Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) has successfully completed the auction for a major standalone battery energy storage project, marking a significant step forward for India’s energy-storage sector. The 500 MW/2,000 MWh project, tendered in August 2025, drew strong interest from multiple developers, underscoring the rising demand for large-scale storage to support on-demand electricity needs and balance peak and off-peak power requirements in the state.

The auction was conducted through a tariff-based competitive bidding process. Six bidders participated, including Patanjali Ayurved, which bid for 250 MW/1,000 MWh, while Ultravibrant Solar Energy, Rama Reflection India, MEC Power Solutions, Bhagwati Lacto Vegetarian Exports and Diwakar Renewable & Infra each bid for 50 MW/200 MWh. The lowest tariff discovered was Rs 285,000 per MW per month, reflecting both competitive pricing and strong sectoral interest.

The project will be developed under a Build, Own, Operate model and will receive Viability Gap Funding (VGF) to promote competitive participation. According to the Request for Selection, VGF will be released in three phases: 20 per cent after financial closure, 50 per cent at the Commercial Operation Date and the remaining 30 per cent one year after commissioning. Developers must also furnish a bank guarantee to ensure timely execution and sustained operation. This phased funding structure is designed to support on-schedule delivery and reliable long-term performance of the storage system, which will play a crucial role in grid stability and demand management across Rajasthan.

The initiative reflects India’s continued push to scale up energy-storage capacity alongside its expanding renewable-energy footprint, ensuring more efficient, reliable power delivery in high-demand states.