The Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a Request for Selection (RfS) document for setting up 500 MW/1000 MWh Standalone Battery Energy Storage Systems (BESS) under Phase-VI of Tariff-Based Competitive Bidding. The total storage capacity will be 1,000 MWh, which will consist of 500 MW at two hours of energy storage. The bidders will need to submit an Earnest Money Deposit (EMD) of ₹5,00,000 per MW and a Performance Bank Guarantee (PBG) of ₹12,50,000 per MW.
The bidding process will be conducted through a Single Stage, Two-Envelope competitive bidding procedure. Bidders are required to submit their queries by 3rd February 2025, with a pre-bid meeting scheduled on 6th February 2025. The objective of the project is to integrate battery energy storage systems into the grid to ensure the availability of renewable energy during peak and off-peak hours.
The Central Electricity Authority (CEA) has recognized BESS as a key solution for ensuring grid stability with increasing renewable energy adoption. BESS systems provide the necessary flexibility in generation and resource adequacy. They also help in better utilization of transmission networks and reduce infrastructure needs. The CEA’s study predicts that by 2027-28, a battery energy storage capacity of 8,680 MW/34,720 MWh will be added to India’s installed capacity.
GUVNL has planned for the addition of energy storage systems as part of its green energy transition. The energy storage projects will be developed in Gujarat to support the state’s grid and its renewable energy initiatives. The total projected storage requirement for GUVNL up to 2031-32 is estimated to be 10,999 MW / 55,000 MWh under a shifted agricultural load scenario. Bidders must design the BESS in such a way that it is capable of charging and discharging at a C-rate of 0.5 and provide flexibility in charging/discharging in groups ranging from 50 MW/100 MWh to 100 MW/200 MWh.
The selected bidders will need to ensure the interconnection of the BESS with the state transmission network. Bidders will also be responsible for setting up the infrastructure for the auxiliary power load of the BESS. The system will be charged by drawing power from the Gujarat Energy Transmission Corporation Limited (GETCO), and the power will be injected into the GETCO network based on dispatch instructions from the State Load Dispatch Center (SLDC) in coordination with GUVNL.
The e-bidding process will be followed by an e-Reverse Auction, with a minimum bid size of 100 MWh. Successful bidders will be required to enter into a Battery Energy Storage Purchase Agreement (BESPA) with GUVNL. The contract will specify the terms and conditions for providing the energy storage facility to GUVNL, including performance criteria, operational requirements, and financial commitments.
The project commissioning timeline includes a scheduled commissioning date within 18 months for up to 250 MW BESS capacity and 24 months for projects exceeding 250 MW. In case of delays, liquidated damages will apply. Once the PBG is verified, the EMD amount will be returned to the successful bidders. The final agreement will be executed after approval from the Gujarat Electricity Regulatory Commission (GERC) for the adoption of the tariff.
This initiative will play a crucial role in meeting Gujarat’s renewable energy goals, contributing to grid stability, and providing flexible storage solutions to balance energy supply and demand.
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