Gujarat Set to See 1.67 GW of Standalone BESS Projects as GERC Approves Tariffs

Gujarat is poised to become a major hub for battery storage deployment after the Gujarat Electricity Regulatory Commission (GERC) approved tariffs for 1.67 GW / 3,330 MWh standalone energy storage projects following a competitive bidding process conducted by Gujarat Urja Vikas Nigam Limited (GUVNL). This regulatory nod signals strong momentum in deploying utility-scale energy storage to support grid stability and renewable power integration across the state.

Under Phase-VII of GUVNL’s storage tender, the commission reviewed bids for 2,000 MW / 4,000 MWh of BESS capacity and approved tariffs for 1,665 MW (3,330 MWh) awarded to nine successful bidders. The competitive auction, which began on July 23, 2025, attracted 22 bidders, of which 20 were technically qualified, with e-reverse auction tariffs discovered between ₹185,390 and ₹189,000 per MW per month.

Battery energy storage systems play a crucial role in helping Gujarat meet its Energy Storage Obligations (ESO) and Renewable Purchase Obligations (RPO) while managing variability in solar and wind generation. GERC’s order directs GUVNL to sign Battery Energy Storage Purchase Agreements (BESPA) with the winning developers and ensure compliance with regulatory frameworks to strengthen grid reliability. Viability gap funding (VGF) support of up to ₹1.8 million per MWh from the Power System Development Fund has also been earmarked to accelerate project execution.

The approval of tariffs for such a large tranche of BESS capacity underscores Gujarat’s focus on integrating storage into its renewable infrastructure. As the state continues expanding its energy storage ecosystem, developers and utilities are expected to move quickly toward construction and commissioning, paving the way for more resilient, flexible, and renewable-friendly power networks.

Resource: Saur Energy

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