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Rajasthan Approves Tariff for 2 GWh Standalone Battery Energy Storage Projects

The Rajasthan Electricity Regulatory Commission has approved a tariff of Rs 285,000 (about $3,106)/MW per month for 500 MW / 2,000 MWh standalone Battery Energy Storage System (BESS) projects in Rajasthan. The tariff was determined through a competitive bidding process conducted by Rajasthan Rajya Vidyut Utpadan Nigam Limited. These projects are designed to provide four hours of energy storage capacity, helping stabilize the power grid and support renewable energy integration.

Through the bidding process, six developers were selected, and their project allocations were formally approved by the Commission. The regulator also instructed RVUNL to publish the names of the successful bidders and the discovered tariffs on its website for 30 days after the execution of Battery Energy Storage Purchase Agreements (BESPA).

Background

The state’s Energy Department appointed RVUNL as the implementing agency for battery storage projects on October 25, 2024. Later, the Ministry of Power allocated 2,000 MWh of BESS capacity to Rajasthan under the Power System Development Fund (PSDF) with viability gap funding (VGF) of Rs 1.8 million per MWh. On June 17, 2025, RVUNL was additionally assigned responsibility for implementing an expanded BESS capacity of 5,000 MWh.

Under the VGF framework, battery storage projects must have at least two hours of storage duration, be commissioned within 18 months of BESPA signing, and operate under contracts lasting 12 to 15 years.

To implement the plan, RVUNL launched a 500 MW / 2,000 MWh BESS project with four-hour storage through a tariff-based global competitive bidding process.

Commission’s Analysis

RVUNL submitted benchmarking data showing that the tariff discovered in this tender was significantly lower than similar projects in other states. For comparison, tariffs in recent tenders included Rs 359,000/MW/month in a tender by SJVN Limited in Uttar Pradesh, Rs 440,000/MW/month in a project by Bihar State Power Generation Company Limited in Bihar, Rs 441,000/MW/month in a tender by Solar Energy Corporation of India Limited in Kerala, and Rs 434,000/MW/month in a project by NHPC Limited in Kerala.

The Commission noted that the tender process followed the BESS procurement guidelines issued by the Ministry of Power and attracted participation from 27 bidders, indicating strong market competition. It also observed that the Rs 285,000/MW/month tariff is among the lowest discovered so far for standalone four-hour battery storage projects operating with one cycle per day.

Additionally, the regulator referred to the energy storage obligation targets under the RERC Renewable Purchase Obligation Regulations, 2023, which require utilities in Rajasthan to gradually increase energy storage procurement from 1.5% in 2024–25 to 4% by 2029–30.

Based on these considerations, the Commission concluded that the discovered tariff is reasonable and consistent with current market trends, supporting the state’s efforts to expand large-scale energy storage infrastructure alongside renewable energy development.