GUVNL Completes 2000 MW/4000 MWh BESS Auction With Tariffs Starting At ₹1.85 Lakh per MW per Month

Gujarat Urja Vikas Nigam Ltd. has completed the auction process for its 2000 MW/4,000 MWh standalone battery energy storage project in Gujarat, marking a major step forward for India’s storage sector. The auction was conducted through a tariff-based competitive bidding process and received strong participation from developers, showing the rising interest in battery energy storage across the country. These storage systems are being developed mainly to support on-demand usage, helping balance peak and off-peak power requirements in the state.

The lowest tariff discovered in the auction was ₹1.8539 lakh per MW per month, while the highest winning tariff reached ₹1.89 lakh per MW per month. A total of nine winners emerged from the bidding. Sun Drops Energia, also known as KP Green, quoted the lowest tariff and became the L1 bidder. Ultimate Flexipack secured the largest capacity by winning 450 MW/900 MWh at a tariff of ₹1.89 lakh per MW per month. Engie Energy India quoted a tariff of ₹1.87 lakh per MW per month for a 280 MW/560 MWh capacity, making it one of the significant winners. MECPOWER Solutions won 65 MW/130 MWh with a tariff of ₹1.87994 lakh per MW per month.

Other winners include Samavist Energy Solutions, which quoted 100 MW/200 MWh, and Stockwell Solar Services, which secured 130 MW/260 MWh. Solar91 Cleantech, Viviana Power Tech, and Rajesh Power Services each quoted 65 MW/130 MWh, adding to the diverse list of developers participating in the project.

GUVNL had issued the tender in July 2025. The selected developers must complete the project within 18 months from the effective date of the BESPA. A maximum grace period of nine months is allowed, though it comes with liquidated damages. Any further delay could lead to full forfeiture of the performance bank guarantee and termination of the agreement for the uncommissioned part of the capacity.

The project will be supported by viability gap funding from the Power System Development Fund. Under this mechanism, developers are eligible to receive up to ₹18 lakh per MWh. The funding will be released in three stages: 20 percent at financial closure, 50 percent at commissioning, and the final 30 percent one year after commissioning. Developers must submit certified project cost details and performance guarantees to receive the VGF support.