The Gujarat BESS procurement programme has moved forward, with the Gujarat Electricity Regulatory Commission (GERC) adopting the tariffs discovered through competitive bidding for 450 MW / 900 MWh of standalone battery energy storage capacity. Under Gujarat Urja Vikas Nigam Limited’s (GUVNL) Phase-IX initiative, NLC India Renewables Limited has been allocated 275 MW / 550 MWh, while Sun Drops Energia Limited has secured 175 MW / 350 MWh.
The Commission issued its order on 28 October 2026 in Petition No. 2732 of 2026, approving the storage rates discovered through a competitive bidding process followed by an electronic reverse auction. The procurement is being undertaken with Viability Gap Funding (VGF) support through the Power System Development Fund (PSDF).
Also Read: India’s EV Charging Opportunity: Where Can Investors Find the Next Big Business?
NLC India and Sun Drops Secure 450 MW / 900 MWh BESS Capacity
Under the final allocation approved by GERC, NLC India Renewables Limited has secured 275 MW / 550 MWh of standalone battery storage capacity at a discovered monthly storage rate of ₹2,31,989 per MW.
Sun Drops Energia Limited has been allocated the remaining 175 MW / 350 MWh at a monthly storage rate of ₹2,31,990 per MW.
The combined allocation accounts for the entire tendered capacity of 450 MW / 900 MWh.
The two-hour storage configuration means that the combined facilities are designed to provide 450 MW of power for two hours when fully charged and available.
How the GUVNL Phase-IX BESS Tender Was Conducted
GUVNL issued the Request for Selection (RfS) for the procurement of 450 MW / 900 MWh of standalone battery energy storage capacity on 22nd June 2026. The tender followed a tariff-based global competitive bidding process, with an electronic reverse auction conducted on 11th August 2026.
According to the order, 10 bidders met the technical and financial qualification requirements, while nine were shortlisted to participate in the e-reverse auction.
Following the auction, NLC India Renewables and Sun Drops Energia were identified as successful bidders. The allocation was carried out using the bucket-filling approach under Clause 44.2 of the RfS, applying the L1 tariff plus 2% criteria to determine the successful bidders for the total tendered capacity.
Why Gujarat Is Expanding Battery Energy Storage Capacity
Battery Energy Storage Systems play an important role in supporting the integration of renewable energy into the electricity grid. Solar and wind power generation can fluctuate depending on weather conditions and the time of day. BESS facilities can store electricity when generation is available and release it when required, helping manage variations in supply and demand.
The procurement is also relevant to Gujarat’s Energy Storage Obligation (ESO) trajectory, which sets out progressively increasing energy storage requirements over the coming years.
The ESO trajectory specified in the order is as follows:
The increasing targets underline the importance of developing energy storage infrastructure to support the growing share of renewable energy in the power mix.
What Happens Next After GERC’s Tariff Approval?
With the tariff adoption approved, GUVNL has been permitted to execute Battery Energy Storage Purchase Agreements (BESPAs) with NLC India Renewables and Sun Drops Energia for their respective allocated capacities.
GERC has also directed GUVNL to submit copies of the executed agreements along with an affidavit confirming that the provisions of the agreements comply with the Electricity Act, applicable rules, bidding guidelines and state-approved deviations.
Following the execution of the BESPAs, GUVNL must publicly disclose the names of the successful bidders, the adopted tariffs and their component-wise breakup for a period of 30 days.
The execution of these agreements will mark the next step towards taking the 450 MW / 900 MWh standalone battery storage procurement programme forward.
A Step Towards Strengthening Gujarat’s Energy Storage Infrastructure
The adoption of tariffs for the 450 MW / 900 MWh BESS procurement marks an important development in Gujarat’s efforts to expand its energy storage infrastructure. With NLC India Renewables and Sun Drops Energia identified as successful bidders, the procurement moves towards the agreement-execution stage.
As renewable energy capacity continues to grow, battery storage projects are expected to play an increasingly important role in improving grid flexibility, managing fluctuations in renewable power generation and supporting reliable electricity supply.
