Indian state sets record low battery storage tariff
Image: Sushmita Balasubramani, Wikimedia Commons
From pv magazine India
RRVUNL has concluded its tender for a 500 MW/2000 MWh standalone battery energy storage system at a price of INR 285,000 per MW per month, the nation’s lowest to date for a four-hour, single-cycle system.
“The four-hour, one-cycle tariff has now nearly matched the two-hour, two-cycle L1 tariff without viability gap funding, recorded in GUVNL tender. What began at INR 444,000/MW per month dropped to INR 359,000/MW per month in SJVN’s Uttar Pradesh tender and has now reached INR 285,000/MW per month—a significant decline. For comparison, solar plus four hours of BESS is currently priced at INR 2.87/kWh,” said Debmalya Sen, president, India Energy Storage Alliance (IESA).
Patanjali Ayurved secured 250 MW/1 GWh. Ultravibrant Solar Energy, Rama Reflection India, MEC Power Solutions, Bhagwati Lacto Vegetarian Exports, and Diwakar Renewable and Infra secured 50 MW/200 MWh each.
RRVUNL intends to use the storage systems on an on-demand basis to meet the state’s peak and off-peak requirements.
The utility will enter a battery energy storage purchase agreement with the selected bidders for energy storage services. The selected developers will set up the systems on a build-own-operate basis.
Projects awarded are eligible for central financial assistance in the form of viability gap funding through the Power System Development Fund scheme issued by the Ministry of Power.