In March 2024, the global energy storage market witnessed a landmark event. The Indian public utility Gujarat Urja Vikas Nigam Limited was able to lower its rates, or tariffs, for energy storage by 58 per cent, compared to bids submitted in a previously issued government tender. The low tariffs, which were the lowest rate ever reported, would open a floodgate of opportunities for the renewable energy industry. Commercially viable energy storage would encourage investments in inherently intermittent solar and wind generation. It would also offer a new alternative for improving grid availability and reliability. However, a sudden drop of over 50 per cent in tariffs also raised new questions. Was the submitted bid to the government tender feasible? Would these low rates be viable in the short and long term? Would low tariffs continue to attract investment in this sunrise sector, which was seeking significant private-sector investments? Amid these questions, the managing director of Gujarat Urja Vikas Nigam Limited had to determine how to proceed.