Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has announced a Request for Selection (RfS) for establishing a 500 MW/2,000 MWh Standalone Battery Energy Storage System (BESS) in the state. The project will follow a Build, Own, Operate (BOO) model under a Tariff-Based Global Competitive Bidding process and will include Viability Gap Funding (VGF) support to attract competitive participation.

Project Objectives and Grid Integration

The primary aim of the initiative is to create a robust energy storage facility that RVUNL can use on an on-demand basis to meet the growing need for grid stability. This is particularly important as the share of renewable energy from sources like solar and wind continues to rise. 

The battery storage will be used to store surplus power and release it during peak demand periods, ensuring a steady power supply and better grid management. The initiative is aligned with India's target of achieving 500 GW of non-fossil fuel-based capacity by 2030, with BESS playing a key role in meeting this goal. 

By storing excess renewable energy and releasing it when required, the BESS project will help manage fluctuations in power generation and reduce reliance on conventional power sources.

Bidding Process and Requirements

The bidding process will be conducted in a single stage with two envelopes, followed by an e-Reverse Auction to ensure transparency and competitiveness. Interested bidders must submit an Earnest Money Deposit (EMD) of ₹2.10 lakhs per MWh to qualify for the bidding process. 

After selection, successful bidders will be required to provide a Performance Bank Guarantee (PBG) of ₹5.20 lakhs per MWh before signing the Battery Energy Storage Purchase Agreement (BESPA). RVUNL has emphasized that all bidders must comply fully with the terms and conditions of the RfS, including signing an Integrity Pact.

Timeline and Submission Details

The bidding process follows a specific timeline for interested participants. Clarifications regarding the RfS will be accepted until 25 August 2025. The last date and time for online submission of bid documents is 23 September 2025. All updates, amendments, and timelines related to the bidding will be available on the e-procurement portal of Rajasthan and the RVUNL website.

VGF Disbursement Structure

The RfS specifies that the VGF will be disbursed in three tranches to ensure proper project implementation. The first tranche of 20% will be released after financial closure. The second tranche of 50% will be given at the Commercial Operation Date (COD). The final 30% will be released after one year of COD. 

This phased disbursement, along with the requirement for a bank guarantee, is intended to promote the timely completion and sustained operation of the project. The competitive process is designed to bring in capable developers who can deliver a high-quality, reliable storage solution for the state. 

The project marks a significant move towards building a greener, more reliable, and future-ready power grid for Rajasthan, supporting the state's and the country's clean energy ambitions. The project is expected to contribute substantially to renewable energy integration, strengthen the grid infrastructure, and enhance energy security for the state in the coming years.