution.

The ten-year operating and maintenance component also introduces an important performance consideration. Long-duration storage economics depend on more than successful construction, requiring reliable operation, acceptable round-trip efficiency and management of equipment degradation over many years. The project’s commercial competitiveness will only become clearer once system performance and operating expenditure can be evaluated against comparable storage technologies.

The technology’s future position in India will also depend on whether local suppliers can manufacture equipment at competitive costs as deployments increase. Domestic electrolyte and stack manufacturing could improve supply-chain resilience, but vanadium prices and component costs remain important variables. Larger production volumes may create opportunities for cost reductions, although these cannot be assumed before they are demonstrated.

Can the Vadodara installation help establish a broader commercial market for six-hour flow battery storage in India?

The project could become a useful reference point for utilities evaluating storage technologies beyond conventional lithium-ion systems. Its scale is large enough to test important aspects of operating performance, while the existing power station environment provides access to established electricity infrastructure. The results may help determine whether similar configurations can be deployed at renewable energy parks, thermal power stations, industrial facilities and other grid-connected sites.

Nevertheless, several milestones remain before those benefits can be assessed. The project must progress through detailed engineering, equipment manufacturing, civil works, installation, commissioning and performance testing. The proposed 18-month delivery period depends on the formal notice-of-award timeline, while the full contract value and financing arrangements have not been publicly established.

The commercial case will ultimately require evidence on operating efficiency, availability, maintenance costs and the number of useful energy cycles achievable during the system’s life. These metrics will be especially important because the economic benefits of long-duration storage can accumulate over extended operating periods rather than being fully visible during the first year.

For Gujarat Industries Power Company Limited, the project offers a controlled opportunity to examine an alternative storage chemistry within an existing electricity infrastructure environment. For Delectrik Systems and Bondada Engineering, it represents a chance to demonstrate that their combined technology and construction capabilities can deliver utility-scale storage reliably.

The longer-term significance extends beyond the capacity of the individual installation. India’s growing renewable generation portfolio will require a combination of storage durations, technologies and grid infrastructure solutions. If the Vadodara project achieves its technical and economic objectives, it could provide evidence supporting broader adoption of vanadium flow batteries in applications where six-hour or longer electricity delivery is commercially valuable.