The Rajasthan Electricity Regulatory Commission (RERC) has approved the tariff discovered through competitive bidding for setting up 1,000 MW/2,000 MWh of standalone battery energy storage systems (BESS).

The approved tariffs range between ₹177,500 (~$1,968)/MW/month and ₹178,500 (~$1,979)/MW/month.

The Commission directed Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) to publicly disclose the names of the successful bidders and their respective tariffs on its website for 30 days after execution of the battery energy storage purchase agreements (BESPA).

Background

RVUNL issued a tender for setting up 1,000 MW/2,000 MWh of standalone BESS. The projects envisaged two-hour storage systems with an average of 1.5 to 2 cycles per day.

A total of 50 bidders participated in the tender process. Forty-eight bidders were found to be techno-commercially qualified. Price bids were opened in October 2025, followed by an electronic reverse auction.

After excluding the highest bidders and one bidder whose bank guarantee could not be confirmed, 11 bidders emerged successful.

RVUNL submitted that the bidding process complied with the Ministry of Power’s guidelines for procurement and utilization of BESS. It argued that the discovered tariffs were competitive, reasonable, and beneficial for consumers while supporting Rajasthan’s renewable energy goals.

The respondents, including Rajasthan Urja Vikas and IT Services, the state distribution companies, and Rajasthan Rajya Vidyut Prasaran Nigam, supported the petition.

Rajasthan Urja Vikas and IT Services confirmed that it had already executed the BESPA on behalf of the discoms and raised no objections.

The transmission utility confirmed that the grid substation locations allocated to the successful bidders were suitable and approved.

None of the successful bidders objected to the petition.

Commission’s Analysis

The Commission noted that the tender was issued and conducted in accordance with the central government’s notified guidelines. It was observed that the bidding process involved a large number of participants and included technical qualification, financial evaluation, and an e-reverse auction.

The regulator found that no stakeholder had raised concerns regarding transparency or procedural lapses. Based on these factors, it concluded that the bidding process was fair, transparent, and compliant with Section 63 of the Electricity Act.

The Commission then compared the tariffs with tariffs adopted in other recent standalone battery storage cases. It observed that tariffs in similar projects elsewhere ranged between ₹216,000 (~$2,395)/MW/month and ₹224,000 (~$2,483)/MW/month. Against this backdrop, the tariffs discovered in Rajasthan were among the lowest seen in recent battery storage procurements.

It also took note of the role of BESS in supporting renewable energy integration, improving grid stability, and reducing reliance on conventional generation sources.

The Commission further referred to the energy storage obligation trajectory, which mandates increasing storage deployment up to 4% by the financial year 2029-30. It held that the procurement of 1,000 MW/ 2,000 MWh of BESS capacity was justified.

Last December, RERC approved tariffs ranging from ₹216,000 (~$2,514) to ₹219,000 (~$2,469)/MW/month for NTPC Vidyut Vyapar Nigam’s 500 MW/1,000 MWh standalone BESS in Rajasthan.

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