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Gujarat, India tenders for 1,500MW/1,000MWh battery energy storage project

Gujarat state energy developer GUVNL is bidding for a 500MW/1,000MWh standalone battery energy storage system (BESS).

GUVNL released a tender document for the pilot project on August 10. GUVNL is the holding company of India's state-owned Transmission and Distribution Corporation (DISCOM).

September 13, 2022

GUVNL said the projects will be used on demand according to the requirements of India's state-owned Transmission and Distribution Corporation (DISCOM).

While the company did not detail specific requirements for the battery storage system in its tender, it appears to require a discharge duration of two hours, which would increase the ability to provide load-shifting services. The tender calls for the battery storage system to be available for two full charge-discharge cycles per day with at least 95% availability.

GUVNL will sign a battery energy storage system purchase agreement (BESPA) with the winning bidder, and the winning bidder will be required to build a battery energy storage project in a self-built and self-operated model.

Energy storage projects under development or construction must be eligible, excluding projects that have already been commissioned for deployment, and energy storage projects must be subject to all off-takes as required by the Tender/State-owned Transmission and Distribution Corporation of India (DISCOM).

The battery energy storage system must be of a minimum size of 40MW/80MWh and needs to be deployed near a substation owned by Gujarat and will be leased by the transmission system operator (owned by GUVNL) Gujarat Energy Transmission Company (GETCO).

According to industry media reports, Gujarat's latest tender was a tender for the deployment of 500MW of renewable energy generation facilities and energy storage systems three months ago.

In addition to government-led initiatives, the Indian grid has also added a significant amount of energy storage through central government tenders. Two of them are from Solar Energy Corporation of India (SECI) and the other is from India's state-owned power group NTPC, which will add 1GW/4GWh of energy storage systems.

Analysts at India's Institute for Energy Economics and Financial Analysis (IEEFA) described such tenders as the beginning of an "energy storage revolution" in the country.

Recently, the Indian government has enacted a legislation which means that the percentage of total energy consumed from renewable sources through the deployment of energy storage systems is set at 1% in the 2023-2024 time frame and rises in 2029-2030 to 4%. This increases the share of electricity generated from existing renewable sources.

At the same time as the legislation was released, an Indian government think tank predicted in July that by 2030, India’s demand for battery energy storage system deployment will reach about 180GWh.

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