The Gujarat Electricity Regulatory Commission (GERC) has approved the tariffs discovered through competitive bidding for 450 MW / 900 MWh of standalone battery energy storage system (BESS) projects in Gujarat. The approval covers capacities allocated to NLC India Renewables Limited and Sun Drops Energia Limited under Gujarat Urja Vikas Nigam Limited’s (GUVNL) Phase-IX battery storage procurement programme.
GUVNL had approached the Commission under Sections 63 and 86(1)(b) of the Electricity Act, 2003, seeking adoption of the tariffs discovered during the bidding process. The procurement was initiated after a developer selected under the earlier Phase-VII tender failed to execute the required Battery Energy Storage Purchase Agreement (BESPA) for 900 MWh of storage 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) under the Power System Development Fund (PSDF), which aims to facilitate battery storage deployment.
Competitive Bidding Determines Project Tariffs
The tender attracted 11 online bids, with 10 bidders meeting the technical and financial qualification criteria. An electronic reverse auction was subsequently conducted on August 11, 2026, involving nine eligible bidders.
The final project capacities were allocated using a bucket-filling approach based on the lowest discovered tariff, or L1 tariff, with a 2% margin.
Under the allocation:
NLC India Renewables Limited: 275 MW / 550 MWh at a monthly storage tariff of ₹231,989 per MW.
Sun Drops Energia Limited: 175 MW / 350 MWh at a monthly storage tariff of ₹231,990 per MW.
Both developers submitted affidavits before GERC confirming their acceptance of the discovered tariffs and stating that they had no objections to their adoption.
After reviewing the procurement process and submissions from the concerned parties, the Commission approved the tariffs for both developers under the provisions of the Electricity Act, 2003.
BESS Projects to Support Gujarat’s Renewable Energy Integration
GUVNL stated that the proposed battery storage projects will help Gujarat meet its Energy Storage Obligations (ESO) and Renewable Purchase Obligations (RPO). The installations are also expected to improve grid stability, support electricity balancing and manage fluctuations associated with renewable energy generation.
Standalone BESS infrastructure is increasingly important for integrating variable renewable energy sources into the electricity grid by enabling energy storage and supporting power availability during periods of demand.
GERC Directs Execution of Storage Agreements
As part of its order, GERC directed GUVNL to execute BESPAs with the successful developers within the stipulated timeframe. The agreements must include appropriate provisions under the Electricity (Late Payment Surcharge) Rules.
GUVNL has also been instructed 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, the regulatory process for the 450 MW / 900 MWh standalone battery storage projects has been completed, paving the way for their implementation in Gujarat.
Electrify your feed! Click here to join our Whatsapp group and to get the latest updates, expert insights, and innovations driving India’s energy storage revolution.
