Gujarat Set To See 1.67 GW Of Standalone BESS Project As GERC Gives Nod To Tariffs

Gujarat is now all set to soon see the commissioning of 1.67 GW of standalone Battery Energy Storage System (BESS) projects. This comes after the GERC approved the tariffs of BESS project developers against a tender floated earlier by GUVNL. 

The Gujarat Electricity Regulatory Commission has approved tariffs discovered through a competitive bidding process conducted by Gujarat Urja Vikas Nigam Limited for large-scale standalone battery energy storage systems aimed at supporting grid stability and renewable integration in the state.

The order relates to a petition, in which GUVNL sought tariff adoption for 2,000 MW / 4,000 MWh of Battery Energy Storage Systems (BESS) procured through a competitive process. After reviewing the bidding exercise, the commission approved tariffs for 1,665 MW / 3,330 MWh capacity awarded to nine successful bidders.

Competitive bidding and tariffs

GUVNL told the commission the petition was filed under provisions of the Electricity Act, 2003 seeking adoption of tariffs discovered through a transparent process conducted on behalf of its four distribution utilities.

The procurement was carried out under Phase-VII of the utility’s storage tender. The bidding process began on July 23, 2025, attracting 22 bidders, of which 20 were technically qualified. An e-reverse auction held on November 17, 2025 resulted in tariffs ranging between ₹185,390 and ₹189,000 per MW per month, according to the petition. GUVNL said the rates were competitive and represented a reduction of 11% to 40% from initial price quotes.

Role of battery storage

The utility argued that battery storage projects are necessary to help meet India’s rising Energy Storage Obligations (ESO) and Renewable Purchase Obligations (RPO) while also addressing intermittency from renewable power generation. Battery systems will help stabilise the grid and manage fluctuations in solar and wind generation, the petitioner said. The projects will also receive Viability Gap Funding (VGF) support from the Power System Development Fund, capped at ₹1.8 million per MWh, to be released in three stages linked to project milestones.

Responses from bidders

Several successful bidders—including Sun Drops Energia, Engie Energy India, Mecpower Solutions, Samavist Energy Solutions, Rajesh Power Services and Ultimate Flexipack—submitted affidavits confirming that they accepted the discovered tariffs and had no objection to the commission adopting them.

During the technical evaluation stage, bidders also submitted clarifications regarding their financial strength, shareholding structures and experience to demonstrate compliance with tender requirements. Two bidders—Stockwell Solar Services and Solar91 Cleantech—did not appear at the hearing despite receiving notice from the commission.

Commission’s directions

After reviewing the submissions, GERC concluded that the procurement process complied with the Ministry of Power’s competitive bidding guidelines and approved the discovered tariffs. The commission directed GUVNL to sign Battery Energy Storage Purchase Agreements (BESPA) with the successful bidders within 10 days of the order or within any mutually agreed extended timeline.

It also asked the utility to ensure the agreements comply with the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. Further, GUVNL must publish the names of the successful bidders and their quoted tariffs on its website for 30 days after execution of the agreements and submit copies of the signed contracts to the commission along with an affidavit confirming that no deviations were made from the approved bidding documents, it said.