Gujarat Accelerates Clean Energy Transition with 2000 MW/4000 MWh BESS Tender

GUVNL launches India’s largest grid-scale battery storage bid under Phase VII, setting a national benchmark for energy security and renewables integration

In a bold stride towards grid modernization and energy resilience, Gujarat Urja Vikas Nigam Limited (GUVNL) has invited bids for the procurement of 2000 MW / 4000 MWh of standalone Battery Energy Storage Systems (BESS) under its Phase VII tender, released on 23rd July 2025. This marks the largest single-state BESS tender in India to date, showcasing Gujarat’s leadership in adopting advanced energy storage technologies at scale.

The tender is being implemented under a Tariff-Based Competitive Bidding (TBCB) framework with Viability Gap Funding (VGF) support from the Power System Development Fund (PSDF). The initiative is strategically aligned with India’s national goal of reaching 500 GW of non-fossil fuel capacity by 2030 and decarbonizing the power sector through flexible dispatch solutions.

Key Technical Features

• Project Size: 2000 MW, 2-hour storage = 4000 MWh

• Bid Size: Minimum 50 MW / 100 MWh per project; multiples allowed

• Project Model: Build-Own-Operate (BOO)

• Availability: ≥95% system uptime annually

• Round-trip Efficiency (RtE): Minimum 85%

• Cycle Life: Daily 2 full cycles; 8400–8700 cycles over project life

• Degradation: 2.5% annually; 70% dispatchable capacity in Year 12

Bidders must ensure State Transmission Utility (STU) connectivity, meet net worth thresholds of ₹74 lakh/MW, and adhere to a strict 18-month commissioning deadline post-BESPA effectiveness.

The competitive selection will involve reverse e-auctioning, with evaluation based on the lowest tariff plus VGF sought. Notably, early commissioning is incentivized with the option to sell power on the open market before the Scheduled Commercial Operation Date (SCD), offering developers financial flexibility.

Commercial & Revenue Structure

GUVNL will compensate developers via fixed monthly capacity charges, while supplying power required for BESS charging. Developers will benefit from:

• VGF support of up to ₹18 lakh/MWh (disbursed over financial closure, commissioning, and first-year operation)

• GST pass-through on storage services

• Access to accelerated depreciation and other fiscal incentives

Key dates for the tender process are:

• Pre-bid queries: 8th August 2025

• Pre-bid meeting: 13th August 2025

• Bid submission deadline: 11th September 2025

Strategic Locations

The 12 substation sites earmarked for the project span across Gujarat and offer integration capacities from 65 MW to 450 MW, including prominent nodes like Charanka, Bhogat, Shapar, and Wagra. Developers are responsible for land acquisition, infrastructure, EPC, and connectivity from the STU substation.

Significance for India’s Energy Landscape

This mega-tender arrives at a pivotal moment when the Indian grid is grappling with rising renewable energy penetration, diurnal power demand fluctuations, and the need to replace diesel-based peaking plants. BESS will play a crucial role in:

• Stabilizing grid voltage and frequency

• Reducing renewable energy curtailment

• Managing peak demand and time-shifting solar/wind output

• Enhancing system reliability in high RE zones like Gujarat

As of 2025, Gujarat leads several clean energy metrics—boasting over 37 GW of installed RE capacity, and pioneering solar-wind hybrid and Green Energy Corridor infrastructure. The rollout of 2000 MW BESS complements the state’s vision of becoming a net-exporter of green power to national markets.

Market Response and Outlook

Industry leaders including Adani Energy Solutions, Reliance, JSW, and ReNew are expected to actively participate, given their expanding BESS portfolios and earlier bids in SECI’s national tenders. The tender also opens avenues for international battery OEMs and technology integrators to partner with Indian developers.

With this tender, GUVNL not only reaffirms its commitment to future-ready infrastructure, but also sets a replicable model for other DISCOMs and states seeking to unlock the full potential of India’s renewable grid.

By leveraging robust policy backing, innovative commercial design, and a strong developer base, Gujarat's 2000 MW BESS program could well be a watershed in India's journey toward a 21st-century power system.

******

#GUVNL, #BESS, #India, #ESS, #Storage, #RESI, #RESIIndia for more updates follow resiindia.org or email us at resocietyofindia@gmail.com