In a significant development, the price of Battery Energy Storage Systems (BESS) in Rajasthan has reached an all-time low of Rs 1.77 lakh per MW. This milestone was achieved during an auction conducted by Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL) for 1,000 MW of solar battery storage systems. The auction saw 11 bidders offering storage charges between Rs 1.77 and Rs 1.78 lakh per MW, significantly undercutting the previous lowest bid of Rs 2.21 lakh per MW.
This achievement is expected to have a positive impact on the cost of renewable energy during peak evening hours. With solar power generation costs at Rs 2.50 per unit and storage costs at Rs 1.78 per unit, power can be supplied to consumers at Rs 4.28 per unit during night hours, compared to Rs 6 per unit for coal-generated power. This reduction in cost is likely to make renewable energy a more viable option for consumers.
The record-low bids are a testament to Rajasthan’s robust policy ecosystem and proactive facilitation, making it a trusted destination for investors. The state is already a leader in renewable energy and is now focusing on large-scale storage to complement its extensive solar capacity. The energy department has floated tenders for an additional 2,000 MWh of battery storage, increasing its planned capacity to 6,000 MWh across multiple projects.
The central government’s viability gap funding of Rs 18 lakh per MWh for BESS projects has also played a crucial role in accelerating their adoption by states. The mainstreaming of solar power beyond daytime use is evident from an auction for a combined solar and BESS project in Madhya Pradesh, which achieved the lowest bid of Rs 2.70 per kilowatt-hour (kWh) last month.
Overall, the achievement of record-low bids for BESS in Rajasthan is a significant milestone in the state’s clean energy transition. It is expected to reduce the cost of renewable energy, prevent grid instability, and make Rajasthan a leader in the renewable energy sector. The state’s focus on large-scale storage and its proactive policy ecosystem are likely to attract more investors and drive the growth of the renewable energy sector in the region.