The Rajasthan Electricity Regulatory Commission has approved the adoption of tariffs for a large-scale Battery Energy Storage Systems (BESS) project proposed by Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL). The project, aimed at enhancing grid stability and supporting renewable energy integration in the state, involves setting up 500 MW/1,000 MWh of standalone BESS capacity under a global competitive bidding process. An additional green shoe option for another 500 MW/1,000 MWh capacity has also been included. This project will be implemented under the Build-Own-Operate (BOO) model and supported by Viability Gap Funding (VGF) from the central government.
The bidding process was conducted transparently following guidelines issued by the Ministry of Power. A total of 11 bidders participated, and four developers were awarded capacities through a reverse auction. Solarworld Energy Solutions Limited, Oriana Power Limited, Rays Power Experts Private Limited, and JSW Neo Energy were selected to implement BESS at strategic locations, including RVPN substations and thermal power stations at Suratgarh and Giral.
The tariffs discovered ranged from ₹2.21 to ₹2.24 lakh per MW per month. These rates were found to be among the lowest in India for standalone BESS projects and were considered market-aligned when benchmarked against similar projects. The Commission observed that the competitive pricing reflects declining battery costs and increased market interest.
RRVUNL has been designated as the implementing agency for this project and will also manage tendering, compliance, disbursement of VGF, and signing of power purchase agreements. The BESS installations will deliver 2 million units of electricity per day, primarily during peak hours, reducing the need for costly short-term market purchases. With the stored renewable energy, the delivered cost is estimated between ₹4.56 and ₹5.06 per unit, compared to exchange rates of ₹6 to ₹10 per unit. This results in daily savings of up to ₹1 crore for the DISCOMs.
The selected sites, such as Giral and Suratgarh thermal stations and RVPN substations in Heerapura and Sakatpura, were chosen based on grid connectivity, renewable energy availability, and operational benefits. The project is aligned with the state’s targets under the Energy Storage Obligation trajectory and is expected to provide cost-effective, clean energy during peak demand hours.
The Commission approved the tariffs and directed RRVUNL to submit executed agreements and disclose tariff details on its website. The Commission also emphasized exploring advanced technologies like AI-enabled BESS in future projects and asked RRVUNL to submit quarterly progress reports to ensure transparency and timely execution.
The order marks a significant step toward strengthening Rajasthan’s renewable energy infrastructure and achieving national clean energy goals.
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