Falling storage costs highlighted as India clears 600 MWh project for $75 million
HG Infra Engineering’s subsidiary HG Choraniya Bess has signed a long-term battery energy storage purchase agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL) for a 300 MW / 600 MWh system.
The company secured the capacity through GUVNL’s Phase VI auction, which tendered 500 MW / 1,000 MWh of storage under a tariff-based competitive bidding process. HG Infra plans to complete the project within 24 months.
The agreed tariff is about US$3,200 (INR 285,600) per MW, and the contract will run for 12 years.
The total project cost is estimated at around US$75 million (INR 670 crore), excluding taxes. According to a recent study by Ember Energy, the capital cost of battery storage has fallen from about US$88,500 (INR 7.9 million) per MWh in 2015 to about US$19,000 (INR 1.7 million) per MWh in 2025.
HG Infra will deliver the system on a build-own-operate basis. Once operational, the BESS will be available to GUVNL for charging and discharging on demand, supporting grid stability and the integration of renewable energy across Gujarat.
From pv magazine India.
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