The Rajasthan Electricity Regulatory Commission (RERC) has approved tariffs for 500 MW/1000 MWh of standalone Battery Energy Storage Systems (BESS) in the State, marking a significant step toward enhancing renewable energy integration and grid stability. The project is being implemented by NTPC Vidyut Vyapar Nigam Limited (NVVN), which was nominated by the Ministry of Power under the Viability Gap Funding (VGF) scheme. The initiative aims to accelerate the deployment of energy storage solutions, supporting the State’s energy transition while ensuring reliability and efficient management of renewable energy surpluses.
NVVN conducted a tariff-based competitive bidding process, including an e-reverse auction on June 21, 2025. Five successful bidders were selected through this process. The monthly tariffs per MW discovered through the auction were ₹216,000 for Solar91 Cleantech Limited, ₹218,700 for Rays Power Experts Pvt Ltd, ₹218,998 for Stockwell Solar Services Pvt Ltd, ₹218,999 for Oriana Power Ltd, and ₹219,000 for Inox Renewable Solutions Ltd. These rates were finalised following the Commission’s evaluation and consideration of competitive bidding results.
During the proceedings, Rajasthan Urja Vikas and IT Services Limited (RUVITL) requested a reduction in the trading margin from 7 paise per unit to 2 paise per unit, citing previous Commission observations that a high margin could increase the burden on end consumers. NVVN, however, stated that it could not revise the margin, and both parties subsequently signed the Battery Energy Storage Sale Agreement (BESSA) on August 26, 2025, maintaining the 7 paise per unit margin.
The Commission emphasised that BESS projects play a critical role in managing renewable energy surpluses by discharging stored energy during peak-demand periods. This approach reduces the need for expensive short-term power purchases, resulting in cost savings for DISCOMs and consumers. The procurement also aligns with Rajasthan’s Energy Storage Obligation (ESO) trajectory, which mandates a 2.0% storage target for the 2025-26 financial year.
The State Government intervened to ensure the timely implementation of the projects, prioritising their deployment. NVVN confirmed that the selected project sites in the Jaisalmer–Barmer–Jodhpur belt are strategically located to minimise transmission congestion and support efficient energy flow.
In its final order, the Commission approved the discovered tariffs and directed RUVITL to monitor project progress through quarterly reports. Additionally, the Commission encouraged the adoption of advanced, AI-enabled BESS technologies in future projects to maximise operational efficiency, safety, and performance.
With this approval, Rajasthan is set to strengthen its renewable energy infrastructure, improve grid reliability, and move closer to achieving its energy storage and sustainability targets. The BESS deployment is expected to provide a dependable solution for renewable energy management while supporting cost-effective electricity supply for the State’s growing energy demand.
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