GERC Approves BESS Project Tariff, Blames GUVNL For Delays

The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs discovered through a competitive bidding process for the development of 500 MW/1000 MWh standalone Battery Energy Storage Systems (BESS) in Gujarat, despite flagging concerns over procedural lapses by state utility GUVNL.

The bidding, part of Phase IV of GUVNL’s global tender, attracted 15 technically qualified bidders with 14 advancing to the reverse auction held on November 29, 2024. Four firms—Kintech Synergy, H.G. Infra Engineering, Bhilwara Energy, and Advait Energy Transitions—were awarded capacity at tariffs ranging from Rs. 225,985 to Rs. 226,000 per MW per month, reportedly the lowest discovered in GUVNL’s BESS tenders to date.

VGF Support 

The projects, backed by Viability Gap Funding (VGF) under the Ministry of Power’s State Component scheme, are intended to help Gujarat meet its Energy Storage Obligation, which scales up to 4% by FY 2029-30. 

In its May 6 order, GERC said it was satisfied with the transparency of the bidding process but sharply criticized GUVNL for failing to provide required justifications for substation selection, technical parameters, and GETCO certifications, despite repeated Commission directives.

GERC Order

Calling the omissions “disturbing and deplorable,” the Commission nonetheless cleared the tariff adoption citing urgency due to limited availability of the central VGF scheme. It directed GUVNL to execute the Battery Energy Storage Purchase Agreements (BESPA) and publish bidder details and tariffs publicly.

The Commission also warned of accountability measures for GUVNL’s non-compliance and instructed that all BESPAs incorporate provisions under the Electricity (Late Payment Surcharge) Rules.