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

Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has awarded the state’s standalone 1GW/2GWh Battery Energy Storage System (BESS) tender under the second VGF scheme at record-low tariffs between INR 1.775 lakh and INR 1.785 lakh per MW per month, marking a 15 percent drop from the previous L1 benchmark.

The e-auction attracted 50 bidders, reflecting intense competition and strong market interest. A total of 11 developers emerged as winners, collectively securing 1,000 MW/2,000 MWh of capacity. Stockwell Solar Services Pvt Ltd secured the largest allocation with 200 MW/400 MWh at INR 1.775 lakh per MW per month. Oswal Cables received 100 MW/200 MWh, Micromax Informatics Ltd 50 MW/100 MWh, Patanjali Renewable Energy Pvt Ltd 100 MW/200 MWh, and RCRS Innovations Ltd. 50 MW/100 MWh, all at the same lowest tariff. Viviana Power Tech Ltd, Galaxy Mining & Royalties, and The Manda Projects Ltd each won 100 MW/200 MWh at INR 1.78 lakh per MW per month, while Mineralia Impex secured 100 MW/200 MWh at INR 1.785 lakh. Onward Solar Power and ST Electricals received 100 MW/200 MWh and 50 MW/100 MWh respectively, both at INR 1.785 lakh.

The VGF support will be provided under the Power System Development Fund (PSDF) scheme and released in three phases viz. 20 percent upon financial closure with a bank guarantee, 50 percent at the commercial operation date, and the remaining 30 percent after the first year of operation. Each BESS system must perform two full charge-discharge cycles daily and maintain a minimum monthly availability of 95 percent.

Experts noted that this auction sets a new benchmark, significantly lower than previous figures in Rajasthan and Andhra Pradesh, where the earlier L1 tariffs stood at INR 2.18 lakh per MW per month (NVVN, under construction) and INR 2.08 lakh per MW per month (with 30 percent VGF support), respectively. The current award includes INR 9 lakh/MWh lower VGF support (INR 18 lakh/MWh), with land provided under the developer’s scope and projects connected to 220 kV substations.

Experts further noted that the tender has also introduced 10 new players to India’s standalone BESS sector, bringing the total number of companies with such projects to 33, with Reliance NU, Energrid, Pace Digitek, and ACME continuing to lead ongoing deployments.