GUVNL’s 400 MW/800 MWh BESS Project Awarded At Rs 2.26/KW

Kintech, H.G., Bhilwara, & Advait Secure GUVNL's 400 MW/800 MWh BESS Project

Gujarat Urja Vikas Nigam Limited (GUVNL) has announced Kintech Synergy Private Limited, H.G. Infra Engineering, Bhilwara Energy, and Kintech, H.G., Bhilwara, & Advait Secure GUVNL’s 400 MW/800 MWh BESS Project Infratech as the successful bidders for its Battery Energy Storage System (BESS) project (Phase-IV). GUVNL released a tender for this project in September 2024 and declared the result within two months. 

The Gujarat-based discom allocated a 100 MW project to Kintech Synergy and Bhilwara Energy at a quoted value of ₹1.15 lakh/MW/month and ₹2.26 lakh/MW/month, respectively. It allocated a 250 MW project to H.G. Infra at ₹2.26 lakh/MW/month and 50 MW to Advit Infratech at ₹22.60 lakh/MW/month. This marks a significant reduction in the BESS tariff, with the lowest bid being ₹2.26 lakh/MW/month, setting a new benchmark for BESS projects in India.

The 30% Viability Gap Funding (VGF) project also included an extended tariff structure for states with high solar penetration. The tender offered a 5% discount compared to the initial price discovered for similar projects under VGF, as offered by NVVN at ₹2.37 lakh/MW/month. This tender is noteworthy for reducing the tariff by 40% compared to the last tender offered at ₹3.72 lakh/MW/month, which did not include VGF support.

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As per the original tender,  the total capacity offered and the project for selection of BESS projects is for a total capacity of 800 MWh. The tender further specified, “The minimum bid size shall be 100 MWh, i.e., 50 MW x 2 hours, and in multiples of 50 MW/100 MWh. For every 100 MW/200 MWh BESS project, only 11,000 sq. m of land will be allotted to the BESSD.”

To develop the project, the GUVNL tender mentioned, that an additional capacity of 400 MW/800 MWh could be allocated under the project. To develop this project, GETCO can prove land can be provided on a right-of-use basis to the developer at an annual lease charge of Rs 1 per plot per year. 

GUVNL Previous BESS Tender Result: A Brief Comparison

It released its first BESS tender in August 2022. It later awarded Phase III GUVNL BESS tender to Gujarat-based Gensol Engineering. Under phase III. GUVNL sought bids for the 250 MW/500 MWh BESS Project in June this year and later awarded the tender at the tariff rate of Rs. 372,978/MW/Month.

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Whereas, GUVNL’s phase II tender allotted the BESS project to Gensol Engineering and IndiGrid 2 (IndiGrid).  Gensol secured 70 MW/140 MWh, quoting ₹448,996/MW/month, and IndiGrid got the remaining 180 MW/360 MWh, quoting Rs. 449,996/MW/month.