China Energy Engineering Group Yunnan Institute wins the EPC contract for the 350MW compressed air energy storage demonstration project in Anning, Kunming, worth 1.55 billion yuan

Project Name: EPC General Contracting Project for the 350MW Compressed Air Energy Storage Demonstration Project in Anning, Kunming (Tender Number: XNZB2025-0685-0320ZB). Construction location: Anning City, Yunnan Province. Project Overview: The 350MW compressed air energy storage demonstration project in Anning, Kunming, is a type of new energy storage project. It plans to utilize the abandoned salt caverns from the salt mines in Kunming as gas storage facilities, with air compression systems, heat storage and exchange systems, and turbine power generation systems being built on the surface. The power plant will be connected to Kunming’s main power grid, serving as an energy storage facility on the grid side. The investment required for its construction is approximately 1.832 billion yuan. The site of this project is located in the western part of Taiping New City in Anning City, within the area of the Kunming Salt Mine. The preliminary site for the plant is located in the northeast corner of the mining rights area of the Kunming Salt Mine, adjacent to Taiping New City. It is 7 km west of the urban area of Anning City and 13 km east of the main urban area of Kunming. To the northwest of the project site is a brine extraction branch of a salt mine, while to the southeast are residential areas. Based on on-site investigations, the proposed site for the factory is approximately 350 meters long from north to south and 310 meters wide from east to west. The latitude and longitude of the center of the site are E 102.57° and N 24.94°. The elevation within the site ranges from 2000 to 2025 meters, and the planned area covered by the site is 213 mu (including slopes and areas required for construction). This project plans to use four salt caverns, namely An 1, An 2, An 3, and An 4, as gas storage facilities. These salt caverns are located at depths of 514–575 meters, and sonar surveys conducted in 2024 indicated that their total volume is approximately 600,000 cubic meters. Considering the increase in the available void volume for insoluble substances through gas injection for brine removal, the total available volume from An1 to An4 is 980,000 cubic meters. Scope of the tender: It includes both above-ground and underground works. The scope of the EPC general contracting for the above-ground works of the 350MW compressed air energy storage demonstration project in Anning, Kunming (including but not limited to): investigation and design of the energy storage project (including detailed geological surveys, topographic and geomorphic mapping, sampling, testing, preliminary design, construction drawing preparation, compilation of as-built drawings, organization and handover of project documents, pile testing, etc.) ； The procurement, transportation, and storage of all equipment and materials for energy storage projects (including air compressors, turbine expanders, turbine generators, complete sets of heat storage and heat exchange systems, main transformers and auxiliary transformers, water storage tanks, demineralized water systems, mechanical ventilation cooling towers, working transformers for high-pressure compressors, and all other main and auxiliary equipment and materials) ； All construction and installation work for energy storage projects (including the energy storage and power generation systems, chemical water treatment systems, water supply systems, electrical systems, thermal control systems, construction and installation work for the area in front of the plant, auxiliary production facilities, as well as the maintenance platforms and passages throughout the plant), as well as other main and auxiliary production-related works ； All construction and installation works for buildings and structures within the project’s red line, as well as all construction and installation works for temporary structures and compressed air pipelines outside the red line; transportation projects; water supply projects (including water for production and living purposes from off-site sewage treatment plants and brine extraction facilities to the plant area); rainwater and sewage drainage systems; foundation treatment; reconstruction of brine extraction pipelines from the original mine; foundation treatment; earthwork projects in the plant area and construction zone; and landscaping of the plant area and associated facilities – all of these are individual projects related to the site location. Scope of the EPC general contract for underground works of the 350MW compressed air energy storage demonstration project in Anning, Kunming (including but not limited to): site leveling work for the well sites above the four salt caverns – An1, An2, An3, and An4 – as well as the brine drainage well sites ； Old well plugging project for the four brine extraction wells An 1, An 2, An 3, and An 4 ； Drilling and completion works for injection and production wells above An1, An2, An3, and An4 salt caverns ； Drilling and completion engineering for brine drainage wells ； Survey and design for the improvement and renovation project of brine disposal equipment and process systems at the Kunming Salt Mine, gas injection for brine removal projects, brine well sealing projects, monitoring projects, and permanent site construction projects (including detailed geological surveys, topographic and geomorphological mapping, sampling, testing, preliminary design, construction drawing preparation, as-built document compilation, and organization and handover of project documents). The procurement, transportation, storage, and installation of all equipment and materials for underground projects. All construction work related to underground projects includes the following main tasks: preparations prior to construction, grading of the site where the wells will be built, sealing of existing brine extraction wells, drilling of injection and production wells, completion of injection and production wells, drilling of brine drainage wells, completion of brine drainage wells, upgrading and modification of the equipment and process systems used for handling brine from the Kunming Salt Mine, gas injection for brine drainage, sealing of brine drainage wells, testing the airtightness of well bores, microseismic monitoring of gas storage facilities, monitoring ground settlement in salt caverns, grading and hardening of the permanent well site, construction and installation of fences and gates around the permanent well site, procurement of all casings (including guides) for injection and production wells, as well as the tubing strings used for injection and production and for brine drainage, procurement of all casings and central pipes for brine drainage wells (including guides), procurement of casing heads for injection and production wells and brine drainage wells, procurement of control valves and quick-shut-off valves for injection and production wells, procurement of downhole tools such as packers for injection and production wells, procurement of wellhead equipment for brine drainage wells, procurement of submersible pumps for brine drainage, procurement of water pumps for gas injection and brine drainage, procurement of sand removal devices for gas injection and brine drainage, procurement of compressors used for gas injection and brine drainage along with related equipment, as well as various tasks related to partial commissioning, full-scale startup testing, and performance testing of the equipment. For the underground portion, aside from the survey and design work, the remaining elements will be considered as provisional estimates for specialized works; subsequently, the general contractor will conduct a second bidding process to handle these tasks. Other items include equipment manufacturing for the entire project (including air compressors, turbine expanders, turbine generators, complete sets of heat storage and heat exchange systems, main transformers, water storage spheres, central pipes and casings for injection and production wells, packers for injection and production wells, gas production trees, etc.), testing, inspection and verification, commissioning of the entire system, trial operation, tests related to grid connection, defect correction, technical training, acceptance (including environmental monitoring and environmental protection acceptance, special acceptances such as soil and water conservation monitoring and acceptance, phase acceptances, startup acceptance, handover for production, final project acceptance, etc.), technical services for complete sets of equipment, performance and quality assurance, safety monitoring, archiving of project documents, project quality assurance, approval procedures required for project construction and operation, quality inspection (including project construction inspections, safety monitoring of special equipment, pile foundation inspections, slope inspections, etc.), smart power plants, project insurance, as well as temporary facilities needed for project construction (including but not limited to): road and power line relocations, construction of temporary facilities, site leveling works (including demolition of existing structures and buildings), water and power supply facilities for construction, measures for transporting large items, disposal of waste soil (including costs related to waste dumps), renovation of communication facilities in mines, removal of surplus materials, rental of construction sites, and other related projects. Cooperate with the site relocation work for the project, as well as with the coordination of disruptions during construction and the resolution of various disputes, and bear the related costs. Ultimately, a grid-connected power generation and energy storage project is delivered that meets the requirements regarding equipment performance and project quality, as specified by the tenderer. The bidder is responsible for the entire process involved in this project, from design, procurement, construction, and commissioning to successful completion and acceptance. It is fully accountable for the project’s quality, safety, environmental protection, schedule, and cost, ensuring compliance with current standards and industry regulations such as the \"Code for Geotechnical Investigation of Compressed Air Energy Storage Power Stations,\" the \"Code for Design of Underground Gas Storage Halls in Compressed Air Energy Storage Power Stations,\" the \"Code for Design of Compressed Air Energy Storage Power Stations,\" the \"Code for Design of Large and Medium-sized Thermal Power Plants,\" the \"Regulations for Quality Inspection and Evaluation of Electric Power Construction,\" the \"Regulations for Commissioning, Testing, and Acceptance of Thermal Power Generation Projects,\" the \"Regulations for Acceptance of Thermal Power Projects upon Meeting Operational Standards,\" the \"Code for Geotechnical Investigation,\" and the \"Code for Geotechnical Investigation of Thermal Power Plants.\" The transfer of project data must meet the requirements of \"Data Transfer for Power Generation Projects\" (GB/T 32575-2016). During the warranty period, all spare parts and special tools are procured and supplied, relevant technical documents are organized, and local relations with the owner are coordinated to ensure that the project is commissioned to high standards. After the unit enters commercial operation, the bidder is responsible for continuing to assist the tenderer in contacting the manufacturers of relevant equipment and systems, and providing technical and human support. All relevant equipment, materials, testing and inspection, construction and coordination, related procedural matters, and changes that are not listed in the tender documents but are necessary for this project fall within the scope of this tender. Within the scope of this tender, if certain components are not specifically mentioned in the tender documents, but are essential for the functional operation, safety, stability, and grid connection of the project, then such structures, equipment, or services must also be provided by the bidder, with their costs included in the total price. Timeline requirement: Total duration: 600 calendar days (20 months). The specific start date shall be subject to the start order issued by the supervisor, while the total number of calendar days for the project duration remains unchanged. Quality requirements: (1) Requirements for investigation and design: The investigation and design plan should take into account the actual conditions on site, comply with **current relevant industry standards and specifications, and meet the requirements specified in the tender documents. (2) Quality requirements for the procurement of equipment and materials: The equipment and materials provided shall be brand new, meet **quality standards**, have all necessary documentation, come with quality certification from the manufacturer, and also satisfy the technical requirements specified in the tender documents. (3) The quality requirement for the project is a 100% pass rate on the first attempt at acceptance ； The pass rate for the construction, installation, and commissioning sub-projects is 100%. For details, please refer to the technical standards and requirements in Volume 2 of the tender documents. Winner of the bid: China Energy Engineering Group Yunnan Electric Power Design Institute Co., Ltd. // China Energy Engineering Group Hunan Thermal Power Construction Co., Ltd

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