Gujarat Urja Vikas Nigam Limited (GUVNL) has completed the auction for its 500 MW/1,000 MWh standalone Battery Energy Storage System (BESS) projects under Phase VI. The auction saw strong competition and set a new record in tariff discovery for India’s energy storage market. The lowest tariff quoted was ₹2.80 lakh per MW per month, with all bids ranging between ₹2.80 and ₹2.856 lakh per MW per month. This auction outcome is notable as it is about 25 percent lower than GUVNL’s previously discovered L1 tariff of ₹3.72 lakh per MW per month, and it was achieved without any viability gap funding (VGF).
Out of the total 500 MW/1,000 MWh capacity offered, Solarworld Energy Solutions won 200 MW/400 MWh at ₹2.80 lakh per MW per month. H.G. Infra Engineering secured the remaining 300 MW/600 MWh at ₹2.856 lakh per MW per month, making it the largest winner in this round. The projects will be connected at a 66 kV interconnection point and are designed for on-demand energy storage to support renewable energy use and improve grid reliability in Gujarat.
GUVNL this tender in January 2025, the projects will operate under the Build-Own-Operate (BOO) model and will supply energy storage services to the state’s power distribution companies. Bidders were required to submit proposals for a minimum project size of 100 MWh (50 MW for two hours), with further scaling allowed in 50 MW/100 MWh steps. Developers must also meet grid code requirements and ensure a round-trip efficiency of at least 85 percent. GUVNL has expressed satisfaction with the competitive pricing achieved and sees this as a positive step toward strengthening Gujarat’s renewable energy infrastructure with reliable storage capacity.
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