Sri Lanka's First Tender for Battery Energy Storage System Receives Strong Interest from Investors

Strategic Insights -

Sri Lanka's first tender for a battery energy storage system (BESS) on a build-operate-transfer (BOT) basis has generated significant interest from investors, with a large number of vendors using Chinese batteries. The tender, issued by the Ceylon Electricity Board (CEB), called for expressions of interest for 160MW of battery energy systems at multiple locations as build-operate-own (BOO) projects to stabilize the grid and absorb more renewable energy. The bids ranged from slightly below 2 million rupees to 3 million rupees per MegaWatt per month, with some locations receiving up to 17 bids, making the tender highly competitive. The capacity charge of around 2 million rupees per MegaWatt per month works out to approximately 17 rupees per kilowatt hour.

Key Takeaways:

  • The CEB issued a tender for 160MW of battery energy systems on a BOO basis to stabilize the grid and absorb more renewable energy.
  • The tender received strong interest from investors, with a large number of vendors using Chinese batteries.
  • Bids ranged from slightly below 2 million rupees to 3 million rupees per MegaWatt per month.
  • Some locations received up to 17 bids, making the tender highly competitive.
  • The capacity charge of around 2 million rupees per MegaWatt per month works out to approximately 17 rupees per kilowatt hour.
  • Around 90 percent or more of the bidders used Chinese batteries.
  • Windforce Plc, a Sri Lankan company, was among the lowest bidders, but it is unclear what the margin is.

Statistics:

  • 160MW of battery energy systems were called for by the CEB through the tender.
  • The bids ranged from slightly below 2 million rupees to 3 million rupees per MegaWatt per month.
  • The capacity charge of around 2 million rupees per MegaWatt per month works out to approximately 17 rupees per kilowatt hour.
  • 90 percent or more of the bidders used Chinese batteries.

Sources:

  • Sources with knowledge of the matter
  • Ceylon Electricity Board (CEB)
  • Global Data Point
  • SyndiGate Media Inc.