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 approved capacities have been 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 approached GERC under Sections 63 and 86(1)(b) of the Electricity Act, 2003, seeking approval of the tariffs discovered through 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 tender attracted 11 online bids, of which 10 bidders met the technical and financial qualification criteria. An electronic reverse auction was subsequently conducted on August 11, 2026, with nine eligible bidders participating. The projects are supported through Viability Gap Funding (VGF) under the Power System Development Fund (PSDF).
Under the final allocation, NLC India Renewables Limited secured 275 MW/550 MWh of capacity at a monthly storage tariff of ₹231,989 per MW. Sun Drops Energia Limited received 175 MW/350 MWh at a monthly storage tariff of ₹231,990 per MW. The capacities were allocated through a bucket-filling approach based on the lowest discovered tariff (L1 tariff), with a 2% margin. Both developers submitted affidavits to GERC confirming their acceptance of the discovered tariffs and stating that they had no objections to their adoption.
According to GUVNL, 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 will support the integration of variable renewable energy sources into the electricity grid.
GERC has directed GUVNL to execute Battery Energy Storage Purchase Agreements (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. With the tariff approval, the regulatory process for the 450 MW/900 MWh standalone battery storage projects has been completed, paving the way for their implementation in Gujarat.
