Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has issued a Request for Selection (RfS) to set up 1,000 MW/2,000 MWh Standalone Battery Energy Storage Systems (BESS) in Rajasthan. The projects will be implemented under a Build Own Operate (BOO) model through a global competitive bidding process supported by Viability Gap Funding (VGF). This initiative is aligned with the state’s increasing focus on integrating renewable energy sources and ensuring grid stability, especially during peak demand hours when solar and wind energy may not be consistently available.
The RfS invites both public and private sector participants to submit bids, with the minimum bid size set at 100 MWh. The entire capacity is to be connected with the State Transmission Utility (STU), and RVUNL will serve as the intermediary procurer of energy. Developers will be selected based on e-bidding followed by an e-reverse auction. Each bidder can be allotted a maximum capacity of 250 MW/500 MWh. Part commissioning is allowed, but must begin with at least 50 MW.
A key highlight of the tender is the provision of VGF under the Power System Development Fund (PSDF) scheme. The VGF will be disbursed in three tranches: 20% on financial closure with a bank guarantee, 50% on commercial operation date, and 30% after the first year of operation. This financial assistance is aimed at improving project viability and attracting more developers.
The BESS systems must be capable of two full charge/discharge cycles per day, and a minimum system availability of 95% is required monthly. Failure to meet these performance standards will result in liquidated damages. Moreover, the systems are expected to achieve a minimum round-trip efficiency (RtE) of 85%. If performance falls below this benchmark, penalties will be applied, while performance above the benchmark will be rewarded with incentives.
RVUNL will handle scheduling for charging and discharging the batteries and ensure integration with grid operations. Developers are responsible for the cost of connecting their systems to the grid and must comply with all technical standards, safety requirements, and regulatory approvals. RVUNL may provide land at actual charges if available, though developers may also procure land independently.
Commissioning of projects must occur within 18 months from the effective date of the Battery Energy Storage Purchase Agreement (BESPA), with a six-month grace period allowed with penalties. Early commissioning is permitted, but RVUNL is not obligated to procure power before the scheduled date. However, if accepted, RVUNL will pay the agreed tariff plus a small trading margin.
The RfS clearly states that already commissioned projects are ineligible, and battery capacity used in this tender cannot be claimed under any other central or state scheme. Bidders must also ensure compliance with Ministry of Finance guidelines if they are from countries sharing a land border with India.
This RfS is a significant step by the Rajasthan government to support energy transition and reinforce the state’s power infrastructure through robust battery energy storage solutions.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
