Rajasthan Initiates Groundbreaking Bid For 1,000 MW Pump Storage Energy Solution With 6,000 MWh Capacity

Rajasthan Urja Vikas & IT Service Limited, representing Jaipur Vidyut Vitaran Nigam Limited, Ajmer Vidyut Vitaran Nigam Limited, and Jodhpur Vidyut Vitaran Nigam Limited, has filed a petition for approval to initiate a bidding process. This process aims to secure 1,000 MW of power, with a continuous discharge of 6,000 MWh per day for four hours, from Pump Storage based Energy Storage Solutions (ESS) located anywhere in India. The energy will be connected to the Central Transmission Utility (CTU) to meet the requirements of the three Distribution Licensees.

The petitioner has indicated that the Government of Rajasthan approved on October 6, 2022, the procurement of power on a long-term basis through a tariff-based competitive bidding process. This procurement will come from 1,500 MW wind-solar hybrid projects with an accompanying storage system, providing flexibility in energy scheduling to meet the state’s demand and Renewable Purchase Obligation (RPO).

In the 20th meeting of the Energy Assessment Committee of Rajasthan, held on January 7, 2022, it was revealed that there was a deficit of energy during peak hours. Subsequently, in the 57th meeting of the RUVNITL Board held on August 17, 2023, it was resolved to initiate a separate tender process to secure 1,000 MW ESS from Pump Storage Hydro Projects with specified discharge hours, ensuring flexibility in scheduling as required.

Given the lack of standard bidding documents or guidelines for tying up storage capacity from Pumped Storage Plants (PSP), the petitioner has approached the Commission seeking approval of the bidding documents. They have requested approval for the tie-up of 1,000 MW/6,000 MWh per day from Pump Storage based ESS, as well as the bidding documents to meet the requirements of the three Distribution licensees. The petitioner also noted that since there has been limited development in Pumped Hydro Projects, this is the first attempt by RUVNITL to float a bid for a standalone ESS. Therefore, they have requested permission to make modifications to the bid document based on feedback from prospective bidders, system experts, and any guidelines or advisories issued by competent authorities during the bidding process.

The matter was heard on several occasions, including October 4, 2023, January 2, 2024, February 6, 2024, March 7, 2024, and March 27, 2024. During the hearing on March 7, 2024, the Commission, recognizing the importance of the issue for the state’s energy security, directed the petitioner to issue a notice seeking a Request for Proposal (RFP) for selecting developers for the project. This notice was to be issued within four days of the order and was to incorporate the comments and suggestions received from stakeholders.

Following the initiation of the bid process, several significant events occurred. On June 28, 2023, the Ministry of Power issued guidelines for the Resource Adequacy Planning Framework, requiring each distribution licensee to secure sufficient capacity through a mix of long, medium, and short-term contracts to ensure supply security at the least cost. RUVITL is in the process of finalizing the Resource Adequacy Plan (RAP) for Rajasthan, expected to be completed by March 2024. This plan will identify the optimal sources to meet future energy deficits. Additionally, the Rajasthan Renewable Energy Corporation Ltd., the state’s nodal agency for promoting electricity generation from renewable sources, is preparing a policy for the development of Pump Storage Plants in the state, expected to be finalized in the coming months.

In light of these developments, the petitioner requested an extension of the timeline to initiate the Notice Inviting Tender (NIT) until the finalization of the state policy and the RAP. This extension would ensure that the bidding document aligns with the policy provisions and incorporates stakeholders’ comments and suggestions.

After careful consideration, the Commission observed that managing the intermittency of renewable energy and ensuring grid stability is crucial, with Pump Storage being one of the most suitable solutions. The Commission commended RUVITL for planning to secure 1,000 MW Pump Storage Power but emphasized the importance of executing the plan promptly.

The Commission directed that until the Regulations or Guidelines regarding RAP are finalized, the petitioner should prepare the RAP according to CEA guidelines and submit it for approval. The petition was disposed of, granting the petitioner the liberty to approach the Commission once the RAP and the state policy for developing PSP plants are finalized. The order concluded with no costs assigned​.