New Delhi: NLC India Renewables Ltd (NIRL), a wholly-owned subsidiary of NLC India Ltd, has received a Letter of Intent (LoI) from Gujarat Urja Vikas Nigam Ltd (GUVNL) to develop a 275 MW/550 MWh standalone Battery Energy Storage System (BESS) in Gujarat.
The project was awarded through a tariff-based competitive bidding process at a tariff of ₹2,31,989 per MW per month.
GUVNL had floated the tender in June 2026 for a total standalone BESS capacity of 450 MW/900 MWh. NIRL emerged as the successful bidder for 275 MW/550 MWh of the proposed capacity.
NIRL Wins 275 MW/550 MWh BESS Project
The Gujarat project marks a significant expansion of NLC India’s renewable energy portfolio and represents the company’s entry into large-scale energy storage.
The key project details include:
- Project capacity: 275 MW/550 MWh
- Project type: Standalone Battery Energy Storage System
- Location: Gujarat
- Offtaker: Gujarat Urja Vikas Nigam Ltd
- Tariff: ₹2,31,989 per MW per month
- Bid process: Tariff-based competitive bidding
- Tendered capacity: 450 MW/900 MWh
- Capacity awarded to NIRL: 275 MW/550 MWh
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GUVNL to Sign 12-Year Battery Storage Agreement
Under the project arrangement, GUVNL will enter into a 12-year Battery Energy Storage Purchase Agreement (BESPA) with NIRL.
The BESS facility will be made available to GUVNL on an on-demand basis for charging and discharging as required.
NIRL will be responsible for establishing the battery energy storage system and connecting it to the state’s transmission network.
The project is also eligible for Viability Gap Funding (VGF) support of ₹18 lakh per MWh, which will support the development of the storage infrastructure.
BESS to Charge From GETCO Network
The proposed storage system will draw electricity from the network of the Gujarat Energy Transmission Corporation Limited (GETCO) for charging.
For discharging, the BESS will operate according to instructions issued by the State Load Despatch Centre, in consultation with GUVNL.
This operating arrangement will allow the storage system to provide energy when required and support greater flexibility in managing the electricity grid.
BESS Must Meet Stringent Performance Requirements
The project includes specific technical and performance requirements for the battery storage system.
The BESS must be capable of:
- Charging and discharging at a C-rate of 0.5
- Operating in configurations ranging from 50 MW/100 MWh to 100 MW/200 MWh
- Operating up to its total rated capacity
- Maintaining minimum annual system availability of 95%
- Achieving monthly AC-to-AC round-trip efficiency of 85%
These requirements are aimed at ensuring reliable performance and efficient operation of the storage facility over the project’s operating period.
Indigenous EMS and Local Content Requirements
The project also includes specific provisions related to domestic technology and local manufacturing.
The Energy Management System (EMS) software used for the project must be developed indigenously within India.
Under the VGF scheme, the project is required to meet a minimum local content requirement of 20% of the total project cost, including the EMS application software.
The tender conditions also explicitly prohibit the use of refurbished battery cells, ensuring that the project uses compliant battery technology for the proposed large-scale storage system.
Project Strengthens NLC India’s Renewable Energy Portfolio
The Gujarat BESS project marks NLC India’s entry into large-scale energy storage, adding an important new component to its renewable energy portfolio.
Energy storage is becoming increasingly important as renewable power capacity expands and the electricity sector requires greater flexibility to balance variable renewable generation.
The project is expected to contribute to the growing requirement for energy storage capacity, grid flexibility and renewable energy integration.
By entering the large-scale BESS segment, NIRL is expanding beyond renewable power generation and strengthening its presence in emerging clean energy infrastructure.
About NLC India Limited
NLC India Limited (NLCIL) is a Navratna public sector enterprise under the Ministry of Coal, Government of India. The company is engaged in mining and power generation and is expanding its presence in renewable energy and emerging clean energy solutions through its subsidiaries, including NLC India Renewables Ltd.
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