The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs ranging from ₹210,000 (~$2,179.66)/MW/month to ₹212,000 (~$2,200.42)/MW/month for Gujarat Urja Vikas Nigam’s (GUVNL) procurement of 335 MW/670 MWh energy storage capacity.

This capacity was the unawarded portion of a tender for 2,000 MW/4,000 MWh of standalone storage projects in the state, with 1,665 MW/3,350 MWh awarded earlier.

Background

In July 2025, GUVNL issued a Phase VII tender for 2,000 MW/4,000 MWh standalone storage projects in Gujarat. It awarded 1,665 MW/3,350 MWh to nine bidders, leaving a balance capacity of 335 MW/670 MWh. The tariffs for the originally awarded capacity were approved by the GERC.

GUVNL issued a Phase VIII tender in December 2025 for the balance capacity. GUVNL also informed the Commission about the tender.

In February 2026, the tender received bids from six bidders. GUVNL selected three bidders for the tendered capacity under the L1 +2% bucket-filling method.

Advait Energy Transitions secured 150 MW/300 MWh, Equentia Natural Resources 65 MW/130 MWh, and Sun Drops Energia 120 MW/240 MWh at tariffs of ₹210,000 (~$2,179.66)/MW/month, ₹211,999 (~$2,200.41)/MW/month, and ₹212,000 (~$2,200.42)/MW/month.

GUVNL sent letters of intent to the successful bidders, which were accepted in April.

It approached GERC to approve the discovered tariffs.

GUVNL submitted that its bidding process was competitive and transparent.

It informed the Commission that the storage projects would receive viability gap funding of ₹1.8 million (~$18,682.81)/MWh for the tendered capacity of 335 MW/670 MWh, to be disbursed in tranches.

GUVNL said the discovered tariffs were higher than in some states as the successful bidders must arrange land, build transmission lines to Gujarat Energy Transmission Corporation substations, address right-of-way issues, and create grid connectivity infrastructure at 66 kV to 220 kV voltage levels.

GUVNL submitted that the approved capacity was necessary to meet its renewable purchase and energy storage obligations, as well as Gujarat’s grid stability needs. It also submitted that storage capacity was needed to support the integration of renewable energy and to stabilize intermittent renewable generation.

Commission’s Analysis

The Commission acknowledged that GUVNL needed the tendered storage capacity to meet its renewable purchase and energy storage obligations and support grid stability.

It noted that GUVNL’s tender was competitive and transparent.

GERC accepted GUVNL’s explanations about the higher discovered tariffs.

Approving the discovered tariffs, the Commission directed GUVNL to sign battery energy storage purchase agreements with the successful bidders, submit the executed agreements with a compliance affidavit, and disclose the bidders’ names, tariffs, and component-wise tariff breakup on its website for 30 days after signing the agreements.

Recently, GERC allowed GUVNL’s request to modify the bid documents and the draft power purchase agreement for procuring firm and dispatchable renewable energy with energy storage.

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