Maldives Takes Green Leap: ADB-Funded Project Offers Opportunities for Battery Energy Storage Systems

  • Maldives
  • World
  • Business
PUBLISHED 24 August 2023

The Republic of Maldives has embarked on a significant stride towards its energy transition goals by commencing a tender process aimed at procuring cutting-edge battery energy storage systems (BESS). This strategic move is supported by the Asian Development Bank (ADB), marking a notable collaboration in advancing sustainable energy solutions.

Under the aegis of the Accelerating Sustainable System Development Using Renewable Energy (ASSURE) Project, the ADB is providing a substantial grant of US$41.5 million to bolster this transformative initiative. The central objective of the tender is to deploy advanced BESS and energy management systems (EMS) across 18 islands within the Maldives. This endeavor is set to introduce approximately 40MWh of additional energy storage capacity, as elucidated by Jaimes Kolantharaj, a distinguished senior energy specialist at the ADB, in a recent social media announcement.

The driving force behind this venture is the Maldives' resolute commitment to diversify its energy portfolio away from diesel reliance. In pursuit of this goal, the nation instituted two pivotal programs in 2014, each geared towards augmenting its renewable energy capacity across its extensive archipelago comprising over 1,000 islands. The first initiative, known as Preparing Outer Islands for Sustainable Energy Development (POISED), was executed in partnership with the ADB, focusing on implementing solar photovoltaic battery-based hybrid systems across the outer islands. The second, named Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE), received backing from the World Bank and was devised to catalyze private sector investments in solar photovoltaic projects within the greater Male region.

Building on the success of the ASPIRE program, the Maldives embarked on several tenders, facilitated by the World Bank, mirroring the present endeavor. In 2021, the nation sought to procure 40MW/40MWh of BESS across multiple regions, an initiative that underwent revisions but was subsequently reopened last year, still emphasizing the acquisition of 40MWh of BESS.

The contracts to be awarded in this latest round of procurement will encompass the comprehensive spectrum of design, supply, and installation of BESS and EMS systems.

Prospective bidders aiming to participate in this momentous tender must meet specific qualifications, including:

  • A minimum average annual turnover of US$47.25 million, calculated from certified payments received for ongoing or completed contracts over the past three years.

  • Involvement as a contractor, joint venture partner, or subcontractor in a minimum of two projects satisfactorily completed in the last five years, with similarities to the proposed contract. The bidder's contribution in each of these contracts must exceed US$25.2 million.

The deadline for submitting bids is set for October 10, 2023. Interested parties are required to complete a two-step registration process with the Maldives' Ministry of Finance, commencing from August 20 to October 08, 2023. The registration involves a nominal fee of US$100, followed by the submission of the bidding document.

Successful bidders will be entrusted with the responsibility of executing the project within a stipulated timeframe of 360 days.

For comprehensive details regarding the bidding process and requisite documentation, interested parties can refer to the Ministry of Finance's dedicated webpage here. This initiative not only represents a pivotal step in the Maldives' sustainable energy journey but also offers an avenue for international collaboration in realizing a greener future