Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL) has awarded its 1 GW/2 GWh standalone battery energy storage system (BESS) tender under the viability gap funding (VGF) scheme to eleven developers.
The tender achieved a record-low tariff of ₹1.775 lakh per MW per month (around $1,999.45/MW/month), marking a 15% drop from Andhra Pradesh’s previous benchmark tariff of ₹2.08 lakh/MW/month. This reduction reflects competitive bidding despite limited VGF support and the rising cost environment for BESS projects.
The tender saw participation from 50 bidders, indicating strong interest in India’s emerging energy storage sector. The auction was conducted under the second VGF scheme and required bidders to manage land, connect to 220 kV infrastructure, and comply with environmental standards.
The competitive landscape enabled a lower tariff discovery despite concerns over potential cost escalations, highlighting the increasing confidence of developers in the BESS market.
Most of the eleven winners were new entrants to the BESS sector. The awarded capacities ranged from 50 MW/100 MWh to 200 MW/400 MWh, spreading across both small and medium-scale projects.
The lowest tariff of ₹1.775 lakh/MW/month was quoted by Stockwell Solar (200 MW/400 MWh), Oswal Cables (100 MW/200 MWh), Patanjali Renewables (100 MW/200 MWh), Micromax Informatics (50 MW/100 MWh), and RCRS Innovations (50 MW/100 MWh).
The rest of the tendered capacity was allotted at a slightly higher tariff of ₹1.785 lakh/MW/month to Viviana Power Tech (100 MW/200 MWh), Galaxy Mining and Royalties (100 MW/200 MWh), Manda Projects (100 MW/200 MWh), Mineralia Impex (50 MW/100 MWh), Onward Solar (100 MW/200 MWh), and S T Electricals (50 MW/100 MWh).
This balanced allocation ensures participation from both new and relatively experienced players in the BESS market, supporting sectoral growth and diversification.
The Rajasthan BESS tender demonstrates India’s commitment to expanding grid flexibility and integrating renewable energy efficiently. The competitive pricing achieved may encourage other states to adopt similar BESS frameworks, accelerating storage deployment nationwide and supporting the stability of renewable power generation.
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The RVUNL 1 GW/2 GWh BESS tender reflects the growing interest of new entrants in India’s energy storage sector and sets a new cost benchmark. With eleven developers securing projects, Rajasthan moves closer to strengthening grid reliability and renewable integration while creating a scalable model for future battery storage tenders.
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Published on: Oct 9, 2025, 12:14 PM IST
Suraj Uday Singh
Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.
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