Gujarat’s Renewable Energy Drive: GUVNL’s 250 MW Battery Storage Project Seeks Tariff Approval For 500 MWh Capacity

In recent developments related to the adoption of renewable energy sources in Gujarat, BSES Gujarat Urja Vikas Nigam Limited (GUVNL) has filed a petition seeking approval for the tariff rates discovered through a competitive bidding process conducted for the procurement of storage capacity from a standalone Battery Energy Storage System (BESS) project.

The petition filed by GUVNL revolves around the approval of tariff rates discovered during the bidding process held on November 29, 2023. This process aimed to secure storage capacity for a 250 MW/500 MWh BESS project to be established in Gujarat. The competitive bidding process involved multiple stakeholders, including Gensol Engineering Limited and IndiGrid, who were selected as successful bidders for different capacities within the project.

GUVNL, as the petitioner, emphasized the transparent nature of the bidding process, which led to the discovery of specific tariff rates per megawatt-hour (MWh) for the selected bidders. Gensol Engineering Limited secured a tariff rate of ₹4,48,996 per MW per month for 70 MW/140 MWh capacity, while IndiGrid was awarded a rate of ₹4,49,996 per MW per month for 180 MW/360 MWh capacity.

The project’s objective is to deploy battery storage technology to manage surplus power generated from renewable sources like wind or solar energy. This stored energy will be utilized during peak demand periods or when renewable energy generation is low, thereby enhancing the stability and reliability of the power supply in Gujarat.

During the regulatory hearing on April 6, 2024, GUVNL presented details regarding the project’s implementation timeline and operational framework. The developers are required to build, own, and operate the BESS project, delivering energy storage services to the State Discoms (Distribution Companies) based on demand fluctuations throughout the day.

A critical aspect highlighted in the petition is the necessity to utilize the BESS project efficiently to balance the grid’s supply-demand dynamics. GUVNL clarified that the developers must ensure the BESS is available for at least two operational cycles per day, involving charge and discharge activities to optimize battery life and performance.

Moreover, questions were raised during the hearing regarding the long-term sustainability of the BESS project beyond its anticipated 12-year lifespan. GUVNL representatives committed to providing detailed justifications and information to address these queries within a specified timeframe following the hearing.

Notably, the regulatory commission overseeing the proceedings expressed concerns about the absence of representatives from IndiGrid during the hearing, despite the issuance of a hearing notice. The commission emphasized the importance of all parties involved in the process to provide their submissions and respond to queries promptly.

The adoption of tariff rates discovered through competitive bidding reflects a strategic effort by GUVNL to integrate advanced energy storage solutions into Gujarat’s power infrastructure. This initiative underscores the state’s commitment to leveraging renewable energy technologies to achieve a sustainable and reliable electricity supply for its residents. The regulatory commission awaits further detailed submissions from all parties involved to make informed decisions regarding the project’s implementation and tariff adoption.

Please view the document here for more details.