RRUVNL Launches Rajasthan’s First BESS Tender For 1000MWh

To meet its expanding energy needs, Rajasthan’s state power generation company, Rajasthan Rajya Vidyut Utpadan Nigam (RRUVNL), has announced its first standalone Battery Energy Storage System (BESS) tender. This 500 MW/1000 MWh tender, which includes a greenshoe option, will be developed across six locations: Giral Lignite Power Project in Barmer; Suratgarh Thermal Power Station; RVPNL GSS at Sakatputa in Kota; and RVPNL GSS at Heerapura in Jaipur. The tender takes the total tendered BESS projects beyond 10 GWh now.

As reliance on RE increases, the grid faces stress during peak times in the evening and morning. ESS plays a vital role in integrating RE into the grid, assisting grid operators in managing fluctuations in demand and RE supply. ESS connected to solar pooling stations also help maximize the capacity utilization of RE transmission systems.

-The tender aims to develop 500 MW/1000 MWh standalone battery systems through Tariff-Based Global Competitive Bidding, on the premises of power projects owned by RVUNL and GSS of RVPNL. There is an additional greenshoe option of 500 MW/1000 MWh with Viability Gap Funding (VGF) support under the “BOO” (Build, Own, Operate) mode. The selected bidder is required to submit a Performance Bank Guarantee (PBG) of ₹26.5 lakh per MW before signing the BESS Purchase Agreement (BESPA).

-The document mandates specific performance standards, requiring the BESS Developer (BESSD) to ensure a minimum system availability of 95% on a monthly basis. In case of a shortfall, the BESSD is liable to pay liquidated damages to RVUNL.

-Land will be provided by RVUNL on a Right-of-Use basis to the developer for the duration of the BESPA at an annual lease charge of ₹1 per plot per year. For every 125 MW/250 MWh BESS project, a plot size of 17,500 square meters will be allocated to the developer.

-The BESPA will be valid for a period of 12 years from the Scheduled Commercial Date (SCD) of the project or the date of full commissioning, whichever is later. The BESPA may be extended for the remaining cycles of the battery at 50% of the BESPA tariff for a mutually agreed period between the BESSD and RVUNL prior to BESPA expiry.

-The BESSD must guarantee a minimum AC-to-AC roundtrip efficiency (RtE) of 90% on a monthly basis. If the RtE falls below 75%, the BESSD will incur liquidated damages at 1.5 times the average Market Clearing Price (MCP) during peak hours (1830Hrs – 2230Hrs) in the Day-Ahead Market (DAM) of the Power Exchange for that billing month. Excess conversion losses will be penalized based on this calculation, and no tariff payment will be made to the BESSD for the month in question.

Viability Gap Funding Mechanism

Under this Request for Selection (RfS), the VGF amount available to each developer will be limited to ₹27 lakh per MWh or 30% of the capital cost for BESS, whichever is lower. For example, for a project capacity of 100 MW/200 MWh, the maximum VGF amount sanctioned will be ₹54 crore. The BESS developer must submit a certificate of the capital cost incurred, certified by the Statutory Auditors, within six months from the COD. If the VGF amount sanctioned exceeds 30% of the certified capital cost, the VGF amount will be adjusted to 30% of the certified cost, and disbursement will be adjusted or recovered accordingly.

Tender details can be accessed at eProcurement System Government of Rajasthan