Mahindra Susten emerged as the lowest (L1) bidder in the 20 MW solar with battery energy storage system (BESS) auction conducted by Neyvveli Lignite Corporation (NLC) India.
Mahindra Susten quoted a project cost of ₹2.988 billion (~$45.6 million) to develop the 20 MW solar project along with the required BESS of 28 MWh. The company quoted ₹1.788 billion (~$27.3 million) as the cost of engineering procurement and construction (EPC) and ₹1.2 billion (~$18.3 million) as the cost of operation and maintenance (O&M) of the project.
An official in the contracts department of NLC India confirmed that the financial bids have been received by NLC India and as of now, Mahindra Susten is the lowest (L1) bidder, followed by Adani, Sterling & Wilson, TBEA and Marine Electricals.
The NLC India official also said that, the management is surprised there were four bids below ₹5 billion (~$76.3 million) mark for the tender, which is unexpected as BESS system cost is high. The official also added that when completed this will be one of the largest solar generating facilities to deploy BESS system globally.
Adani quoted a project cost of ₹3.561 billion (~$54.4 million). This includes ₹2.74 billion (~$41.8 million) EPC cost and ₹821 million (~$12.5 million) as O&M cost. Sterling & Wilson quoted ₹4.459 billion (~$68.1million), which includes ₹3.33 billion (~$50.8 million) as EPC cost and ₹1.129 billion (~$17.2 million) as O&M cost. TBEA quoted a project cost of ₹4.568 billion (~$69.7 million), which includes ₹2.859 billion (~$43.7 million) as EPC cost and ₹1.709 billion (~$26.1 million) as O&M cost.
Marine Electricals was the other company to bid around the ₹ 5 billion (~$76.3 million) mark. The company quoted a project cost of ₹5.092 billion (~$77.7 million), inclusive of ₹2.475 billion (~$37.8 million) EPC cost and ₹2.617 billion (~$40 million) O&M cost.
The NLC official said, in all 10 firms participated in the auction. We have conducted the auction and discovered the L1 bidder, but this does not mean the culmination of the auction; the contracts haven’t yet been awarded. The NLC will take some time to consider the viability and project feasibility, and then award the BESS contracts. The developers have to wait as of now, added the NLC India official.
NLC India had tendered the projects in Andaman and Nicobar in May 2017. This is the first major BESS tender for which financial bids have been received. The project completion timeframe is 18 months from the date of letter of award.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.