RVUNL Floats 500 MW / 2,000 MWh Standalone BESS Tender under VGF Scheme, Bid Deadline September 23

Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) has issued a request for selection (RfS) for the development of 500 MW / 2,000 MWh standalone Battery Energy Storage System (BESS) projects under the second tranche of the Viability Gap Funding (VGF) scheme. This is RVUNL’s second BESS tender under the second VGF tranche and its fourth standalone BESS tender overall.

The bid submission deadline for the tender is September 23, 2025. The tender is being implemented on a tariff-based competitive bidding model, with projects to be developed on a Build–Own–Operate (BOO) basis.

RfS NO.-  NIT: TN-07/2025-26

Project Capacity and Bidding Parameters

• The total capacity on offer is 500 MW / 2,000 MWh, designed for four-hour storage duration.
• Minimum Bid Size: 50 MW × 4 hours (200 MWh)
• Incremental Bid Size: At least 50 MW × 4 hours per block
• Maximum Capacity per Bidder: 250 MW / 1,000 MWh
• The projects can be awarded to multiple developers, allowing capacity distribution across various sites.

Location and Grid Connectivity

The BESS projects will be connected to the 400 kV Jaisalmer-2 Grid Sub-Station (GSS). Developers are required to ensure seamless integration with RVUNL’s grid infrastructure.

Land Procurement

• While RVUNL will assist developers in identifying and acquiring suitable land, the responsibility for arranging land lies primarily with the developer.
• If RVUNL land is available, it can be leased at actual cost.
• Developers must submit a lease, sub-lease, or purchase agreement covering at least the entire term of the Battery Energy Storage Purchase Agreement (BESPA) before achieving financial closure.

VGF Funding Structure

The viability gap funding will be disbursed in three tranches:

• 20% at financial closure upon submission of a bank guarantee
• 50% at commercial operation date (COD)
• 30% after completion of the first year of successful operation from COD
• The VGF rate for this tender is set at ₹18 lakh/MWh.

Operational and Technical Requirements

• Cycle Requirement: One full charge–discharge cycle per day
• Availability: 95% on a monthly basis, with penalties for deviation
• Round-trip Efficiency: Minimum 85% on a monthly basis
• Annual Degradation: Up to 2% allowed
• PPA Tenor: 15 years, extendable by the remaining cycle life period or up to 5 years at 50% of the BESPA tariff
• Charging Responsibility: RVUNL will be responsible for charging operations

Tariff and Selection Process

The quoted tariff will be in ₹/MW/month.
Winners in the electronic reverse auction (e-RA) will be selected based on the lowest tariff bids, with the acceptable range extending up to L1 + 2%.

Key Dates:

Tender Announcement: August 8, 2025

Bid Submission Deadline: September 23, 2025

Bid Opening Date: As specified in tender documents