Rajasthan Approves Tariffs For 1000 MW/2000 MWh Battery Storage Project After Competitive Bidding

The Rajasthan Electricity Regulatory Commission has issued a new order adopting the tariffs for a major standalone battery energy storage project planned in the state. The order covers a 1,000 MW and 2,000 MWh Battery Energy Storage System that will be developed in different locations to support the growing renewable power network in Rajasthan. The initiative has been started by the Rajasthan Rajya Vidyut Utpadan Nigam Ltd. after completing a global competitive bidding process. The focus of the project is to improve grid stability as the share of renewable energy continues to rise and the state needs flexible power support during peak demand and low-generation hours.

The project will follow the Build-Own-Operate model, which means the selected developers will build the storage systems, operate them, and supply their output under long-term agreements. The Ministry of Power is supporting the project through the Viability Gap Funding scheme to make the storage systems financially viable. The funding support is about ₹18 lakh per MWh and comes from the Power System Development Fund. The state had already issued instructions to speed up storage development because renewable energy generation changes throughout the day. Storage systems like these help maintain a steady supply and reduce stress on the grid.

The tender for this project was issued in June 2025, and it received strong interest from the market. A total of 50 bidders took part in the process, and 48 of them qualified after the techno-commercial evaluation. The final selection was completed through an e-Reverse Auction that helped secure competitive tariffs. In the end, 11 bidders were successful. The tariffs that emerged from the auction range between ₹1,77,500 and ₹1,78,500 per MW per month. These rates are significantly lower than tariffs of similar projects in other regions, which were between ₹2,16,000 and ₹2,24,000 per MW per month. The Commission pointed out that this difference shows the strong competition and the effectiveness of the bidding process.

The successful bidders have been assigned different capacities across multiple sites. Stockwell Solar Services Pvt. Ltd. has secured 200 MW at Chhattargarh. Oswal Cable Ltd. has been awarded 100 MW at Badnu. Patanjali Renewable Energy Pvt. Ltd. will develop 100 MW at Badi Sid. Viviana Power Tech Ltd. has received 100 MW at Bhopalgarh. Galaxy Mining and Royalties Ltd. and MANDA Projects Pvt. Ltd. will each develop 100 MW at Bhawad and Badnu. Smaller capacity allocations of 50 MW each have been awarded to Micromax Informatics Ltd., RCRS Innovations Ltd., Mineralia Impex Private Ltd., and S.T. Electricals Pvt. Ltd. These developers will now proceed with the next steps required for project execution.

The Commission stated that the entire process followed all the guidelines issued by the Ministry of Power and maintained fairness and transparency. It also said that the procurement is fully aligned with the Rajasthan Renewable Purchase Obligation Regulations, which require increasing energy storage obligations up to 2030. These obligations are meant to ensure that the state builds enough storage to support renewable energy growth.

The next step is for RVUNL to sign Battery Energy Storage Purchase Agreements with the developers. The power stored and supplied by these systems will be delivered to state distribution companies through the Rajasthan Urja Vikas and IT Services Ltd. The Commission has also instructed RVUNL to publish the list of successful bidders and their tariffs on its website for 30 days. After signing the agreements, RVUNL must also submit the final documents to the Commission for official records.