The Andaman & Nicobar Administration has announced a new project to improve energy reliability in the islands by setting up a 20 MWh grid-connected Battery Energy Storage System (BESS) in the South Andaman Region. The project aims to stabilize the grid, manage peak load demand, and support energy security in the islands, which often face power fluctuations due to their remote location and limited generation sources. The project will be developed under the RESCO model on a Build-Own-Operate basis, with the selected bidder responsible for building, owning, and operating the system for 12 years.
The total estimated cost of the project is approximately ₹60 crores, and interested bidders are required to submit an Earnest Money Deposit of ₹1,20,00,000. However, Micro, Small, and Medium Enterprises (MSMEs) registered under NSIC, DIC, or Udyog Aadhar are eligible for an exemption from the EMD. The tender is open to bidders who meet the minimum technical and financial standards outlined in the Request for Selection or Request for Proposal documents, and applicants must have prior experience in battery storage or hybrid BESS projects.
The project is a significant step towards modernizing the energy infrastructure of the Andaman & Nicobar Islands and supporting future growth in the region. The tender notice was issued on January 8, 2026, and important dates for the pre-bid meeting, bid submission, and technical bid opening are available on the Tender Information System on the official e-procurement portal. Interested bidders must check the portal for the complete schedule and further clarifications.
The project’s key features include a focus on performance guarantees related to system availability, overall efficiency, and battery health retention, which are crucial for long-term stability and economic viability. The administration has also provided relief for MSMEs, which is expected to encourage participation from smaller players in the industry. The project is expected to play a critical role in supporting the energy needs of the Andaman & Nicobar Islands and promoting sustainable development in the region.
Overall, the project is a significant initiative towards improving energy reliability and security in the Andaman & Nicobar Islands, and is expected to have a positive impact on the region’s economic and social development. The use of battery storage technology is also expected to reduce the islands’ dependence on fossil fuels and promote the use of renewable energy sources, contributing to a more sustainable and environmentally friendly energy mix.