Gujarat’s 4 GWh BESS Auction Concludes: Nine Winners Secure Capacity, Tariffs Set New Benchmarks

Gujarat Urja Vikas Nigam Limited (GUVNL) has successfully concluded its 2 GW/4 GWh standalone battery energy storage system (BESS) auction (Phase VII), marking a milestone in India’s energy transition. The auction, floated in July 2025, attracted strong participation, with nine companies emerging as winners and tariffs settling in the range of ₹185,000–₹188,000 per MW per month.

Key Highlights

• Total Capacity Auctioned: 2,000 MW / 4,000 MWh

• Number of Winners: 9 developers

• Lowest Tariff (L1): ₹185,390 (~$2,091.49)/MW/month by Sun Drops Energia (KP Group)

• Viability Gap Funding (VGF): Up to ₹18 lakh/MW to support project economics

Winners and Their Allocations

Company	Capacity (MW/MWh)	Tariff (₹/MW/month)
Ultimate Flexipack	450 MW / 900 MWh	~₹186,000
Sun Drops Energia (KP Group)	445 MW / 890 MWh	₹185,390
ENGIE Energy India	280 MW / 560 MWh	₹187,000
Stockwell Solar Services	130 MW / 260 MWh	~₹186,500
Samavist Energy Solutions	100 MW / 200 MWh	~₹187,500
Mecpower Solutions	65 MW / 130 MWh	₹187,994
Solar91 Cleantech	65 MW / 130 MWh	~₹188,000
Viviana Power Tech	65 MW / 130 MWh	~₹188,000
Rajesh Power Services	65 MW / 130 MWh	~₹188,000

Ultimate Flexipack secured the largest share, while Sun Drops Energia emerged as the lowest bidder (L1), setting the benchmark tariff.

Companies That Did Not Win

While nine firms succeeded, several notable players in India’s renewable energy and storage sector—such as ReNew Power, Adani Green, Techno Electric and Tata Power—were reported to have participated but did not secure allocations in this round. Their absence from the winners’ list highlights the competitive nature of tariff-based bidding and the growing presence of mid-sized developers.

Strategic Significance

• Grid Stability: The 4 GWh storage capacity will help Gujarat DISCOMs manage peak demand and renewable intermittency.

• Policy Push: This auction is part of India’s broader target to achieve 50 GW of BESS by 2030, aligning with national decarbonization goals.

• Market Signal: The tariffs achieved demonstrate declining storage costs, making BESS increasingly viable for DISCOMs.

The spread of winners shows diversification, with both large international firms (ENGIE) and domestic players (KP Group, Ultimate Flexipack) securing projects. Tariff competitiveness clustered tightly between ₹185,000–₹188,000/MW/month, indicating a maturing market with limited room for undercutting. Missed bids by larger incumbents suggest that smaller, agile firms are finding niches in India’s storage sector.

The Gujarat DISCOMs’ 4 GWh BESS auction has set a precedent for India’s energy storage sector. With nine winners securing capacity and tariffs stabilizing at competitive levels, the auction underscores both the commercial viability of BESS and the strategic importance of storage in India’s renewable energy roadmap.

#GUVNL #BESS #Result #India #RESI