Sri Vijaya Puram, Sept. 16: The Andaman and Nicobar Administration has invited bids for setting up a 20 MWh grid-connected Battery Energy Storage System (BESS) at Dollygunj, Sri Vijaya Puram, with the project aimed at supporting grid stability and meeting peak-demand requirements in South Andaman.
The tender has been issued by the Electricity Department on behalf of the President of India under a Renewable Energy Service Company (RESCO) model. The project is proposed to be developed on a Build, Own and Operate (BOO) basis through tariff-based competitive bidding.
According to the tender notice dated August 31, 2026, the indicative capital cost of the project has been pegged at approximately ₹60 crore. The selected developer will be responsible for implementing the project and operating and maintaining the facility for a period of 12 years.
The proposed facility will have a total storage capacity of 20 MWh. The tender provides for a long-term contractual arrangement under which the selected developer will be responsible for the performance of the storage system, including requirements relating to system availability, efficiency and battery health retention.
The BESS is intended to provide the Electricity Department with additional flexibility in managing the power system, particularly during periods of peak demand. The tender identifies grid stability and peak-demand requirements as key objectives of the project.
Under a battery storage system, electricity can be stored and subsequently supplied to the grid when required. The proposed project is therefore being planned as a grid-support infrastructure asset rather than as a standalone generation facility.
The project is also proposed in connection with the existing renewable-energy infrastructure at Dollygunj. The earlier project configuration envisaged a 20 MWh storage facility comprising two components: a 4 MW/4 MWh system and a 4 MW/16 MWh system. The supplied tender material describes the overall project as a 20 MWh BESS.
The tender has been structured through tariff-based competitive bidding. Bidders are required to quote tariffs in accordance with the parameters specified in the Request for Selection and Request for Proposal documents.
The ₹60 crore figure mentioned in the tender is indicative and is to be used for determining requirements including the Earnest Money Deposit, Performance Bank Guarantee and other bid-related provisions. Payments by the Electricity Department over the 12-year contract period will be based on the tariff discovered through competitive bidding and approved or adopted by the Joint Electricity Regulatory Commission.
The tender places the Earnest Money Deposit or Bid Security at ₹1.20 crore. Eligible Micro, Small and Medium Enterprises may be exempted from submitting the EMD, subject to meeting the conditions prescribed under the tender, including submission of a valid Udyam Registration Certificate with the applicable NIC code.
The tender also sets qualification requirements for prospective bidders. These include valid GSTN registration and PAN, along with EPF and ESI compliance wherever applicable. Relevant experience in Battery Energy Storage System or hybrid BESS projects is among the technical requirements specified for participation.
Consortium or joint-venture participation will be governed by the conditions laid down in the tender documents.
The tender documents, along with any subsequent corrigenda, are to be made available through the Andaman and Nicobar Administration’s e-procurement system. The tender notice directs prospective bidders to the administration’s Tender Information System for details regarding bid submission and technical-bid opening schedules.
The proposed project represents a move towards incorporating dedicated grid-scale energy storage into the power infrastructure of South Andaman. With renewable-energy generation forming part of the islands’ power infrastructure, storage can provide a mechanism for shifting the availability of stored electricity to periods when it is required by the grid.
The 12-year RESCO arrangement means the selected private developer will undertake the project under the BOO framework and remain responsible for operation and maintenance during the contract period, while the Electricity Department will procure the contracted storage service at the tariff determined through the competitive bidding process.
With the tender now floated, the next stages will involve the submission and evaluation of bids in accordance with the technical, financial and commercial conditions specified in the tender documents.
