The Rajasthan Electricity Regulatory Commission (RERC) has adopted a tariff of ₹285,000 (~$3,106.52)/MW/month for 500 MW/2,000 MWh standalone battery energy storage systems (BESS).

The tariff was discovered through the tender floated by Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL).

The projects will provide four-hour storage capacity.

Six developers were selected through the bidding process, and their allocations were adopted by the Commission.

The Commission also directed RVUNL to disclose the names of successful bidders and tariffs on its website for 30 days after execution of battery energy storage purchase agreements (BESPA).

Background

Rajasthan’s Energy Department nominated RVUNL as the BESS implementing agency on October 25, 2024. The Ministry of Power allocated 2,000 MWh of BESS capacity to the state under the power system development fund, with viability gap funding (VGF) of ₹1.8 million (~$19,620.13)/MWh. On June 17, 2025, RVUNL was further designated as the implementing agency for an expanded capacity of 5,000 MWh.

Under the VGF program, projects must have a minimum storage duration of two hours, be commissioned within 18 months of BESPA execution, and have a contract tenure of 12 to 15 years.

RVUNL initiated a 500 MW/2,000 MWh BESS project with four-hour storage through a tariff-based global competitive bidding process.

RVUNL submitted benchmarking data showing higher tariffs in similar tenders, including ₹359,000 (~$3,913.13)/MW/month in an SJVN tender in Uttar Pradesh, ₹440,000 (~$4,796.03)/MW/month in a BSPGCL tender in Bihar, ₹441,000 (~$4,806.93)/MW/month in a SECI tender in Kerala, and ₹434,000 (~$4,730.63)/MW/month in an NHPC tender in Kerala.

Commission’s Analysis

The Commission observed that the tender followed the Ministry of Power’s BESS procurement guidelines. The participation from 27 bidders indicated adequate competition.

The regulator compared the discovered tariff of ₹285,000 (~$3,106.52)/MW/month with tariffs in similar tenders and noted that the tariff discovered in the RVUNL tender is among the lowest for standalone four-hour BESS projects with one cycle per day.

It also referred to the state’s energy storage obligation trajectory under the RERC Renewable Purchase Obligation Regulations, 2023, which requires storage procurement to increase from 1.5% in 2024-25 to 4% by 2029-30.

Based on these findings, the Commission concluded that the tariff is reasonable and aligned with prevailing market conditions.

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