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Rajasthan Awards 1 GW/2 GWh Standalone BESS Tender at Record-Low Tariffs

In a landmark move for India’s energy storage sector, Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has awarded a 1 GW/2 GWh standalone Battery Energy Storage System (BESS) tender at record-low tariffs ranging between INR 1.775 lakh and INR 1.785 lakh per MW per month. This represents a 15% reduction from the previous lowest bid, setting a new benchmark for the Indian BESS market.

The tender, floated under the second Viability Gap Funding (VGF) scheme, attracted 50 bidders, showcasing robust investor confidence and growing competition in India’s utility-scale energy storage segment.

Key Winners and Allocations

A total of 11 developers secured capacities under this highly competitive auction, collectively bagging 1,000 MW/2,000 MWh of projects.

• Stockwell Solar Services Pvt. Ltd.: 200 MW/400 MWh @ INR 1.775 lakh/MW/month

• Oswal Cables Pvt. Ltd.: 100 MW/200 MWh @ INR 1.775 lakh/MW/month

• Micromax Informatics Ltd.: 50 MW/100 MWh @ INR 1.775 lakh/MW/month

• Patanjali Renewable Energy Pvt. Ltd.: 100 MW/200 MWh @ INR 1.775 lakh/MW/month

• RCRS Innovations Ltd.: 50 MW/100 MWh @ INR 1.775 lakh/MW/month

• Viviana Power Tech Ltd., Galaxy Mining & Royalties, and The Manda Projects Ltd.: 100 MW/200 MWh each @ INR 1.78 lakh/MW/month

• Mineralia Impex Pvt. Ltd.: 100 MW/200 MWh @ INR 1.785 lakh/MW/month

• Onward Solar Power Pvt. Ltd.: 100 MW/200 MWh @ INR 1.785 lakh/MW/month

• ST Electricals Pvt. Ltd.: 50 MW/100 MWh @ INR 1.785 lakh/MW/month

VGF Structure and Project Requirements

The VGF support will be provided under the Power System Development Fund (PSDF) and released in three phases:

• 20% at financial closure with a bank guarantee,

• 50% upon commercial operation, and

• 30?ter the first year of successful operation.

Each awarded BESS must ensure two complete charge–discharge cycles daily and maintain a minimum monthly availability of 95%.

A New Benchmark for India’s Energy Storage Sector

Industry experts have hailed the Rajasthan auction as a turning point for large-scale energy storage economics in India. The discovered tariffs are significantly lower than previous benchmarks — INR 2.18 lakh/MW/month (under construction in Rajasthan via NVVN) and INR 2.08 lakh/MW/month (in Andhra Pradesh with 30% VGF support).

The latest bid results also come with reduced VGF support of INR 18 lakh/MWh, compared to INR 27 lakh/MWh earlier, with land procurement under the developer’s scope and project connectivity at 220 kV substations.

Moreover, the auction has brought 10 new developers into India’s standalone BESS space, expanding the total number of active players to 33. Established leaders such as Reliance NU, Energrid, Pace Digitek, and ACME continue to drive large-scale deployments across the country.

Experts note that these competitive results highlight the maturing cost structure of energy storage systems and underline Rajasthan’s growing role as a frontrunner in India’s renewable energy and battery storage ecosystem.