RERC Approves Tariffs for 1000 MWh BESS in Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has approved the tariffs for 1000 MWh BESS in Rajasthan ensuring the transparency and alignment with the market norms.

Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) filed a petition for the approval of tariff discovered through a competitive bidding to set up a 500 MW / 1000 MWh standalone Battery Energy Storage System (BESS) in Rajasthan. The project also includes a green shoe option for an additional 500 MW/1,000 MWh of battery storage capacity. This expansion will be developed under a Build-Own-Operate (BOO) model and will receive viability gap funding (VGF) support from the central government.

The bidding process will be as per the guidelines issued by the Ministry of Power on March 10, 2022.

After technical and financial evaluation, four bidders were selected through a reverse auction out of a total of 11 participants. The selected bidders include JSW Neo Energy, Solarworld Energy Solutions, Rays Power Experts, and Oriana Power. The discovered tariffs for the BESS ranged from INR 2.21 lakh/MW/month to INR 2.24 lakh/MW/month.

Tariffs Follow the Govt Guidelines

The Commission reviewed the bidding process to ensure transparency and alignment with market norms. It concluded that it did follow the government guidelines, and that the final tariffs ranked among the lowest in recent comparable tenders across India.

Designed to enhance grid stability, support renewable energy integration, and lower power procurement costs for DISCOMs, the project is expected to deliver daily energy savings between INR 18 lakh and INR 1 crore by substituting costly peak-hour purchases with stored renewable energy.

Four strategic locations in Rajasthan were selected to maximise operational efficiency. Thus,  owing to their proximity to renewable energy sources and suitability for grid load balancing, the battery storage systems will be installed at Giral, Suratgarh, Heerapura, and Sakatpura.

The Commission approved the proposed tariffs for a 12-year duration and directed RRVUNL to maintain transparency by publishing details of successful bidders and their quoted tariffs. It also recommended that RRVUNL explore advanced battery technologies and submit regular implementation progress reports.