Island Grid Modernisation Gains Momentum as Andaman & Nicobar Floats Tender for Battery Storage Project – EQ
In Short : The Andaman and Nicobar administration has invited bids for a battery energy storage system of up to 20 MWh, aimed at improving grid stability and renewable energy integration. The move reflects a strategic push to strengthen island power infrastructure, reduce diesel dependence, and support reliable, clean electricity supply across the union territory.
In Detail : The Andaman and Nicobar Islands administration has issued a tender inviting bids for the development of a battery energy storage system with a capacity of up to 20 MWh. This initiative marks a significant step toward modernising the region’s power infrastructure and enhancing the reliability of electricity supply in an island-based grid environment.
Island grids face unique challenges due to limited interconnections and high dependence on conventional diesel-based generation. By deploying battery storage, the administration aims to improve grid flexibility, manage peak demand more efficiently, and reduce reliance on fossil fuels that are costly and logistically complex to transport.
The proposed battery energy storage system is expected to play a critical role in integrating renewable energy into the local grid. Storage capacity will allow excess renewable power to be stored and dispatched when required, helping to smooth fluctuations and improve overall system stability.
Energy storage is particularly important for remote regions like Andaman and Nicobar, where grid disturbances can have widespread impacts. The project is designed to enhance resilience by providing backup power support and faster response during demand-supply imbalances or outages.
The tender also reflects the administration’s broader clean energy vision, which focuses on increasing renewable penetration while ensuring round-the-clock power availability. Battery storage acts as a bridge between intermittent renewable generation and consistent consumer demand.
From an implementation perspective, the project is expected to attract interest from technology providers and developers with expertise in storage solutions suited for challenging geographic and climatic conditions. Such projects also encourage innovation in system design and operational strategies.
The deployment of large-scale storage can lead to long-term cost savings by reducing fuel consumption, lowering maintenance requirements, and improving overall efficiency of the power system. Over time, this can translate into more affordable and sustainable electricity for consumers.
The initiative aligns with national objectives of promoting energy storage as a key enabler of the clean energy transition, particularly in regions where grid expansion options are limited. Successful execution could serve as a model for other island and remote grids.
Overall, the move to seek bids for a 20 MWh battery energy storage project highlights the Andaman and Nicobar Islands’ commitment to building a resilient, future-ready power system. It underscores the growing role of storage technologies in supporting clean, reliable, and sustainable energy solutions for geographically isolated regions.


