GERC Confirms Cancellation Of 500 MW Battery Energy Storage Tender Over Non-Compliance And Delay In Gujarat
Source：solarquarter
The Gujarat Electricity Regulatory Commission (GERC) issued its final order in Petition No. 2371 of 2024, filed by Gujarat Urja Vikas Nigam Limited (GUVNL) against Gensol Engineering Limited, on October 17, 2025. The case involved the adoption of a tariff discovered under the competitive bidding process for the procurement of 250 MW/500 MWh Standalone Battery Energy Storage Systems (BESS) with an additional Greenshoe option of 250 MW/500 MWh under Phase III of GUVNL’s storage initiative in Gujarat.
The Commission noted that the bidding process was conducted transparently under guidelines issued by the Ministry of Power on March 10, 2022. Gensol Engineering Limited was declared the successful bidder with a tariff of ₹3,72,978 per MW per month for 250 MW/500 MWh and was also offered the Greenshoe capacity at the same rate. However, the issue arose when Gensol failed to meet post-award obligations, particularly the execution of the Battery Energy Storage Purchase Agreement (BESPA) and submission of the Performance Bank Guarantee (PBG) within the stipulated time.
Gensol submitted that its audited financials for FY 2023–24 were not finalized at the time of bid submission, so it had provided provisional net worth statements certified by a Chartered Accountant, showing ₹343.63 crore—meeting the requirement of ₹185 crore for 250 MW capacity. For the Greenshoe capacity, the company later submitted another certificate showing ₹494 crore as of June 10, 2024, exceeding the required ₹370 crore. Gensol therefore claimed full compliance with the financial eligibility criteria.
However, GUVNL argued that while Gensol met the initial qualification, it failed to sign the BESPA and submit the required PBG despite repeated reminders and extensions until April 30, 2025. Further extensions were sought up to May 30, 2025, but Gensol still did not comply. GUVNL also brought to the Commission’s attention an interim SEBI order against Gensol and its directors for alleged financial irregularities, which raised questions about the company’s credibility.
After reviewing all affidavits and submissions, the Commission found that the delay and failure to execute the BESPA violated both the bidding conditions and its earlier order dated April 3, 2025, which required the timely execution of agreements. Clauses in the Request for Selection (RfS) and Letter of Intent (LoI) clearly stated that failure to sign the BESPA within ten days or within any extended date would render the LoI null and void and result in forfeiture of the Earnest Money Deposit (EMD).
The Commission concluded that GUVNL was justified in its decision to cancel both the base and Greenshoe capacities totaling 500 MW/1000 MWh and to forfeit the EMD of ₹18.5 crore. It ruled that Gensol’s reliance on provisional financial certificates did not remedy the failure to meet contractual and procedural obligations.
In its final order, GERC upheld the transparency of GUVNL’s bidding process but held that the absence of a signed BESPA meant there was no valid contract for tariff adoption. Therefore, the petition was disposed of without adopting the tariff, and GUVNL’s actions to cancel the allocation and forfeit the deposit were confirmed as legitimate.