Rajasthan Floats 500 MW/1000 MWh Battery Energy Storage Tender with Greenshoe Option

The Rajasthan government has issued a significant tender for a 500 MW/1000 MWh Battery Energy Storage System (BESS) with an additional greenshoe option for another 500 MW/1000 MWh capacity. This development marks a pivotal step in the state’s transition toward renewable energy integration and grid modernization.

Key Highlights of the Tender

(1) Project Scope and LocationT: he BESS project is strategically distributed across four locations in Rajasthan, Two sites at RVUNL generating stations in Barmer and Suratgarh.

Two sites at RVPNL GIS substations. Each location has a maximum allocation of 17,500 sqm for a 125 MW/250 MWh capacity.

(2) Business Model and Obligations: The project will operate under a Build-Own-Operate (BOO) model.

(3) The BESS developers will handle the system’s charging through RVUNL, accounting for any conversion losses.

(4) PPA and Operational Terms: The Power Purchase Agreement (PPA) duration is 12 years, extendable at a 50% discounted tariff thereafter.

The system is required to operate on two cycles per day, ensuring robust energy throughput for the grid.

(5) Performance Benchmarks

Minimum 95% monthly availability is mandated, with penalties set at 2 times the PPA tariff for any shortfall. The system must achieve a 90% monthly roundtrip efficiency (RtE), with incentives and penalties linked to performance levels:

RtE < 75%: Penalty at 1.5 times the average Market Clearing Price (MCP) during peak hours, and no tariff payment for the month.

RtE 75%-90%: Penalty at 1.5 times MCP.

RtE > 90%: Incentive of ₹0.50/unit for exceeding targets.

Viability Gap Funding (VGF):

To enhance financial feasibility, the project offers a VGF of ₹27 lakhs/MWh or 30% of the capital cost, whichever is lower. The funding will be disbursed in tranches: 10% upon financial closure, 45% on commissioning,10% annually for three years after commissioning.

Commissioning and Financial Deadlines: The project must achieve financial closure within 9 months from the effective date of the BESPA.

The commissioning period is 18 months, with a maximum delay of 6 months, subject to penalties.

Early commissioning is encouraged, with RVUNL purchasing early operational capacity at the BESPA tariff plus margins.

Technical and Economic Considerations

The tender sets a competitive framework to ensure reliable energy storage:

Minimum and maximum bid quantities are 125 MW and 250 MW, respectively. The penalty structure and incentives foster high efficiency and reliability, pivotal for grid stability.

Developers are guaranteed 100% offtake by RVUNL, offering a secure revenue stream.

Implications for Rajasthan's Energy Landscape

This tender aligns with Rajasthan's ambition to integrate renewable energy and address grid variability effectively. By combining energy storage with solar and wind, the state aims to mitigate power fluctuations, reduce carbon emissions, and create a sustainable energy infrastructure.

The additional greenshoe capacity provides flexibility for scaling up, making this tender one of the most attractive and forward-looking in India’s energy sector.

For further details and tender documents, visit: Rajasthan BESS Tender Documents.