Mumbai,16th March 2024: IndiGrid [BSE: 540565 | NSE: INDIGRID], India’s first and largest listed power sector infrastructure investment trust (InvIT), today announced that it has received Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) to Design, Supply, Test, Install, Commission, Operate and Maintain a 180 MW / 360 MWh Battery Energy Storage System (BESS) in Gujarat.

This project is part of a larger 250 MW / 500 MWh BESS, envisaged by GUVNL, to bolster the overall energy storage capacities of the state and provide renewable energy during both peak and off-peak hours. As per the Ministry of Power circular 23/26/2021 – R&R dated 29th January 2022, Energy Storage Systems (ESS) will be accorded status based on its application and location. Considering that this project will be grid-connected and collocated in GETCO sub-station, it will be classified as part of a transmission system.

IndiGrid emerged as the second lowest bidder in the reverse auction process conducted by GUVNL, winning 180 MW/ 360 MWh by quoting a fixed tariff of INR 449,996 per MW per month which translates to an annual tariff of over INR 97 crore. The project is awarded through tariff-based competitive bidding (TBCB) mechanism and will be developed on a build, own, and operate (“BOO”) basis for a period of 12 years. Further extension of the project is possible on a mutually agreeable basis.

Commenting on the win, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, said, “In India’s journey to achieve 500 GW of renewable capacity by 2030, Battery Energy Storage Systems are emerging as a need of the hour to counter the intermittent nature of renewable sources.

Over the last year, IndiGrid has made investments to strengthen its expertise in developing and managing BESS projects by undertaking pilot projects at our own sites. This is the second BESS win for us in the last 6 months – a great achievement for our entire team and a testament of our capability.

We believe that the BESS landscape in India is slated to witness accelerated growth going forward and IndiGrid is positioned well to participate in this upswing.”