IndiGrid, a publicly listed power sector infrastructure investment trust (InvIT), has confirmed the receipt of a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam (GUVNL) for the development, installation, and operation of a 180 MW/360 megawatt-hour (MWh) Battery Energy Storage System (BESS) in Gujarat.

This project, forming a crucial part of a larger 250 MW/500 MWh BESS initiative envisioned by GUVNL, aims to enhance the state's energy storage capabilities and facilitate the utilization of renewable energy during both peak and off-peak hours.

According to the Power Ministry, the Energy Storage System (ESS) will be categorized based on its application and location. IndiGrid specified that since this particular project will be integrated into the grid and situated in the Gujarat Energy Transmission Corporation (GETCO) substation, it will be considered an integral part of the transmission system.

Emerging as the second lowest bidder in the reverse auction process orchestrated by GUVNL, IndiGrid secured the contract for 180 MW/360 MWh by proposing a fixed tariff of ₹4,49,996 per MW per month, equating to an annual tariff exceeding Rs 97 crore.