Gujarat Urja Vikas Nigam Limited (GUVNL) recently filed a petition before the Gujarat Electricity Regulatory Commission (GERC) to seek approval for the adoption of tariffs discovered under a competitive bidding process for battery energy storage systems (BESS) in the state. This initiative is part of the state’s broader energy reform efforts, aligning with the guidelines laid out by the Central Government under the Electricity Act, 2003. GUVNL initiated this under the Request for Selection (RfS) dated 16th March 2024 for the procurement of 250 MW/500 MWh standalone BESS, along with a greenshoe option for an additional 250 MW/500 MWh.

The petition, filed under Section 63 read with Section 86(1)(b) of the Electricity Act, seeks the Commission’s approval to adopt the storage tariffs that were discovered through this transparent global competitive bidding process.

According to the Electricity Act, the regulatory commission is mandated to adopt the tariff discovered through transparent bidding if conducted as per guidelines issued by the Central Government. GUVNL in its plea mentioned that this bidding process has been done following these guidelines and that the discovered tariffs should now be adopted by the Commission without further delays. The petition also includes a request for the Commission to condone any inadvertent omissions or errors and to allow future submissions or modifications to the petition as needed.

The case is rooted in the larger power sector reform efforts that began with the Gujarat Electricity Industry (Reorganization and Regulation) Act, 2003. This reform led to the unbundling of the erstwhile Gujarat Electricity Board into multiple functional entities, including those for generation, transmission, and distribution. GUVNL has since taken up the responsibility for bulk power procurement and supply in Gujarat.

The current initiative for setting up standalone battery storage systems is a step towards modernizing the grid and supporting renewable energy integration in Gujarat. By implementing large-scale battery systems, the state aims to ensure grid stability, manage peak loads, and make better use of intermittent renewable power like solar and wind. These BESS projects are expected to play a crucial role in enhancing energy reliability and reducing dependency on fossil fuels.

The Commission acknowledged that the petition falls within its jurisdiction and is compliant with the powers vested in it under the Electricity Act and relevant regulations. It also affirmed the legitimacy of the bidding process and the importance of adopting discovered tariffs to avoid unnecessary delays in project implementation.

The decision of GERC in this matter will be a significant one, especially for future energy storage procurements not just in Gujarat, but also across India. The move is being seen as a step in the right direction toward energy storage readiness and reflects Gujarat’s proactive approach to embracing new energy technologies.

With growing demand and an increasing share of renewables in the power mix, timely regulatory approvals and clear frameworks like these are essential. Stakeholders in the renewable energy sector are closely watching this case, as it could set a precedent for upcoming tenders and similar petitions in other states.