ADB, Tata Power Delhi Distribution Collaborate for Grid & BESS Enhancement in Delhi

The Asian Development Bank (ADB) and Tata Power Delhi Distribution Limited (TPDDL), the distribution arm of Tata Power, have announced that they have signed an agreement to subscribe to non-convertible debentures for Rs 1.5 billion ($18.2 million) to enhance Delhi’s power distribution through grid enhancements. The agreement also involves a $2 million grant to partially finance the purchase and integration of a pilot Battery Energy Storage System (BESS).

Tata Power held that the senior secured financing will be used to commission a new 66/11-kilovolt grid, augment and expand transformers, substations, feeder lines, and switching stations, install smart meters, and replace obsolete electrical equipment and meters.

As per Tata Power, the 10-MWh BESS is South Asia’s first grid-scaled energy storage project at the distribution transformer level. It will enable electricity to be stored and delivered on demand, reducing grid instability, and providing the flexibility to integrate intermittent solar and wind energy resources.

“The grant to finance the BESS is provided by Goldman Sachs and Bloomberg Philanthropies’ Climate Innovation and Development Fund (CIDF) and administered by ADB,” said Tata Power.

“Mainstreaming a battery energy storage system at the distribution transformer level will better integrate renewable energy sources and contribute to a more disaster-resilient power distribution system for Delhi,” said ADB’s Director General for Private Sector Operations Suzanne Gaboury.

Dr. Praveer Sinha, CEO & MD, Tata Power, stated, “We thank ADB for administering this grant for the integration of the pilot BESS with TPDDL’s network. This will enable us in ensuring high-quality power supply for consumers and help integrate clean energy into the power supply mix.”

In 2022, India’s Ministry of Power targeted battery storage capacity of 4% of total electricity consumption by 2030. To reach that goal, India would need a total battery energy storage capacity of 182 GWh by 2030. ADB’s financing through CIDF for the pilot BESS will provide proof of concept and lessons learned by TPDDL to implement a planned additional 50 MWh of BESS capacity.

Launched in September 2021, CIDF is a blended finance facility managed by ADB, to unlock up to $500 million in private sector and governmental investments in support of sustainable low-carbon economic development and help catalyze a clean energy transition in South and Southeast Asia.

TPDDL is a joint venture between Tata Power and the Government of the National Capital Territory of Delhi. The Tata Power firm has an operational area spans 510 square kilometres with customers across industrial, commercial, household, and agricultural segments.