𝗦𝘁𝗮𝗻𝗱𝗮𝗹𝗼𝗻𝗲 𝗕𝗘𝗦𝗦 𝘁𝗮𝗿𝗶𝗳𝗳𝘀 𝘀𝗲𝗲 𝘀𝗵𝗮𝗿𝗽 𝗳𝗮𝗹𝗹 𝗮𝗺𝗶𝗱 𝗴𝗿𝗼𝘄𝗶𝗻𝗴 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗽𝗼𝗹𝗶𝗰𝘆 𝘀𝘂𝗽𝗽𝗼𝗿𝘁

Since January 2022, approximately 𝟳𝗚𝗪 𝗼𝗳 𝘀𝘁𝗮𝗻𝗱𝗮𝗹𝗼𝗻𝗲 𝗘𝗦𝗦 𝗰𝗮𝗽𝗮𝗰𝗶𝘁𝘆 𝗵𝗮𝘀 𝗯𝗲𝗲𝗻 𝗮𝘄𝗮𝗿𝗱𝗲𝗱 𝗮𝗰𝗿𝗼𝘀𝘀 𝟭𝟮 𝘁𝗲𝗻𝗱𝗲𝗿𝘀. The auction trends for Standalone ESS tenders highlight the evolving cost dynamics and deployment challenges in India’s energy storage sector.

BESS tariffs have been in a sharp and consistent decline, primarily driven by falling battery prices. The Energy and Resource Institute (TERI)’s BESS auction in 2023 (Delhi, 20MW) closed at INR 479,968/MW/month (US$5,614/MW/month), while the GUVNL Phase III auction in March 2024 (250MW, PAN India) dropped to INR 372,978/MW/month (US$4,362/MW/month) even without VGF support. The introduction of VGF in September 2023, offering up to 40% capital expenditure (capex) support, has further accelerated cost reductions for BESS projects.

Auctions conducted under the VGF framework, such as MSEDCL (August 2024, Maharashtra, 300MW) and Rajasthan’s RVUNL (November 2024, Rajasthan, 500MW), achieved tariffs as low as INR 219,001-INR 221,100/MW/month (US$2,561-US$2,586/MW/month), a 40% reduction compared with non-VGF projects for two-hour storage projects

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