Gujarat Set To Build Its First Long Duration BESS

Gujarat Urja Vikas Nigam Ltd (GUVNL), the state electricity regulatory body, has taken the first step to transition from a battery energy storage project to developing its first Long Duration Energy Storage System (LDES) in Gujarat. It has released a draft tender to select developers for an 800 MW (200 MW x 8 Hrs) battery energy storage system in the state. This storage will provide “on-demand” usage under tariff-based competitive bidding (Phase V). GUVNL has sought bids for the draft tender until 10th November 2024.

GUVNL’s tender aligns with a larger objective to increase the storage component in the energy mix, as per CEA’s report on the identification of storage usage. The Central Electricity Authority (CEA) report, which identifies the business case for storage and its use for associated services, recognized Pumped Hydro Storage Systems (PSP) and Battery Energy Storage Systems (BESS) as commercially deployed solutions for providing the requisite storage capacity. Thus, through its recent tendering, GUVNL comes closer to achieving CEA’s projections for 2022-27 which is add to the 7446 MW of Pumped Hydro Storage System capacity.

GUVNL’s BESS

This project aims to achieve CEA’s projection to add a Battery Energy Storage capacity of 8680 MW/34720 MWh (4-hour storage), to be installed by 2022-27. Using BESS in the energy storage project can provide the necessary support for generation flexibility, as well as ensuring resource adequacy. Moreover, Energy Storage Systems have the potential to enable better utilization of transmission networks and reduce the network infrastructure footprint. Additionally, this project would allow GUVNL to use energy storage on a demand basis to safeguard DISCOM energy needs during peak and off-peak hours. Moreover, as renewables share ramps up in the overall state grid, more large storage projects might even allow for a pause on any curtailment of renewable power, especially during solar hours.

GUVNL has invited proposals to build standalone Battery Energy Storage Systems (BESS) connected with the state grid, for an aggregate storage capacity of 1600 MWh (200 MW x 8 hrs) with one cycle of charging/discharging operation of BESS. Through this project, GUVNL aims to build a 1600 MWh project with a minimum bid size of 400 MWh, i.e., 50 MW x 8 hours, and in multiples of 50 MW / 400 MWh by the Battery Energy Storage System Developer (BESSD). Through this project, the BESSD developer is expected to guarantee a minimum system availability of 95% annually.