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Key Points

Rajasthan has taken a major step in renewable energy by approving a competitive tariff for its 1000 MWh battery storage project. The state aims to reduce peak-hour power costs and enhance grid stability with this initiative. Backed by Central VGF support, Rajasthan plans to expand its storage capacity to 4000 MWh soon. This move positions the state as a leader in India's green energy transition.

Key Points: Rajasthan Approves 1000 MWh Battery Storage Tariff for Green Energy Push

  • RERC approves record-low tariff for 1000 MWh BESS project
  • Rajasthan to save Rs 1 crore daily on peak power purchases
  • Central govt allocates 4000 MWh more with Rs 18 lakh/MWh VGF
  • State targets 18.5 GWh storage by 2028-29
2 min read

Rajasthan: RERC approves tariff for 1000 MWh battery energy storage system project

Rajasthan RERC greenlights India's lowest BESS tariff at Rs 2.21 lakh/MWh, boosting renewable storage with VGF support and 4000 MWh expansion.

"Rajasthan is moving decisively toward becoming a green energy hub – Hiralal Nagar, Energy Minister"

Jaipur, June 18

The Rajasthan Electricity Regulatory Commission (RERC) has approved the tariff for a 1000 megawatt-hour (MWh) standalone Battery Energy Storage System (BESS) project.

The RERC approved the tariff rates submitted by bidding energy companies, paving the way for the rapid development of energy storage infrastructure in the state.

The project will be implemented by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) under the Build-Own-Operate (BOO) model with Viability Gap Funding (VGF) support from the Government of India.

Minister of State for Energy (Independent Charge), Hiralal Nagar, informed that leading companies participated in the competitive bidding process. The approved tariff ranged from Rs. 2.21 lakh to Rs. 2.24 lakh per MWh per month, the lowest rate in the country so far.

The RERC has endorsed the tender process conducted by RRVUNL as fair, transparent, and in accordance with market standards. The process also aligns with the Central government’s guidelines on battery storage systems, aimed at ensuring grid stability and effective integration of renewable energy.

Hiralal Nagar emphasised that Rajasthan is moving decisively toward becoming a green energy hub. The approved BESS project will allow energy generated from solar and wind sources to be stored and utilised as per demand, significantly enhancing energy efficiency.

The Central government is providing VGF assistance of Rs 27 lakh per MWh for these projects. BESS installations are planned at select strategic sites, including grid substations in Jaipur and Kota, and power stations in Suratgarh and Giral, chosen for their technical and operational suitability.

The implementation of BESS will help reduce the dependency on expensive peak-hour power purchases by distribution companies (DISCOMs), potentially saving up to Rs 1 crore per day.

Chairman and Managing Director of RRVUNL, Devendra Shringi, said that the Union Ministry of Power has recently allocated an additional 4,000 MWh BESS capacity to Rajasthan.

Under this new allocation, VGF of Rs 18 lakh per MWh will be provided from the Power System Development Fund. He further stated that Rajasthan is fast emerging as a national leader in battery energy storage. The state government has set a target of developing 18.5 GWh of battery storage capacity by 2028-29.

In addition to the 1,000 MWh BESS project by RRVUNL, separate tenders have been floated by NTPC Vidyut Vyapar Nigam for another 1,000 MWh project. This aligns with the state’s budget announcement to establish 2,000 MWh of battery energy storage capacity, which is expected to attract investments of around Rs. 2,000 crore.

- IANS

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Reader Comments

Here are 6 diverse Indian perspective comments for the Rajasthan BESS project article:
R
Rajesh K.
Great initiative by Rajasthan government! 👏 Energy storage is the missing piece in our renewable energy puzzle. With solar power abundant in Rajasthan, this will help reduce wastage and make power supply more reliable. Hope other states follow this model soon.
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Priya M.
The cost savings of ₹1 crore per day sounds impressive, but will this actually translate to lower electricity bills for consumers? Or will DISCOMs keep the savings? Government should ensure common people benefit from such projects too.
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Amit S.
Rajasthan becoming energy hub is good news for job creation! But what about environmental impact of these battery systems? Lithium mining and disposal is not eco-friendly. Government should invest in research for greener alternatives too.
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Sunita R.
As someone from Jaipur, I'm happy to see my state leading in renewable energy. But implementation is key - hope they maintain quality standards unlike some solar projects where equipment failed within few years. Proper maintenance is must!
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Vikram J.
₹2000 crore investment is huge money! While the project is good, hope there's no corruption in tendering process. Recent scams in other states show we need strict monitoring. Transparency in VGF usage is crucial for public trust.
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Neha P.
Finally some concrete steps towards energy security! 👌 This will help industries in Rajasthan become more competitive with reliable power supply. Maybe next they can focus on improving last-mile distribution in rural areas too.

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