RVUNL Concludes 1 GW/2 GWh BESS Auction With Record-Low Tariff Of ₹1.775

Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has completed the auction for its 1000 MW/2,000 MWh standalone Battery Energy Storage System (BESS) project in Rajasthan. The auction, conducted through tariff-based competitive bidding, received strong participation from multiple developers, indicating the growing interest in battery energy storage linked with renewable energy. The lowest tariff discovered during the process was ₹1.775 lakh per MW per month, with bids going up to ₹1.785 lakh. A total of 11 winners emerged from this auction, marking a significant milestone for India’s energy storage sector.

Among the bidders, five companies quoted the lowest tariff and became the L1 bidders. Stockwell Solar emerged as the largest winner with 200 MW/400 MWh capacity at a tariff of ₹1.775 lakh per MW per month. Oswal Cables also quoted the same tariff for a 100 MW/200 MWh capacity, while Micromax Informatics secured 50 MW/100 MWh at the same rate. Patanjali Renewables and RCRS Innovations matched the lowest tariff with capacities of 100 MW/200 MWh and 50 MW/100 MWh, respectively.

Other notable winners included Galaxy Mining & Royalties, which won 100 MW/200 MWh at a tariff of ₹1.78 lakh per MW per month. Manda Projects and Mineralia Impex also secured projects at the same tariff, with Manda Projects winning 100 MW/200 MWh and Mineralia Impex bagging 50 MW/100 MWh. Onward Solar and S T Electricals won at the highest discovered tariff of ₹1.785 lakh per MW per month, with 100 MW/200 MWh and 50 MW/100 MWh, respectively.

The tender for this project was issued in June 2025, and the implementation will follow a Build, Own, and Operate (BOO) model through global competitive bidding supported by Viability Gap Funding (VGF). The entire project capacity will be connected to the State Transmission Utility (STU), with RVUNL acting as the intermediary procurer. Developers were selected through an e-bidding process followed by an e-reverse auction.

The VGF support will be provided under the Power System Development Fund (PSDF) scheme and will be released in three phases: 20% upon financial closure with a bank guarantee, 50% at the commercial operation date, and the remaining 30% after the first year of operation. Each BESS system must be capable of two full charge and discharge cycles per day and maintain a minimum monthly availability of 95%. This initiative is expected to enhance grid reliability, promote renewable energy integration, and strengthen Rajasthan’s position in India’s growing energy storage market.