The state government of Rajasthan has launched the Pugal Solar Park project in Bikaner, which is set to become the largest solar power generation and storage facility in India. The project will combine 2,450MW of solar generation with 5,000MWh of battery energy storage systems (BESS) and will be spread over 4,353 hectares of government-leased land. The project is expected to attract investments of over Rs 18,000 crore and will provide peak-hour power supply to consumers in the state.
The Pugal Solar Park is designed to address the state’s projected power deficit of over 22,000MWh by FY29 and will deliver firm renewable energy during peak evening hours. The project will be developed by Rajasthan Solar Park Development Company Ltd (RSDCL) and will offer a plug-and-play model with pre-developed civil and electrical infrastructure, assured grid connectivity, and government-leased land.
The tender for the project will be issued on November 28, 2025, as per a tariff-based competitive bidding process. Successful bidders will sign 25-year power purchase agreements with Rajasthan Urja Vikas and IT Services Ltd, backed by an optional payment security mechanism to ensure predictable cash flows. The project is divided into two lots: 2,000MW solar with 1,020MW/4,080MWh BESS and 450MW solar with 230MW/920MWh BESS.
Analysts estimate that the project will offer a leveraged internal rate of return of 12-14% for developers, with payback periods of seven to eight years. The project has already generated interest from global investors, including Brookfield, Masdar, BlackRock, and EDF Renewables, who are looking to invest in hybrid renewable projects with storage. The Pugal Solar Park is expected to become a game-changer in India’s renewable energy sector, providing a reliable and sustainable source of power to meet the state’s growing energy demands.
The project’s unique features, such as its large-scale solar generation and advanced energy storage systems, make it an attractive opportunity for investors. The government’s support and the project’s predictable cash flows also make it an attractive option for developers. With its potential to deliver firm renewable energy during peak hours, the Pugal Solar Park is set to play a crucial role in addressing India’s energy challenges and promoting sustainable development.