After continuously reigning supreme in solar power generation, Rajasthan has achieved yet another milestone. This time the state has been able to lock lowest ever tariff in the range of Rs 1.775 lakh per MW per month to Rs 1.785 lakh per MW per month in the Battery Energy Storage System (BESS).
The state power generation company – Rajasthan Rajya Utpadan Nigam Limited (RVUNL) has completed the auction for its 1000 MW/2,000 MWh standalone Battery Energy Storage System (BESS) conducted through tariff-based competitive bidding.
The bid received strong participation from multiple developers, indicating the growing interest in battery energy storage linked with renewable energy. As many as 11 companies were successful in bidding process. Among the bidders, five companies quoted the lowest tariff and became the L1 bidders. Stockwell Solar emerged as the largest winner with 200 MW/400 MWh capacity at a tariff of ₹1.775 lakh per MW per month. Oswal Cables also quoted the same tariff for a 100 MW/200 MWh capacity, while Micromax Informatics secured 50 MW/100 MWh at the same rate. Patanjali Renewables and RCRS Innovations matched the lowest tariff with capacities of 100 MW/200 MWh and 50 MW/100 MWh, respectively.
State to attract investment of Rs 6000 crore
After the successful bidding process, Rajasthan chief minister Bhajan Lal Sharma said that the state will attract an investment for Rs 6000 crore for this 6000 MW BESS project.
“These BESS projects will be completed by November 2027. These projects will be vital in ensuring grid stability and help in management during peak demand. Battery storage will also bail out power companies from buying high price power during peak hours,” Sharma said.
Tender was floated in June 2025
The tender for this project was issued in June 2025, and the implementation will follow a Build, Own, and Operate (BOO) model through global competitive bidding supported by Viability Gap Funding (VGF). The entire project capacity will be connected to the State Transmission Utility (STU), with RVUNL acting as the intermediary procurer. Developers were selected through an e-bidding process followed by an e-reverse auction.
The VGF support will be provided under the Power System Development Fund (PSDF) scheme and will be released in three phases: 20% upon financial closure with a bank guarantee, 50% at the commercial operation date, and the remaining 30% after the first year of operation. Each BESS system must be capable of two full charge and discharge cycles per day and maintain a minimum monthly availability of 95%. This initiative is expected to enhance grid reliability, promote renewable energy integration, and strengthen Rajasthan's position in India's growing energy storage market.
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