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NLC India Renewables Receives LoI from GUVNL for 275 MW/550 MWh BESS Project in Gujarat

NLC India Renewables has received a Letter of Intent from Gujarat Urja Vikas Nigam for a 275 MW/550 MWh standalone BESS project in Gujarat at a tariff of INR 2,31,989/MW/month, following GUVNL’s August 2026 auction.

September 05, 2026. By Mrinmoy Dey

NLC India Renewables (NIRL), a wholly-owned subsidiary of NLC India, has announced that it has received a letter of intent (LoI) from Gujarat Urja Vikas Nigam (GUVNL) for setting up 275 MW/550 MWh standalone battery energy storage systems (BESS) in Gujarat.

The company secured the capacity in GUVNL’s auction to set up 450 MW/900 MWh standalone BESS projects in Gujarat, held in August 2026, at a tariff of INR 2,31,989/MW/month.

The tender for this was floated in June 2026.

GUVNL shall enter into a Battery Energy Storage Purchase Agreement (BESPA) with NIRL for a period of 12 years.

As per the terms of the tender, the BESSD must set up a BESS, with the primary objective of making the energy storage facility available to GUVNL for charging/discharging of the BESS, on an 'on-demand' basis.

Projects will be eligible for viability gap funding (VGF) support at INR 18 lakh/MWh.

Setting up of the BESS and interconnection of the BESS with the state transmission network will be under the scope of the BESSD.

The BESS must be charged by drawing power from GETCO and inject power into the GETCO network in accordance with the dispatch instructions issued by SLDC in consultation with GUVNL. GUVNL will provide the required power for charging the BESS.

BESSD must ensure that the BESS can charge and discharge with a C-rate of 0.5. Additionally, the BESS must be capable of being charged or discharged in groups ranging from 50 MW/100 MWh to 100 MW/200 MWh, up to the total rated capacity specified in the Agreement.

The BESSD must guarantee a minimum system availability of 95 percent on an annual basis. The BESSD must guarantee AC-to-AC round-trip efficiency (RTE) of 85 percent on a monthly basis.

The applicable software for the Energy Management System (EMS) of the BESS project capacity shall be developed indigenously within India. The BESSD is responsible for ensuring that the BESS installed is of requisite quality as per best industrial practices and refurbished battery cells are not used in the project.

BESSD must ensure a minimum local content of 20 percent of the total project cost in BESS procurements under the VGF Scheme. This minimum local content requirement shall include the indigenously developed EMS application software.

Tags:

Energy Storage

NLC India Renewables

NLC India Limited

Gujarat Urja Vikas Nigam

GUVNL BESS auction

Standalone BESS projects in Gujarat