IndiGrid Wins 360 MWh BESS Project In Gujarat Awarded By GUVNL

IndiGrid Wins 360 MWh BESS Project In Gujarat Awarded By GUVNL

Mumbai-based IndiGrid, an Indian power sector infrastructure investment trust (InvIT), recently announced that it has received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL).

IndiGrid received this letter to design, supply, test, install, commission, operate, and maintain a 180 MW / 360 MWh Battery Energy Storage System project (BESS) in Gujarat. This project is part of a larger 250 MW / 500 MWh BESS, envisaged by GUVNL, it aims to bolster the overall energy storage capacities of the state and provide renewable energy during both peak and off-peak hours. As per the Ministry of Power (MoP) circular released on 23rd March 2021 the R&R dated 29th January 2022, Energy Storage Systems (ESS) is expected to be accorded status based on its application and location.

IndiGrid stated, “Considering that this project will be grid-connected and collocated in the Gujarat Energy Transmission Corporation Limited (GETCO) sub-station, it has to be classified as part of the transmission system.” IndiGrid emerged as the second lowest bidder in the reverse auction process conducted by GUVNL. It won 180 MW/ 360 MWh by quoting a fixed tariff of INR 449,996 per MW per month. This translates to an annual tariff of over INR 97 crore.

The project was awarded through tariff-based competitive bidding (TBCB) mechanism and is to be developed on a build, own, and operate (BOO) basis for 12 years. Further extension of the project is possible on a mutually agreeable basis. Commenting on the win, Harsh Shah, Chief Executive Officer (CEO), and whole-time director of IndiGrid, said, “In India’s journey to achieve 500 GW of renewable capacity by 2030, Battery Energy Storage Systems (BESS) are emerging as a need of the hour to counter the intermittent nature of renewable sources. Over the last year, IndiGrid has made investments to strengthen its expertise in developing and managing BESS projects by undertaking pilot projects at our sites. This is the second BESS win for us in the last 6 months – a great achievement for our entire team and a testament to our capability. We believe that the BESS landscape in India is slated to witness accelerated growth going forward and IndiGrid is positioned well to participate in this upswing.”