Advait Energy wins 150 MW Gujarat BESS LoI in 2026

The headline: Advait gets GUVNL LoI for standalone BESS

Advait Energy Transitions Limited has received a letter of intent (LoI) from Gujarat Urja Vikas Nigam Limited (GUVNL) to set up a 150 MW/300 MWh standalone battery energy storage system (BESS) project in Gujarat. The award is part of GUVNL’s Phase VIII procurement under a tariff-based competitive bidding route. The company disclosed that the tender process is supported by viability gap funding (VGF) through the Power System Development Fund (PSDF), and will be followed by an e-reverse auction.

The development places Advait among the winners in a grid-scale storage tender aimed at improving grid stability and enabling renewable energy integration. The LoI also outlines an execution timeline linked to the signing of the battery energy storage purchase agreement.

What exactly has been awarded

The LoI is for a standalone BESS capacity of 150 MW with energy capacity of 300 MWh. The project has been awarded by GUVNL, the state-level entity involved in power procurement and related grid-support arrangements in Gujarat. The purpose of the storage system, as described in the tender context, is to make the energy storage facility available to GUVNL for charging and discharging on an “on demand” basis.

The broader tender was for 335 MW/670 MWh of standalone BESS capacity in Gujarat. Advait emerged as the L1 bidder and won 150 MW within this larger allocation.

Tender timeline: December 2025 to April 2026

The tender was floated in December 2025. The auction for awarding capacities was held in February 2026, according to the company’s disclosure and tender context shared in the reporting. Advait said it received confirmation from GUVNL on February 11, 2026.

The LoI disclosure is dated April 01, 2026. The LoI is described as received in the normal course of business, and the award falls under Phase VIII of GUVNL’s tariff-based competitive bidding for standalone BESS supported by VGF.

Tariff discovered through competitive bidding

Advait’s quoted tariff for the awarded capacity is Rs 210,000 per MW per month (also reported as around INR 2.10 lakh per MW per month). This tariff is the monthly charge for the contracted MW capacity under the tender structure.

The Phase VIII tender results reported alongside Advait’s award also indicate that Equentia Natural Resources DMCC won 65 MW/130 MWh with a quoted tariff of Rs 211,999 per MW per month. The tariff comparison highlights how tightly priced bids were in the auction for grid-scale storage capacity.

Viability gap funding support under PSDF

The project is eligible for viability gap funding support routed through the Power System Development Fund. VGF is intended to support large-scale battery storage deployment by improving project viability, particularly in early-stage tenders where tariffs alone may not fully cover costs.

Tender guidelines referenced in the reporting state that VGF support is Rs 1.8 million per MWh of awarded capacity, also described as 18 lakh per MWh. The LoI award is explicitly linked to VGF-backed procurement under Phase VIII.

Execution timeline: 18 months from BESPA effective date

Advait is required to execute the project within 18 months from the effective date of the battery energy storage purchase agreement. This is a key contractual milestone because it ties commissioning expectations to the agreement signing rather than only the LoI date.

The selected bidders are expected to sign a 12-year battery energy storage purchase agreement (BESPA). The combination of a defined commissioning window and a long-term agreement period is central to how such storage projects are financed and contracted.

Scope of work and operating model

The tender scope includes design, financing, supply, installation, testing, and commissioning of the BESS project. This makes the developer responsible for end-to-end project execution, from arranging equipment and engineering to delivering an operational system.

Operationally, the BESS is intended to be available for GUVNL’s charging and discharging requirements on demand. The reporting also states that GUVNL will provide the required power for charging the BESS, aligning the storage asset with grid operations rather than merchant energy trading.

Why Gujarat is procuring standalone storage capacity

Standalone BESS procurement is being used to strengthen grid stability and support renewable energy integration. Storage can help manage variability from renewable generation by shifting energy across time and by supporting peak demand management when called upon.

Phase VIII also signals continued scale-up in state-level storage procurement, with the tender size of 335 MW/670 MWh indicating Gujarat’s interest in contracting storage capacity as a grid service under structured, long-term agreements.

Key facts at a glance

Market impact: what investors typically track from here

The LoI confirms that Advait has been selected under a competitive tender and indicates the tariff level at which the company has secured capacity. It also establishes the project’s timeline and the VGF support framework, both of which are relevant to assessing execution requirements and contracting structure.

For the broader storage segment, the tariff and close pricing between winners reflect active competition in grid-scale BESS bidding. The Phase VIII structure, including VGF and a long-term BESPA, reinforces the policy approach of combining public support with competitive price discovery.

What comes next

The next formal step is the signing of the battery energy storage purchase agreement with GUVNL. After the BESPA becomes effective, the 18-month commissioning clock applies as stated in the tender guidelines and the company’s filing. The process is also expected to be followed by an e-reverse auction, as referenced in the disclosure.

Advait’s progress will be monitored through regulatory updates related to the BESPA execution and subsequent project milestones up to commissioning within the stipulated period.