Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) filed a petition seeking approval for the tariff discovered through competitive bidding for setting up a 500 MW/1000 MWh Standalone Battery Energy Storage System (BESS) in Rajasthan. The project includes an additional green shoe option of another 500 MW/1000 MWh. This battery storage capacity will be developed under a Build-Own-Operate (BOO) model and supported by viability gap funding (VGF) from the central government.
The bidding process followed guidelines issued by the Ministry of Power on March 10, 2022. A total of 11 bidders participated, and after technical and financial evaluation, four were selected through a reverse auction. These include JSW Neo Energy, Solarworld Energy Solutions, Rays Power Experts, and Oriana Power. The discovered tariffs ranged from ₹2.21 lakh/MW/month to ₹2.24 lakh/MW/month.
The Commission examined whether the bidding was transparent and market-aligned. It confirmed that the bidding process met government norms and that the tariff rates were among the lowest in recent similar tenders in India. The project aims to improve grid stability, integrate renewable energy, and reduce the power purchase cost for distribution companies (DISCOMs). Daily energy savings of ₹18 lakh to ₹1 crore are expected by using stored renewable energy instead of costly peak-hour power purchases.
The project will be implemented at four key locations across Rajasthan: Giral, Suratgarh, Heerapura, and Sakatpura. These sites were selected based on technical and operational benefits, including proximity to renewable sources and grid load management capabilities.
The Commission approved the tariffs for a 12-year term and directed RRVUNL to maintain transparency by publicly disclosing the details of successful bidders and their tariffs. The Commission also advised exploring advanced battery technologies and submitting regular progress reports.
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