Gujarat Urja Vikas Nigam (GUVNL) has issued a tender to develop a 2,000 MW/4000 MWh standalone Battery Energy Storage System (BESS) project across Gujarat under the build-own-operate model. The project falls under Phase VII of GUVNL’s BESS program.

The proposed BESS installations will be connected to Gujarat Energy Transmission Corporation, including substations at Charanka, Shapar, and Bhogat, among others.

The project will receive viability gap funding (VGF) of ₹1.8 million (~$20,862)/MWh of awarded capacity. The VGF will be disbursed in three tranches: 20% at financial closure, 50% at commercial operation date (COD), and 30% one year post-COD upon certification. Bids must be submitted by September 11, 2025. Bids will be opened on September 17.

Bidders must furnish an earnest money deposit of ₹500,000 (~$5,813.95)/MW, a document fee of ₹29,500 (~$337.21), and a bid processing fee of ₹1.5 million (~$17,441.86) plus 18% GST per quoted project capacity.

Successful bidders must submit a performance bank guarantee (PBG) of ₹1.25 million (~$14,534.88)/MW.

The scope of work includes the design, construction, and operation of the storage systems, including all necessary infrastructure up to the delivery point, as well as transmission line construction. It also includes compliance with metering and dispatch protocols issued by the state load dispatch center and GUVNL.

Selected bidders must ensure a system availability of 95% annually. Round-trip efficiency must be at least 85%. Any value below 70% will result in non-payment and liquidated damages at average power purchase cost rates, while 70% to 84.99% will attract damages on excess losses.

Bids must be submitted for a minimum capacity of 100 MWh (50 MW x 2 hours) and in multiples thereof of this capacity. The entire system must be configured to operate with on-demand storage capability, designed for two full cycles per day.

Bidders must have executed either conventional or renewable energy projects, with at least 1 MW of commissioned capacity for every 1 MW of BESS bid, or 10 MWh of commissioned BESS capacity.

Bidders must have a net worth of ₹7.4 million (~$86,046.51)/MW of quoted capacity, with consortiums required to meet equity contribution in proportion.

The battery energy storage purchase agreement (BESPA) will be signed for a 12-year term from the date of full commissioning. The scheduled commissioning date is set at 18 months from the effective BESPA date, with a provision for an additional nine months under liquidated damages.

The liquidated damages for commissioning delays will be calculated on a pro-rata basis by encashing the PBG of ₹1.25 million (~$14,534.88)/MW, with full forfeiture for delays beyond nine months.

In May this year, GUVNL issued a request for selection for procuring power from 500 MW solar projects on a build, own, operate basis (GUVNL Phase-XXVII).