Rajasthan: RERC approves tariff for 1000 MWh battery energy storage system project

Time of India

19-06-2025

The
Rajasthan Electricity Regulatory Commission
(
RERC
) has approved the tariff for a 1000 megawatt-hour (MWh) standalone
Battery Energy Storage System
(BESS) project.
The RERC approved the tariff rates submitted by bidding energy companies, paving the way for the rapid development of energy storage infrastructure in the state.
The project will be implemented by Rajasthan Rajya Vidyut Utpadan Nigam Limited (
RRVUNL
) under the Build-Own-Operate (BOO) model with Viability Gap Funding (VGF) support from the Government of India.
Minister of State for Energy (Independent Charge),
Hiralal Nagar
, informed that leading companies participated in the competitive bidding process. The approved tariff ranged from Rs. 2.21 lakh to Rs. 2.24 lakh per MWh per month, the lowest rate in the country so far.
The RERC has endorsed the tender process conducted by RRVUNL as fair, transparent, and in accordance with market standards. The process also aligns with the Central government's guidelines on battery storage systems, aimed at ensuring grid stability and effective integration of renewable energy.
Hiralal Nagar emphasised that Rajasthan is moving decisively toward becoming a green energy hub. The approved BESS project will allow energy generated from solar and wind sources to be stored and utilised as per demand, significantly enhancing energy efficiency.
The Central government is providing VGF assistance of Rs 27 lakh per MWh for these projects. BESS installations are planned at select strategic sites, including grid substations in Jaipur and
Kota
, and power stations in
Suratgarh and Giral
, chosen for their technical and operational suitability.
The implementation of BESS will help reduce the dependency on expensive peak-hour power purchases by distribution companies (DISCOMs), potentially saving up to Rs 1 crore per day.
Chairman and Managing Director of RRVUNL, Devendra Shringi, said that the
Union Ministry of Power
has recently allocated an additional 4,000 MWh BESS capacity to Rajasthan.
Under this new allocation, VGF of Rs 18 lakh per MWh will be provided from the
Power System Development Fund
. He further stated that Rajasthan is fast emerging as a national leader in battery energy storage. The state government has set a target of developing 18.5 GWh of battery storage capacity by 2028-29.
In addition to the 1,000 MWh BESS project by RRVUNL, separate tenders have been floated by NTPC Vidyut Vyapar Nigam for another 1,000 MWh project. This aligns with the state's budget announcement to establish 2,000 MWh of battery energy storage capacity, which is expected to attract investments of around Rs. 2,000 crore.