Mahindra Susten to build 1st battery backed solar project
Mahindra Susten, a part of the Mahindra & Mahindra group, is close to setting up India’s first battery-backed solar power project of utility scale in the Andaman and Nicobar islands
The company has emerged lowest bidder in a tender invited by state run-NLC (formerly Neyveli Lignite Corporation), beating Adani Group, Hero Future Energies, among others with a bid of Rs 288 crore.
As a part of a government initiative to encourage battery-backed solar power project, two other public sector companies — Solar Energy Corporation in India and NTPC — were to award similar projects but have scrapped it after inviting bids.
“Current energy requirement in Andaman and Nicobar is primarily met by diesel generator set and the cost of generation is as high as over Rs 20 a unit. This is an environment friendly option and cheaper too,” Basant Jain, chief executive officer, Mahindra Susten, told
He said that the project will receive agrant of Rs 100 crore from the government, which would lower the effective tariff to Rs 8 a unit.
“Even without the grant, the cost of power will not be more than Rs 12 a unit, which is cheaper than power from diesel-run unit, and would still meet internal rate of return targets,” he said.