India’s 20MW/120MWh vanadium flow tender sets cost benchmark

India’s Gujarat Industrial Power Company Limited (GIPCL) has moved forward on a 20MW/120MWh vanadium flow battery energy storage system. Delectrik Systems confirmed it won the public tender and will deliver the six-hour system, according to ESPlaza Long-Duration Energy Storage Network. It is Delectrik’s second hundred-megawatt-hour-scale flow battery project this year.

Separately, listed infrastructure EPC firm Bondada Engineering Limited announced it received a formal letter of intent from GIPCL for the project’s EPC-plus-O&M contract. The contract value is INR 2,392.5 million—about RMB 168 million—equivalent to roughly RMB 1.40/Wh.

What the cost figure tells us

The RMB 1.40/Wh figure is a useful benchmark for vanadium flow storage in India. It covers engineering, procurement, construction, and operations and maintenance, so it is not directly comparable to bare battery cell prices. Still, it provides a reference for developers and policymakers assessing the economics of long-duration storage.

The 20MW/120MWh GIPCL project’s EPC-plus-O&M contract is valued at about RMB 1.40/Wh, according to Bondada Engineering’s announcement.

At six hours duration, the project sits firmly in the long-duration category. Vanadium flow batteries are particularly suited to such applications because their energy capacity can be expanded by adding electrolyte, while power capacity is set by stack size. That flexibility can lower the marginal cost of longer durations.

Delectrik’s growing pipeline

Delectrik’s win follows another hundred-megawatt-hour-scale project earlier in 2026. The repeat awards suggest growing confidence in the company’s technology and execution capability. For India, the GIPCL tender is part of a broader push to integrate renewable energy and strengthen grid reliability.

The split between Delectrik as battery supplier and Bondada as EPC contractor also reflects a maturing supply chain. Specialized EPC firms can take on balance-of-plant, civil works, and O&M, allowing battery makers to focus on cells, stacks, and electrolyte. That division of labour is common in solar and wind and is now emerging in LDES.

Investors should watch whether the RMB 1.40/Wh benchmark holds for future projects and whether it includes grid connection and long-term performance guarantees. If costs continue to decline, vanadium flow storage could become competitive with lithium-ion in India’s longer-duration tenders. The GIPCL project will be an important reference case.

This article was assisted by AI analysis. Please refer to the original source for official information.