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					</table>Gujarat Energy Transmission Corporation (<a href="https://www.getcogujarat.com/getco_newsite/index.php" target="_blank" rel="noopener">GETCO</a>) has invited bids to appoint a project management consultant for an automatic generation control (AGC)-enabled 5 MW/2.5 MWh battery energy storage system (BESS) pilot project in Vadodara, Gujarat.
The tender is being floated on behalf of the State Load Despatch Center (SLDC).
The project will provide grid support services to the SLDC and will be implemented under a storage-as-a-service (StaaS) model. The BESS will be designed to provide a 30-minute discharge duration.
The last date to submit bids is September 28, 2026. Bids will be opened on the same day.
Bidders must furnish an earnest money deposit of ₹40,000 (~$422) and pay a tender fee of ₹1,180 (~$12). Successful bidders must furnish a performance bank guarantee equivalent to 5% of the contract value.
The scope of work covers technical, regulatory, commercial, and implementation management services for the BESS project, from reviewing the detailed project report and preparing bidding documents to commissioning and post-commissioning monitoring.
The project must be completed within 24 months.
Selected bidders must assist GETCO and SLDC in conducting the competitive bidding process to select the BESS service provider, respond to pre-bid queries, prepare corrigenda, evaluate technical and commercial bids, and recommend the successful bidder.
They must also integrate the storage system with SLDC&#8217;s AGC and supervisory control and data acquisition systems (SCADA).
SLDC must conduct a 72-hour integrated system test before commissioning. The test will cover ramp-up and ramp-down, bi-directional dispatch, holding at set points, heartbeat-loss recovery, state-of-charge limits, and cycle-count thresholds.
The project entails issuing provisional and final commissioning certificates and monitoring the BESS for up to three months after commissioning.
The standalone BESS will be connected to GETCO&#8217;s 66 kV substation at the State Transmission Utility boundary. It will primarily provide secondary reserve ancillary services through AGC. Communication between the BESS energy management system and SLDC&#8217;s SCADA/AGC platform must be secured through a fiber-optic connection.
End-to-end latency between an AGC set point generated by SLDC and the resulting change in BESS output must be less than four seconds. If the communication heartbeat is lost for more than 12 seconds, the system must automatically ramp to zero MW.
The BESS must maintain at least 95% monthly availability. It is designed for an average of three cycles a day and a maximum of five cycles a day.
GETCO has stipulated liquidated damages of 0.5% of the contract value for every week of delay in submitting agreed deliverables, capped at 5% of the total contract value.
The pilot envisages either two 2.5 MW modular strings or a single integrated 5 MW block. Active liquid cooling of the battery cells is mandatory, considering ambient temperatures of up to 48°C in Gujarat.
Selected bidders must review these configurations and recommend the optimal design based on safety, thermal management, and reliability considerations.
In January 2026, the Grid Controller of India <a href="https://www.mercomindia.com/grid-india-proposes-automatic-generation-control-for-renewable-energy-projects" target="_blank" rel="noopener">proposed</a> extending AGC to large-scale renewable energy projects above 100 MW, battery energy storage systems, and pumped-storage projects.
Gujarat SLDC said the rapid growth of renewable energy has led to significant grid management challenges. Area control error at the state periphery exceeded 350 MW in nearly 30% of in-band frequency blocks, while deviation settlement mechanism penalties and renewable energy curtailment have also increased.
The SLDC also highlighted difficulties in maintaining adequate reserves.
The Gujarat government has sanctioned financial assistance to GUVNL for this project, and it will also serve as a regulatory sandbox. The operational and commercial data will help the Gujarat Electricity Regulatory Commission to develop a state-level framework for procuring ancillary services.
The project requires the power conversion systems and BESS containers to be physically separated to prevent thermal cross-contamination and ensure full-rated output across all seasons. A redundant 200 kVA auxiliary transformer, tapped from the 11 kV bus, must be established to provide auxiliary power.
SLDC/GETCO will pay the selected BESS service provider a fixed monthly capacity charge based on the availability of the contracted capacity, under the Staas model.
Bidders must have provided technical consultancy or project management services for at least one BESS project with a minimum capacity of 1 MW connected to a state or national transmission or distribution grid in India. The project must have been commissioned and be operational.
They must also have at least five years of experience in the power sector, covering at least two areas among load despatch operations, SCADA/AGC systems, grid ancillary services, renewable energy integration, and power sector regulatory advisory.
Bidders must have an average annual turnover of at least ₹6 million (~$63,330) from consultancy or advisory services during the preceding three financial years and a positive net worth as of their latest audited balance sheet.
To reduce the stress on the grid, GERC also <a href="https://www.mercomindia.com/gujarat-cuts-green-energy-open-access-banking-charges-to-%E2%82%B91-kwh" target="_blank" rel="noopener">changed</a> the methodology for determining banking charges to a framework based on 15-minute interval injection and consumption data, power exchange prices, variable generation costs, transmission charges, and other relevant parameters. The framework will take effect on April 1, 2027.

GETCO Seeks Consultant for Pilot 2.5 MWh Battery Storage Project

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					</table>With renewables overtaking coal-based sources in India’s installed power capacity, concerns are growing around intermittency, grid stability, and power balancing as solar and wind power injection increases. Solar-heavy states such as Rajasthan and Gujarat are already facing rising risks of curtailment and transmission congestion.
Developers say technologies such as Automatic Generation Control (AGC) and grid-forming inverters, along with storage deployment and transmission expansion, will become increasingly important to maintaining grid reliability, efficiency, and resilience as renewable penetration rises.
While AGC can stabilize the grid by automatically adjusting generation or battery output to balance supply and demand and maintain frequency, grid-forming inverters can provide rapid voltage and frequency support by mimicking conventional generators. This helps renewable-heavy grids remain stable during disturbances.
According to data from the Central Electricity Authority, the Ministry of New and Renewable Energy, and Mercom’s India Solar Project Tracker, India’s renewable energy capacity, including large hydroelectric projects, <a href="https://www.mercomindia.com/solar-share-in-indias-renewable-energy-capacity-rises-to-55-in-q1-2026" target="_blank" rel="noopener">made</a> up 51.7% of the country’s cumulative power capacity, with 276.5 GW installed at the end of the first quarter of 2026.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1.jpg"><img loading="lazy" decoding="async" class="aligncenter wp-image-95270 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1.jpg" alt="" width="1055" height="728" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1.jpg 1055w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1-300x207.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1-768x530.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1-650x449.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1-624x431.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/05/GRDI1-600x414.jpg 600w" sizes="auto, (max-width: 1055px) 100vw, 1055px" /></a>
The push for grid stabilization <a href="https://www.mercomindia.com/indian-grid-authorities-call-for-action-to-prevent-spain-type-power-blackout" target="_blank" rel="noopener">comes</a> amid Grid India highlighting 68 instances of renewable energy generation losses exceeding 1 GW between 2022 and 2025 across large renewable energy complexes, primarily due to inadequate reactive support and fault-ride-through failures.
For instance, over three days in August 2024, India’s electricity grid experienced persistently high frequencies above the 50.05 Hz ceiling for 26% to 38% of the time.
While AGC and grid-forming (GFM) technology offer significant operational advantages, they also present implementation challenges. Their integration can impose additional financial burden on developers already dealing with grid constraints, energy curtailment, and policy uncertainty.
In two discussion papers published last year, GRID India explored <a href="https://mercomindia.com/grid-india-proposes-grid-forming-capability-for-50-mw-bess-installations" target="_blank" rel="noopener">extending</a> GFM requirements to all new battery energy storage systems above 50 MW located in weak-grid or remote areas. Another paper examined the <a href="https://mercomindia.com/grid-india-proposes-automatic-generation-control-for-renewable-energy-projects" target="_blank" rel="noopener">expansion</a> of AGC to renewable energy projects above 100 MW for secondary reserve ancillary service down-regulation.
In another push for GFM adoption, GRID India <a href="https://www.mercomindia.com/grid-india-suggests-stability-safeguards-for-battery-storage-projects" target="_blank" rel="noopener">proposed</a> to the Central Transmission Utility that all new battery energy storage systems exceeding 50 MW be required to include grid-forming capability upon connectivity approval.
Developers say renewable energy projects equipped with grid-forming inverters and AGC can deliver power in a more stable and dispatchable manner, which will be essential for India’s transition to a high-renewable power system.
Ashutosh Vyas, Head – Energy Business (Utility) at <a href="https://www.herofutureenergies.com/" target="_blank" rel="noopener">Hero Future Energies</a>, said the combination of GFM and AGC enables fast local responses to grid disturbances while supporting coordinated system-level control.
He explained that GFM can act within milliseconds to establish voltage and frequency, provide synthetic inertia, and limit the rate of change of frequency under weak-grid conditions. AGC, on the other hand, operates over longer timeframes and helps maintain a continuous supply-demand balance by optimizing dispatch and restoring system frequency to nominal levels.
Krishnan C Menon, General Manager and Head of Engineering and Design at <a href="https://www.radiancerenewables.com/" target="_blank" rel="noopener">Radiance Renewables</a>, said grid-forming inverters help maintain grid stability during disturbances. He explained that conventional grid-following inverters track the existing grid frequency while continuing to inject power. In contrast, grid-forming units actively support the grid by helping control voltage and stabilizing frequency.
This makes grid-forming inverters the first line of defense during grid disturbances, especially in weak-grid conditions or in systems with high renewable energy penetration.
Industry experts say integrating GFM at the generation level can reduce reliance on traditional baseload power plants. These technologies can help the grid manage the renewable energy variability more effectively, making the power system more flexible and reliable.
Siddharth Bhatia, MD and CEO at AB Energia, said grid-forming inverters and AGC together represent a shift from passive renewable generation to active grid participation.
Such grid innovations could be a game-changer for the renewable energy sector, which continues to face significant curtailment, especially in high-irradiance states where grid constraints limit power evacuation.
Developers say that, based on current renewable energy projections, India’s grid capacity may need to grow by 2x to 2.5x its current size by 2050.
According to the Central Electricity Authority, India <a href="https://www.mercomindia.com/india-eyes-137500-ckm-grid-expansion-to-support-900-gw-renewables-by-fy-2036" target="_blank" rel="noopener">plans</a> to expand its transmission network by 137,500 circuit km of lines and 827,600 MVA of substation capacity at an estimated cost of ₹7.93 trillion (~$84.33 billion) to support 900 GW of non-fossil fuel capacity by the financial year 2035-36. However, against the cumulative target of 15,382 ckm of transmission lines for April 2025 to March 2026, India achieved 12,139 ckm, accounting for 78.9% of the target.
Vyas noted that as renewable energy deployment accelerates, grid expansion must keep pace across transmission capacity, system strength, and operational flexibility. He added that technologies such as AGC and GFM can help optimize the utilization of existing infrastructure.
Developers said these technologies may not eliminate the need for physical grid expansion. However, they can help the system absorb higher levels of renewable energy more efficiently while accelerating energy transition without requiring proportionate increases in grid infrastructure investment.
They also noted that such integrations can reduce renewable energy curtailment, improve power transfer capability, and delay the need for additional grid infrastructure investments.
Additional Financial Burden
While integrating GFM and AGC offers significant benefits for grid stability and higher renewable energy injection, it also increases project costs.
Developers estimate that these technologies can raise project capital expenditure by 5% to 8%. However, they said the additional cost could be offset over time through lower curtailment and reduced ancillary service expenses.
Vyas highlighted that as the market shifts toward hybrid, round-the-clock, and firm power solutions, these capabilities are likely to become essential components of project viability rather than optional additions. “In the long run, they improve bankability and long-term returns by making renewable projects more dependable and future-ready.”
However, he added that the cost premium could remain a constraint for purely energy-arbitrage projects operating on tighter margins.
To encourage adoption, developers say renewable projects investing in AGC and GFM should be compensated through clear mechanisms. These could include performance-based incentives for accurately meeting grid requirements, payments for ancillary services, capacity payments, or dedicated provisions in power purchase agreements that recognize the costs of these technologies.
Challenges
Despite their potential benefits, several challenges remain in implementing these technologies. These include limited retrofitting capability for existing renewable energy projects, the need for grid-side upgrades, and limited domestic manufacturing capability.
Developers said integrating these solutions into existing renewable energy projects could be relatively straightforward. However, grid interconnection may still require broader upgrades to the transmission and control systems.
Vyas said AGC can be integrated into renewable energy projects relatively easily by upgrading plant controllers, communication networks, and software logic, enabling projects to respond to grid operator instructions automatically. He added that GFM is better suited to existing solar or wind projects paired with storage systems.
However, effective deployment will also require stronger real-time monitoring systems, enhanced grid controls, and faster operational response capabilities to manage fluctuations in supply, demand, and grid conditions.
Another major challenge is domestic manufacturing readiness. India’s capability to manufacture grid-forming inverters and AGC-enabled systems is evolving but remains underdeveloped.
In February 2026, the CEA <a href="https://www.mercomindia.com/cea-reviews-grid-forming-inverter-capacity-as-renewables-expand" target="_blank" rel="noopener">asked</a> inverter manufacturers to disclose their domestic production capacity for grid-forming inverters to assess India’s manufacturing readiness.
Developers pointed out that India still relies heavily on global original equipment manufacturers for advanced grid-forming controls, high-end power semiconductors, and real-time control software.
They also highlighted India’s limited domestic experience in large-scale system integration, testing, and validation of grid-forming behavior under weak-grid conditions, capabilities which are critical to ensuring reliable deployment.
Renewable energy developers say the adoption of GFM and AGC will largely depend on regulatory reforms that mandate or incentivize their integration.
Effective adoption will require clearly defined grid-forming requirements in grid codes, along with broader frameworks that enable inverter-based resources to participate in AGC and ancillary service markets. The government will also need to establish a clear revenue mechanism for grid-stability services provided by renewable energy projects.

Can Automatic Generation Control and Grid-Forming Inverters Solve Grid Challenges?

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