The Indian state of Rajasthan has launched a tender for a 2GWh standalone Battery Energy Storage System (BESS). This move comes after the Indian government relaxed its guidelines for Viability Gap Funding (VGF) for energy storage projects.
The relaxation of VGF guidelines is expected to make it easier for companies to participate in the tender and for the project to be financially viable. VGF is a government funding mechanism that provides financial support to projects that are not commercially viable on their own.
The 2GWh BESS tender is a significant development in India’s energy storage sector, which has been growing rapidly in recent years. The project will help to stabilize the grid and provide backup power during outages, as well as support the integration of renewable energy sources into the grid.
The tender is open to both domestic and international companies, and the project is expected to be completed within a period of 18 months. The Rajasthan government has set a tariff cap of ₹12 per kilowatt-hour (kWh) for the project, which is higher than the tariff caps set for previous energy storage projects in the country.
The launch of the tender is seen as a positive development for the energy storage industry in India, which has been facing challenges such as high costs and lack of government support. The relaxation of VGF guidelines and the launch of the tender are expected to attract more companies to the sector and help to drive growth.
The Indian government has set ambitious targets for the adoption of renewable energy and energy storage, and the launch of the 2GWh BESS tender is seen as a step towards achieving these targets. The project will help to reduce the country’s reliance on fossil fuels and decrease its carbon emissions, and will also provide a boost to the local economy.
Overall, the launch of the 2GWh BESS tender in Rajasthan is a significant development in India’s energy storage sector, and is expected to have a positive impact on the industry and the environment. With the relaxation of VGF guidelines and the launch of the tender, the Indian government is taking steps to support the growth of the energy storage sector and achieve its renewable energy targets.