| Work Detail |
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 issued 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. |
