Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) has successfully completed the auction for a significant standalone battery energy storage project in the state, marking a major development for India’s energy storage sector. The project, designed for 500 MW/2,000 MWh capacity, was tendered in 2025 and attracted strong participation from multiple developers, highlighting the growing interest in battery energy storage across the country. These storage systems are primarily intended to support on-demand electricity usage and help balance peak and off-peak power requirements in Rajasthan.
The auction was conducted through a tariff-based competitive bidding process. Six bidders participated, including Patanjali Ayurved, which quoted for 250 MW/1,000 MWh, and five other companies—Ultravibrant Solar Energy, Rama Reflection India, MEC Power Solutions, Bhagwati Lacto Vegetarian Exports, and Diwakar Renewable & Infra—all of which quoted for 50 MW/200 MWh each. The lowest tariff discovered in the auction was ₹2.85 lakh per MW per month, demonstrating both competitive pricing and strong developer interest in the sector.
The project is planned under a Build, Own, Operate (BOO) model and will receive Viability Gap Funding (VGF) support to encourage competitive participation. The RfS details that the VGF will be disbursed in three tranches: 20% after financial closure, 50% at the Commercial Operation Date (COD), and the remaining 30% one year after COD. A bank guarantee will also be required to ensure the timely implementation and sustained operation of the project. This phased funding approach is aimed at promoting project completion on schedule and ensuring long-term reliability of the storage system, which is expected to play a key role in managing electricity demand and supporting grid stability in Rajasthan.
The project reflects India’s continued push toward large-scale energy storage solutions to complement renewable energy growth and meet the state’s energy needs efficiently.
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