The Gujarat Electricity Regulatory Commission (GERC) has adopted the tariffs discovered through a competitive bidding process for the development of a 450 MW / 900 MWh standalone Battery Energy Storage System (BESS) in Gujarat. The approval covers projects allocated to NLC India Renewables Limited and Sun Drops Energia Limited under Gujarat Urja Vikas Nigam Limited’s (GUVNL) Phase-IX battery storage procurement initiative.
The petition was filed by GUVNL before the Commission under Sections 63 and 86(1)(b) of the Electricity Act, 2003, seeking approval for the discovered tariffs. The procurement process was initiated after a developer selected under the earlier Phase-VII tender failed to execute the required Battery Energy Storage Purchase Agreement (BESPA) for the 900 MWh capacity.
Following approval from the Ministry of Power, Government of India, GUVNL issued a fresh Request for Selection (RfS) on June 22, 2026, under Phase-IX. The projects are supported through Viability Gap Funding (VGF) provided under the Power System Development Fund (PSDF), aimed at encouraging the deployment of battery storage infrastructure.
The tender received 11 online bids, of which 10 bidders successfully met the technical and financial qualification requirements. Subsequently, an e-reverse auction was conducted on August 11, 2026, with nine eligible bidders participating in the competitive bidding process. The successful capacities were allocated through a bucket-filling approach based on the L1 discovered tariff, with a two percent margin.
Under the final allocation, NLC India Renewables Limited has been awarded 275 MW / 550 MWh of battery storage capacity at a discovered monthly storage rate of ₹231,989 per MW. Sun Drops Energia Limited has secured the remaining 175 MW / 350 MWh capacity at a monthly storage rate of ₹231,990 per MW.
Both successful bidders submitted affidavits before the Commission confirming that they had no objections to the adoption of the discovered tariffs. After examining the bidding process and submissions made by the parties, GERC approved the tariffs for both developers under the provisions of the Electricity Act, 2003.
GUVNL highlighted that the proposed battery storage projects will support Gujarat in meeting its Energy Storage Obligations (ESO) and Renewable Purchase Obligations (RPO). The installations are also expected to strengthen grid stability, improve power balancing and address the variability associated with renewable energy generation.
As part of its directions, GERC has instructed GUVNL to execute the BESPAs with the successful developers within the stipulated timeframe. The agreements must incorporate appropriate provisions under the Electricity (Late Payment Surcharge) Rules. GUVNL has also been directed to submit copies of the executed agreements to the Commission and publish the final tariff structures on its official website to ensure transparency.
With the tariff adoption approved, GERC has disposed of the petition, clearing the way for the implementation of the 450 MW / 900 MWh standalone battery storage projects in Gujarat.
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