Rajasthan has cleared another landmark for India’s clean-energy transition, approving the country’s lowest battery-storage tariff and paving the way for 1 gigawatt-hour (GWh) of new capacity spread across four strategic locations.
The Rajasthan Electricity Regulatory Commission (RERC) has accepted bids ranging from ₹2.21 lakh to ₹2.24 lakh per megawatt per month for a stand-alone Battery Energy Storage System (BESS) totalling 1,000 megawatt-hours (MWh). Officials say the pricing undercuts every previous large-scale storage tender in India, signalling falling technology costs and stronger competition among developers.
The lithium-ion batteries will be deployed on a build-own-operate model at grid substations in Jaipur and Kota and at thermal power stations in Suratgarh and Giral. Site selection was guided by grid-stability modelling to ensure that stored solar and wind electricity can be dispatched instantly during evening peaks and summer surges, reducing reliance on costly spot-market power.
Four companies have secured the work: JSW Neo Energy (500 MWh), Solar World Energy Solutions (250 MWh), Raj Power Experts (150 MWh) and Oriana Power (100 MWh). Under the contract terms the firms will finance, build and operate the batteries while receiving a fixed monthly payment from state utilities.
Central government support is a key catalyst. The project qualifies for viability-gap funding of ₹27 lakh per MWh, and New Delhi has earmarked a further 4 GWh of storage allocation for Rajasthan with a subsidy of ₹18 lakh per MWh. State Energy Minister Hiralal Nagar said the batteries could save distribution companies up to ₹1 crore a day by avoiding expensive peak-hour purchases.
According to Rajasthan Rajya Vidyut Utpadan Nigam Chairman Devendra Shringi, the state aims for 18.5 GWh of cumulative storage by FY 2029. Planning is under way for an additional 1 GWh system to be delivered via NTPC Vidyut Vyapar Nigam, bringing the near-term pipeline to 2 GWh and an estimated investment of ₹2,000 crore.
Beyond lowering tariffs, officials underscore the broader payoff: round-the-clock reliability for households, better renewable integration and a replicable model for India’s other high-solar states.
