Rajasthan Issues Bids For 500 MW/1,000 MWh Standalone BESS To Boost Renewable Integration

The Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has issued a Request for Selection (RfS) for setting up 500 MW/1000 MWh Standalone Battery Energy Storage Systems (BESS) in Rajasthan. This initiative is aimed at integrating renewable energy (RE) sources such as solar and wind with India’s power grid to stabilize fluctuations in energy supply. The BESS projects will be developed under a Build Own Operate (BOO) model and will be supported by Viability Gap Funding (VGF) from the government. An additional “Green Shoe” option allows for expanding capacity by another 500 MW/1000 MWh if deemed necessary.

Bidders for this project must submit an Earnest Money Deposit (EMD) of ₹10.7 Lakhs per MW in the form of a Bank Guarantee (BG) valid for 12 months from the bid submission deadline. Additionally, successful bidders are required to furnish a Performance Bank Guarantee (PBG) of ₹26.5 Lakhs per MW. This PBG must be submitted before the signing of the Battery Energy Storage Purchase Agreement (BESPA) and remains in effect for the duration of the contract to ensure compliance with project obligations.

To participate, interested companies must register on Rajasthan’s e-procurement portal and complete bid submissions, adhering to a two-envelope system for technical and financial proposals. They are required to pay a non-refundable processing fee of ₹2,500 plus GST and a tender document fee of ₹15 lakh plus GST. Bidders must meet eligibility requirements, including financial capability, technical experience, and adherence to regulations regarding connectivity with the State Transmission Utility (STU) grid at a minimum voltage level of 220 kV.

The project’s scheduled completion date (SCD) is set for 18 months from the effective date of BESPA, with an allowable grace period of six additional months. Delays beyond this period incur penalties based on the uncommissioned capacity and the extent of the delay. For instance, if there’s an 18-day delay in commissioning 100 MW of a 125 MW project, the penalty is calculated on a prorated basis of the remaining capacity. Early commissioning is allowed, and any energy produced can be sold to third parties if RVUNL does not accept it. However, the BESS must meet the contractually agreed capacity at the SCD.

The projects will receive VGF support, which is capped at ₹27 Lakhs per MWh or 30% of the project’s capital cost, whichever is lower. The VGF is disbursed in five tranches: 10% at financial closure, 45% upon commercial operation, and the remaining in three installments over the next three years. A separate BG equivalent to 100% of the VGF amount must be provided, held by RVUNL for five years post-COD. Should the BESS developer default within this period, RVUNL can recover the VGF along with an interest rate of SBI’s one-year MCLR plus 5%.

The integration of BESS is seen as essential for managing grid stress, especially during peak demand in the mornings and evenings when RE supply can be intermittent. RVUNL, acting on behalf of Rajasthan’s Energy Department, will oversee the entire process, selecting locations for project deployment in collaboration with RVPNL, with specific sites including the Giral Lignite Power Project in Barmer and the Suratgarh Thermal Power Station.

This RfS marks a significant step toward achieving India’s renewable energy goals by 2030. By fostering competitive bidding for large-scale BESS, RVUNL seeks to enhance grid stability, optimize the use of renewable energy sources, and reduce transmission infrastructure demands. Bidders are encouraged to stay updated on amendments or notifications via the e-procurement portal, as this document may undergo changes.