The Andaman & Nicobar Administration has taken a major step toward improving energy reliability in the islands with the announcement of a new project focusing on battery storage. The Secretary (Power), acting on behalf of the President of India, has invited online bids for setting up a 20 MWh grid-connected Battery Energy Storage System in the South Andaman Region. The project site has been identified at Dollygunj, Sri Vijaya Puram. This initiative aims to stabilize the grid, manage peak load demand, and support the overall energy security of the islands, which often face power fluctuations due to their remote location and dependence on limited generation sources.
The project will be developed under the RESCO model on a Build-Own-Operate basis. The bidder selected through tariff-based competitive bidding will be responsible for building, owning, and operating the system for a period of 12 years. They must also ensure smooth operations and maintenance throughout this duration. The tender emphasizes performance guarantees related to system availability, overall efficiency, and battery health retention, which are important factors for long-term stability and economic viability of a storage-based system.
The total estimated cost of the project is about ₹60 crores. Interested bidders are required to submit an Earnest Money Deposit of ₹1,20,00,000 as part of their bid submission. However, the administration has provided relief for Micro, Small, and Medium Enterprises registered under NSIC, DIC, or Udyog Aadhar, as they are eligible for an exemption from the EMD. In the case of consortiums, every member of the group must be a registered MSME to qualify for this exemption. Bidders applying for the exemption must submit valid supporting documents and scanned certificates during the tender process.
The tender is open only to bidders who meet the minimum technical and financial standards outlined in the Request for Selection or Request for Proposal documents. Applicants must have a valid GSTN, PAN, and comply with EPF and ESI norms where applicable. They must also show prior experience in battery storage or hybrid BESS projects. Depending on the provisions in the tender documents, consortiums and joint ventures may also be allowed to participate, but only under the conditions specified in the RFS or RFP.
The tender notice was issued on January 8, 2026. Important dates for the pre-bid meeting, bid submission, and technical bid opening are provided on the Tender Information System on the official e-procurement portal. Interested bidders must check the portal for the complete schedule and further clarifications. This project represents a critical move toward modernizing the energy infrastructure of the Andaman & Nicobar Islands and supporting future growth in the region.
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