February 15 (Renewables Now) - A solar-plus-storage project, which would have resulted in the construction of the first utility-scale energy storage plant in India, has been cancelled, The Hindu BusinessLine reported on Wednesday.
The project, consisting of 20 MW of solar and 28 MWh of battery storage planned for installation in the Andaman and Nicobar islands, was awarded in a tender last year to Mahindra Susten. The tender was held by NLC India Ltd (BOM:513683), a coal company owned by the Indian government.
Sarat Kumar Acharya, NLC India's chairman and managing director, has said, as cited by BusinessLine, that the company will go for a new tender as the requirements have changed. NLC India will now seek bids for a project of 8 MWh, according to the article.
Debi Prasad Dash, director at the India Energy Storage Alliance (IESA), told the publication that the frequent tender cancellations may deter foreign and local companies from entering the storage market. The past three years have seen the cancellation of over 10 tenders for energy storage, the article says.