The Rajasthan Electricity Regulatory Commission (RERC) has issued an important order approving the adoption of tariffs for a large standalone Battery Energy Storage System (BESS) project with a capacity of 500 MW/2000 MWh in the state. The petition for the project was filed by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL). The decision represents a major step in strengthening Rajasthan’s power system and supporting the growing share of renewable energy in the state.
The project will be implemented under the Build-Own-Operate (BOO) model. It is part of the broader national effort to address the challenges created by the variable nature of renewable energy sources such as solar and wind. Since renewable power generation fluctuates depending on weather conditions, battery storage systems are increasingly being deployed to store excess electricity and release it when demand rises. Large-scale storage projects like this are expected to play a crucial role in improving grid stability and ensuring a reliable power supply.
To support the development of energy storage infrastructure, the project will receive financial assistance under the Government of India’s Viability Gap Funding (VGF) scheme. The scheme provides financial support of up to ₹18 lakh per MWh of storage capacity. This subsidy is designed to make battery storage projects more economically viable and accelerate the integration of renewable energy into the grid. By reducing project costs, the VGF scheme encourages private sector participation in advanced energy technologies.
RVUNL conducted a global competitive bidding process to select developers for the project. The tender attracted strong industry participation, with 27 companies submitting bids. After the technical evaluation, the eligible bidders participated in an electronic reverse auction. At the end of the bidding process, six companies emerged as successful bidders, each quoting the same lowest tariff of ₹2,85,000 per MW per month.
The companies that secured the contracts include M/s Ultra Vibrant Solar Energy Private Limited, M/s Rama Reflection India Private Limited, M/s Patanjali Ayurved Limited, M/s Mecpower Solutions Limited, M/s Bhagwati Lacto Vegetarian Exports Private Limited, and M/s Diwakar Renewable & Infra Private Limited. Among them, Patanjali Ayurved Limited secured the largest share of the project with a capacity allocation of 250 MW.
While examining the bidding results, the Commission noted that the discovered tariff is highly competitive when compared with similar energy storage tenders in other states. Recent projects in Uttar Pradesh, Bihar, and Kerala reported tariffs ranging between ₹3.59 lakh and ₹4.41 lakh per MW per month. In comparison, the ₹2.85 lakh tariff discovered in Rajasthan indicates improved cost efficiency and growing competition in the battery storage sector.
The Commission also observed that the project will help Rajasthan meet its Energy Storage Obligation (ESO) targets. Under national renewable energy policies, distribution utilities are required to procure a certain percentage of their electricity from storage-based resources. The ESO target starts at 1.5 percent in 2024-25 and is expected to increase to 4 percent by 2030.
To secure the viability gap funding support, the Battery Energy Storage Purchase Agreements (BESPA) must be signed by March 8, 2026. The Commission has directed RVUNL to publish the details of the successful bidders on its official website and submit the executed agreements for regulatory records. The project is expected to strengthen Rajasthan’s electricity grid and serve as a model for cost-effective battery storage deployment across India.
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