Andaman & Nicobar Seeks Bids For Upto 20 MWh BESS Project

The Electricity Department, Andaman & Nicobar Islands (ED-ANI), a government department under the A&N Administration, has issued a tender from developers to set up a 20 MWh grid-connected Battery Energy Storage System. It as sought bids for developing Battery Energy Storage System (BESS) under the Build Own Operate (BOO) model. The tender aims to develop a 4 MW/4 MWh system for grid stability support functions and a 4 MW/16 MWh system for the storage and delivery of power. It has sought bids for this project till February 16, 2026.  

The selection of the BESS developer (BESSD) for a total capacity of 20 MWh of Battery Energy Storage System will be carried out through an e-bidding process followed by an e-reverse auction. It is clarified that the BESS project shall comprise two subsystems: one with a rating of 4 MW/4 MWh (ESS-1) and the other with a rating of 4 MW/16 MWh (ESS-2). Setting up both ESS-1 and ESS-2 will constitute one project and will be under the scope of a single BESSD.

About The Project

With the island administration keen to reduce pollutionc caused by diesel gensets, still the primary source of electricity, BESS based tenders are the way to go. In the latest tender, a 20 MWh BESS project would be located within the premises of the 20 MW Solar PV (SPV) plant of NLC India Ltd at Dollygunj, Sri Vijaya Puram, in the Union Territory of Andaman & Nicobar Islands. A portion of this land would be used for setting up the 20 MWh BESS, for which a Land Use Right Agreement would be executed between ED-ANI and the battery energy storage developer.  

Through this tender, BESS will be charged primarily by utilizing the excess / surplus Solar Power during the day time. The BESS will have two components of storage system, i.e. ESS-I (1–hour-storage) and ESS-II (4-hour-storage). Both the components would form part of the BESS Project under the BESPA, and would be installed at the same location. 

Previous Projects in Andaman

Bids for the  latest tender are bound to be much lower than previous bids seen for the island. Like the levelised tariff of ₹6.99 per unit approved by the Central Electricity Regulatory Commission (CERC) in 2023 for NLCIL’s 20 MW solar power plant with a battery energy storage system (BESS) in the Andaman & Nicobar Islands.