India’s premier power infrastructure investment trust, IndiGrid, has officially announced its acquisition of a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for a significant project. The company is set to design, supply, test, install, commission, operate, and maintain a 180 MW / 360 MWh Battery Energy Storage System (BESS) in Gujarat. This initiative is a segment of GUVNL’s ambitious plan to establish a 250 MW / 500 MWh BESS to enhance the state’s energy storage capabilities and ensure the availability of renewable energy during peak and off-peak times.
The Ministry of Power’s circular dated 29th January 2022 outlines that Energy Storage Systems (ESS) will receive classification based on their application and location. Given the project’s grid connection and location within a GETCO sub-station, it will be integrated into the transmission system.
In a reverse auction held by GUVNL, IndiGrid secured the project as the second-lowest bidder, offering a fixed tariff of INR 449,996 per MW per month, which equates to an annual tariff exceeding INR 97 crore. Awarded through a tariff-based competitive bidding (TBCB) process, the project is set for development on a build, own, and operate (BOO) basis for twelve years, with potential for extension on mutual agreement.
Harsh Shah, IndiGrid’s CEO and Whole Time Director, expressed optimism about the role of Battery Energy Storage Systems in achieving India’s renewable energy targets. He highlighted IndiGrid’s commitment and recent successes in the BESS arena, noting this as the second BESS project win in six months. Shah anticipates rapid growth in India’s BESS landscape, positioning IndiGrid as a key player in this emerging field.
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