SESI 2024: GUVNL got the best tariffs for battery energy storage

Speaking at the 4th edition of Stationary Energy Storage India (SESI) international conference at New Delhi today, H.N. Shah, General Manager (RE), Gujarat Urja Vikas Nigam Ltd (GUVNL) acknowledged the emerging traction for battery energy storage in India, may it be standalone BESS or RE-plus-storage route. 

"We started with 2 bids in 2022 including a standalone and RE storage. However, we couldn't tap both of them. After several dialogues with the developers, we then reduced our bid capacity. Now, the RE with ESS bid is on. Sensing the current market trends, we have launched the bid", he noted. 

"We were fortunate to get one of the best prices for the 250 MW/ 500 MWh standalone BESS in the state", he said, referring to the conclusion of the tender early this month at a tariff of ₹4.49 lakh per MW per month, which was about 58 percent lower than ₹10.8 lakh/ MW/ month tariff discovered in SECI's 500 MW/1000 MWh auction in 2022.

It is to be noted that GUVNL's aforementioned standalone battery storage auction saw participation from as many as eight players, including private companies and government utilities. Gensol Engineering and IndiGrid 2 Ltd were declared as the winners of the auction. 

GUVNL will enter into battery energy storage purchase agreement with the successful bidders, who will have to install BESS totaling 500 MWh (250 MW x 2 hours) in the state. The projects are developed under build-own-operate (BOO) model, with the primary aim of making the storage facility available to the state utility for charging/ discharging on an "on demand" basis. 

A couple of days ago, GUVNL has also launched the third phase of its energy storage tender. Deadline for bid submission is declared as 22nd April 2024, with the opening of bids scheduled to take place on 1st of May. 

At the conference, H.N. Shah also spoke on various initiatives taken by the Gujarat state government to fast-track the energy transition, in which "ESS are a big part". "Our RE policy is very comprehensive. It has us a lot in devising our RE and storage tenders, and is a game changer for the developers, even for captive and third party project developers", he added.

For full coverage of the conference, visit indiaesa.info.