The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs for 1665 MW/3330 MWh of standalone Battery Energy Storage Systems (BESS) in Gujarat. The decision follows a petition filed by Gujarat Urja Vikas Nigam Limited (GUVNL), which conducted a global competitive bidding process under Phase VII of its energy storage program.
The procurement has been planned to help the state’s distribution companies meet their Energy Storage Obligations (ESO). As per state regulations, the ESO target will increase every year and is expected to reach 4 percent of total energy consumption by the financial year 2029-30. To support the projects financially, the government has allowed Viability Gap Funding (VGF) of up to ₹18 lakh per MWh. This funding will be provided through the Power System Development Fund (PSDF).
The bidding process concluded with an e-reverse auction held in November 2025. A total of 22 bidders participated in the process. After technical evaluation and financial scrutiny, nine companies were selected as successful bidders. The selected companies quoted tariffs within 2 percent of the lowest discovered rate, as required under the tender conditions. The final discovered monthly storage tariffs ranged between ₹1,85,390 and ₹1,89,000 per MW.
Among the successful bidders, Sun Drops Energia Private Limited secured one of the largest capacities at 445 MW/890 MWh. Ultimate Flexipack Limited also secured a major share with 450 MW/900 MWh. Other selected companies include Engie Energy India, Samavist Energy Solutions, and Stockwell Solar Services. These companies will now be responsible for arranging land and building the required transmission infrastructure. They will connect their projects to the state grid through identified substations.
GERC said it was satisfied with the transparency and competitiveness of the bidding process. The Commission has directed GUVNL to sign Battery Energy Storage Purchase Agreements (BESPA) with the selected developers at the approved tariffs.
The order also includes important technical and safety conditions. Developers must ensure that the Energy Management System (EMS) software is developed within India. They are not allowed to use refurbished battery cells in the projects. All systems must follow national and international safety standards. The projects must also comply with cybersecurity guidelines issued by the Central Electricity Authority.
The large-scale deployment of battery storage systems is expected to improve grid stability in Gujarat. As the state continues to expand solar and wind power capacity, energy storage will help manage fluctuations and ensure reliable power supply to consumers.
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