Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a Request for Selection (RfS) on July 23, 2025, for the procurement of 2,000 MW / 4,000 MWh standalone Battery Energy Storage Systems (BESS) projects across Gujarat. The projects will be developed under a tariff-based competitive bidding process and will be supported with Viability Gap Funding (VGF) from the Power System Development Fund (PSDF). These energy storage systems are intended for “on-demand” usage to balance peak and off-peak power demand.
The bidding process will follow a single-stage, two-envelope e-tendering format. Developers must build, own, and operate the BESS assets. GUVNL will enter into a Battery Energy Storage Purchase Agreement (BESPA) with selected bidders. The document outlines that the systems must be capable of two full charge-discharge cycles daily, and meet a minimum annual system availability of 95%. Bidders are allowed to design their systems with a round-trip efficiency of at least 85%. Liquidated damages will apply if performance metrics, including availability and efficiency, are not met.
The total offered project capacity is 4,000 MWh, and the minimum bid size is 100 MWh (i.e., 50 MW x 2 hours), with capacity increments in multiples of 50 MW. Projects may be set up at multiple substations within Gujarat’s intra-state transmission system. GUVNL will supply the required power to charge these battery systems.
The last date for submission of queries is August 8, 2025, by 5:00 PM, and a pre-bid meeting will be held via video conference on August 13, 2025, at 12:00 PM. Bids must be submitted online through the ISN-ETS portal in accordance with timelines and formats specified in the RfS.
Interested bidders must pay a non-refundable document fee of ₹29,500 including GST, and a document processing fee of ₹15 lakh plus 18% GST per total project capacity. The Earnest Money Deposit (EMD) is fixed at ₹5 lakh per MW, to be submitted via bank guarantee. Additionally, successful bidders must submit a Performance Bank Guarantee (PBG) of ₹12.5 lakh per MW prior to BESPA signing.
The project completion period is 18 months from the effective date of the BESPA, with a maximum grace period of 9 months allowed with liquidated damages. Delays beyond this could lead to full PBG forfeiture and termination of the BESPA for the uncommissioned capacity.
Under the VGF support mechanism, developers can receive up to ₹18 lakh per MWh. The grant will be disbursed in three tranches: 20% at financial closure, 50% upon commissioning (COD), and the remaining 30% after one year of COD. The VGF disbursement will require submission of certified project cost details and performance bank guarantees.
The GUVNL initiative aligns with India’s larger renewable energy goals and targets, especially in enhancing grid flexibility and ensuring energy availability during demand peaks. The RfS document reflects GUVNL’s intent to establish robust, performance-driven battery storage solutions in the state.
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