The Gujarat Electricity Regulatory Commission (GERC) has approved the adoption of tariffs for a major standalone Battery Energy Storage System (BESS) project, marking an important development in Gujarat’s efforts to strengthen grid stability and support the rapid expansion of renewable energy. The order was issued on May 8, 2026, following a competitive bidding process conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) for the procurement of 335 MW/670 MWh of battery energy storage capacity under Phase-VIII of the project.
The initiative has been designed to help Gujarat’s distribution companies meet their Energy Storage Obligation (ESO) and Renewable Purchase Obligation (RPO) targets. With renewable energy generation from solar and wind increasing significantly across the state, the need for efficient storage systems has become more important. Battery energy storage systems are expected to play a crucial role in balancing electricity supply and demand by storing excess power during periods of high renewable generation and supplying it back to the grid during peak demand hours.
To improve the commercial viability of these projects, the Government of India has provided support through Viability Gap Funding (VGF) under the Power System Development Fund (PSDF) scheme, notified by the Ministry of Power. Under this mechanism, project developers are eligible to receive financial assistance of up to ₹18 lakh per MWh. The grant will be released in three stages, including at the time of financial closure, after achieving the commercial operation date (COD), and following one year of successful operation.
The bidding process attracted participation from six major companies operating in the energy and infrastructure sectors. After the technical evaluation, an e-reverse auction was conducted in February 2026 to discover competitive tariffs for the project. The commission noted that the bidding process was carried out transparently and in line with the provisions of Section 63 of the Electricity Act, 2003, which allows tariff adoption through competitive bidding conducted according to government guidelines.
Among the participating firms, Advait Energy Transitions Limited emerged as a significant bidder by quoting a fixed tariff of ₹2,25,000 per MW per month for a storage capacity of 150 MW/300 MWh. Other qualified bidders included Rajesh Power Services Limited, Sun Drops Energia Private Limited, and Equentia Natural Resources DMCC.
The GERC stated that the approval of the project represents a major step toward supporting Gujarat’s clean energy transition and ensuring long-term grid reliability. The selected projects are expected to be commissioned within 18 months. Gujarat’s energy storage requirement is projected to cross 4,500 MW by 2030, highlighting the growing importance of battery storage infrastructure in the state’s future power system. The commission has also directed GUVNL to execute the Battery Energy Storage Purchase Agreements (BESPA) and publicly disclose the final successful bidders and project details to maintain transparency in the procurement process.
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