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GERC Approves Tariff for 500 MW BESS Amid Concerns Over GUVNL's Compliance

The Gujarat Electricity Regulatory Commission (GERC) has approved the tariff for 500 MW/1,000 MWh standalone battery energy storage systems (BESS) under GUVNL’s Phase IV auction, with tariffs ranging from Rs225,985 to Rs226,000 per MW/month. The auction marked a significant development in India’s storage sector, with discovered tariffs 39% lower than previous BESS tenders—indicating increased competitiveness and price efficiency.

The successful bidders include H.G. Infra Engineering (250 MW), Kintech Synergy and Bhilwara Energy (100 MW each), and Advait Infratech (50 MW). All participants accepted the tariffs without objection. GUVNL will now enter into Battery Energy Storage Purchase Agreements (BESPAs) with these firms, as directed by the Commission.

Despite approving the tariffs, GERC criticized GUVNL for delays in submitting detailed technical justifications regarding substation selection and safety compliance. While GUVNL cited technical feasibility, its failure to furnish timely documentation was flagged as a serious lapse.

To maintain momentum in meeting energy storage obligations, the Commission allowed the tariff adoption but warned GUVNL of potential escalation to higher authorities for future non-compliance. It also mandated adherence to Late Payment Surcharge Rules, 2022, and transparent public disclosure of tariff details.