Kintech Synergy, H.G Infra Engineering, Bhilwara Energy (LNJ Bhilwara Group) and Advait Infratech have won Gujarat Urja Vikas Nigam’s (GUVNL) Phase IV standalone Battery Energy Storage Systems (BESS) auction.

The project was awarded following the introduction of Viability Gap Funding (VGF) support and an increase in capacity to 500 MW/1000 MWh.

The initial tender was issued for 400 MW/800 MWh with a greenshoe option of 400 MW/800 MWh. It was amended in October 2024.

H.G Infra Engineering secured 250 MW with a quoted tariff of ₹225,985 (~$2670.59)/ MW per month

Kintech Synergy and Bhilwara Energy secured 100 MW each at a tariff of ₹225,985 (~$2670.59)/ MW per month and ₹225,993 (~$2670.68)/ MW per month respectively.

Advait Infratech secured 50 MW at a tariff of ₹226,000 (~$2670.76)/ MW per month.

 

Under the revised tender, VGF is capped at ₹2.7 million (~$32,114)/MWh or 30% of the project’s capital cost, whichever is lower. Developers must submit a statutory auditor-certified certificate verifying the capital cost for the allocated project capacity within six months of the Commercial Operation Date (COD).

The VGF will be granted under the state component and allocated separately for each project based on the capacity outlined in the Battery Energy Storage Project Agreement (BESPA).

Disbursements will be milestone-based, divided into five tranches:

• 10% at financial closure, upon submission of a bank guarantee
• 45% at COD
• 15% at the end of the first year after COD
• 15% at the end of the second year
• 15% at the end of the third year

Each milestone must be certified by the Central Electricity Authority before GUVNL releases funds, which will only occur after receiving them from the Government of India and the developer providing a bank guarantee of ₹1.25 million (~$14,867)/MW/project.

If the developer fails to commission the project on time,  GUVNL can recover the disbursed VGF with interest at SBI-MCLR (1 Year) plus 5% from the disbursement date. For reduced capacity, recovery will be proportional.

If the BESPA is terminated within three years post-COD due to developer-related issues, GUVNL can recover pre-COD VGF disbursements with interest. In case of project transfer or sale, the new owner must issue a fresh bank guarantee.

Recently, the GUVNL had invited bids to purchase power from 500 MW of grid-connected solar power projects (Phase XXV), with a greenshoe option of an additional 500 MW.

In June 2024, Gensol Engineering won GUVNL’s auction to set up pilot projects of 250 MW/500 MWh standalone BESS in Gujarat under tariff-based global competitive bidding (Phase III).