The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs for 1,665 MW/3,330 MWh of standalone Battery Energy Storage Systems (BESS) in Gujarat. The approval 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 programme.
The procurement is aimed at enabling Gujarat’s distribution companies to meet their Energy Storage Obligations (ESO). As per state regulations, the ESO target will progressively increase and is expected to reach 4% of total energy consumption by FY 2029–30. To enhance project viability, the government has approved Viability Gap Funding (VGF) of up to ₹18 lakh per MWh, to be disbursed through the Power System Development Fund (PSDF).
The bidding process concluded with an e-reverse auction in November 2025, drawing participation from 22 bidders. Following technical and financial evaluation, nine companies emerged as successful bidders. As per tender conditions, selected bidders quoted tariffs within 2% of the lowest discovered rate. The final monthly storage tariffs ranged between ₹1,85,390 and ₹1,89,000 per MW.
Among the selected developers, Sun Drops Energia Private Limited secured 445 MW/890 MWh, while Ultimate Flexipack Limited was awarded 450 MW/900 MWh. Other successful bidders include Engie Energy India, Samavist Energy Solutions, and Stockwell Solar Services. These companies will be responsible for land acquisition and development of the required transmission infrastructure, with grid connectivity planned through identified substations.
GERC stated that it was satisfied with the transparency and competitiveness of the bidding process and has directed GUVNL to execute Battery Energy Storage Purchase Agreements (BESPA) with the selected developers at the approved tariffs.
The order also outlines key technical and compliance requirements. Developers must ensure that the Energy Management System (EMS) software is developed within India, and the use of refurbished battery cells is prohibited. All systems must adhere to national and international safety standards and comply with cybersecurity guidelines issued by the Central Electricity Authority.
The large-scale deployment of standalone BESS is expected to strengthen grid stability in Gujarat, particularly as the state continues expanding its solar and wind energy capacity. The storage systems will help manage generation variability and support reliable power supply across the state.
