Boost for green energy drive: Solar battery storage prices hit new low in Rajasthan auction

Solar battery energy storage systems (BESS) prices have hit a new low of Rs 1.77 lakh per MW, a move towards availability of solar power during peak power demand which is expected to be cheaper than thermal power during the night.

Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) bid for 1,000MW/2,000MWh BESS reverse auction, which was opened October 8 saw a record 48 bidders and with 11 bidders offering Rs 1.77-1.78 lakh per MW, the lowest for any storage bid in the country so far. The previous low was Rs 2.21 lakh per MW in November 2024.

There were 28 bidders in the fray once the ceiling price was fixed at Rs 2.05 lakh per MW. The bid received an overwhelming response. According to reports, the price of solar plus BESS supplied during night can be supplied to consumers at Rs 4.28 per unit during the night, compared to Rs 6 per unit coal-generated power.

Experts says such low tariffs of BESS are dangerously competitive and time will tell if these can be achieved. However, with two years for execution and project going live, there is room for innovation and optimisation to play its part. Few years back, solar seemed impossible but efficiency, policy support and scale made things different.

“It was always said that Rajasthan discovers low solar generation prices due to higher solar irradiation. But, the lowest prices in the country for BESS is a testament to the robust policy ecosystem which the state provides to the businesses and the proactive facilitation to the bidders, these are the overriding reasons for the investors posing trust in the State,” said Ajitabh Sharma, Principal Secretary (Energy), Government of Rajasthan.

India is blessed with plentiful sunlight during the day to generate solar power. Yet, meeting peak power demand in the afternoons and early evenings remains a challenge. Rising use of air conditioners amid more intense heatwaves and increasing industrial demand mean peak demand is ever growing.

This is where the battery storage system comes into play, ensuring round-the-clock availability of green energy at competitive tariffs. Projects are offering solar energy with 6 hours of peak power storage.