Rajasthan GENCO Issues 500 MW/2,000 MWh BESS Tender With VGF

Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL) has announced its second standalone Battery Energy Storage System (BESS) tender under the second viability gap funding (VGF) scheme, and its fourth overall. The second VGF scheme has already seen 12 GWh worth of tenders issued. RRUVNL has sought bids till September 23, 2025. 

The latest tender seeks to develop 500 MW/2,000 MWh BESS projects, with a minimum bid size of 200 MWh (50 MW × 4 hours) and an incremental bid size of at least 50 MW. The total 500 MW/2,000 MWh capacity will be spread across multiple locations.

Scope of Work

Under the scope of work, the tender explained that the VGF will be disbursed to eligible projects in three tranches: 20% at financial closure upon submission of a bank guarantee, 50% at the commercial operation date (COD), and the remaining 30% after the first year of operation from COD.

The proposed projects will be connected to the 400 kV Jaisalmer-2 substation. Land, if available, will be provided by RVUNL at actual cost. The tender expects the developers to arrange their own land, with RVUNL offering support for identification and acquisition. In such cases, it also expects developers to submit a lease, sub-lease, or purchase agreement covering at least the full term of the Battery Energy Storage Purchase Agreement (BESPA) before financial closure.

The tender also added, "The 2,000 MWh (500 MW × 4 hours) system will have a power rating of 500 MW — the maximum active output and input power at the delivery point. The energy rating will be the dispatchable capacity at commercial operation date (COD), factoring in battery degradation."

Additionally, the RRUNL tender also explained that the BESS system is required to be available for one operational cycle per day, defined as a full charge-discharge cycle. These requirements will apply to the entire project capacity guaranteed to be off-taken by RVUNL.