GUVNL Issues Tender For 400 MW/800 MWh Battery Energy Storage Projects With Green Shoe Option

Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a Request for Selection (RfS) for the development of 400 MW/800 MWh standalone Battery Energy Storage Systems (BESS) in Gujarat. The initiative includes an additional “Green Shoe” option, allowing for an extra 400 MW/800 MWh capacity, making the total potential capacity 800 MW/1600 MWh. The projects will be established under a “Build-Own-Operate” (BOO) model, with developers selected through a tariff-based global competitive bidding process.

The RfS outlines that developers must submit an Earnest Money Deposit (EMD) of ₹5,00,000 per MW in the form of a bank guarantee. Additionally, selected bidders will be required to provide a Performance Bank Guarantee (PBG) of ₹12,50,000 per MW before signing the Battery Energy Storage Purchase Agreement (BESPA). Bidders can submit queries to GUVNL by September 30, 2024, with a pre-bid meeting scheduled through video conference on October 3, 2024. The last Date & Time for Submission of documents will be on 16^th October 2024 and the Technical Bid Opening date will be on 17^th April 2024.

The Central Electricity Authority (CEA) has identified BESS and Pumped Hydro Storage Systems as key solutions for increasing energy storage capacity. According to CEA’s study, battery energy storage systems are expected to be selected from 2027-28 onwards, with a projected capacity of 8,680 MW/34,720 MWh by 2027. This will complement the 7,446 MW of pumped hydro storage systems planned during the same period.

GUVNL aims to use the BESS for “on-demand” energy storage, which will help state distribution companies manage energy during peak and off-peak hours. The selected projects will connect to the state grid and provide energy storage services according to GUVNL’s requirements. The projects will be technology-agnostic, meaning that any type of battery storage technology that meets the specified criteria can be used.

The selection process will include e-bidding followed by an e-Reverse Auction. The minimum bid size is set at 100 MWh, with projects required to be in multiples of 50 MW/100 MWh. Successful bidders will have the option to take up additional capacity under the Green Shoe option, provided they match the lowest bid rates (L1) and accept the additional capacity within a week. The right to choose a substation location will be given based on the bidders’ ranking.

The projects will be established near substations of the State Transmission Utility (STU) network, with land provided on a Right-of-Use (ROU) basis by the Gujarat Energy Transmission Corporation (GETCO). The land will be leased at a nominal annual charge of ₹1 per plot. Developers will have 60 days from the effective date of the BESPA to finalize the ROU agreement. Any delays in land allocation will lead to an extension of the financial closure and commissioning deadlines.

The primary objective of these projects is to provide GUVNL with a reliable energy storage facility for charging and discharging on demand. Developers are required to ensure that their BESS meets the performance criteria outlined in the RfS and BESPA. The projects are expected to significantly contribute to Gujarat’s energy infrastructure, enhancing grid stability and ensuring efficient energy management during varying demand periods.