ADB, Tata Power Delhi sign a deal for grid enhancement, integration of a pilot BESS

The Asian Development Bank (ADB) and Tata Power Delhi Distribution Ltd (TPDDL) on Monday, signed an agreement to subscribe non-convertible debentures worth $18.2 million (1.5 billion INR) to enhance Delhi's power distribution through grid enhancements, and a $2 million grant to partially finance the purchase and integration of a pilot battery energy storage system (BESS).

The senior secured finance 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augment and expand transformers, substations, feeder lines and switching stations, install smart meters, and to replace outdated equipment and meters.

"Power Distribution is a crucial link in the electricity supply chain and at times one of the most vulnerable. 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 Suzanne Gaboury, Director General for Private Sector Operations, ADB.

"As Asia's Climate Bank, ADB supports India's climate goals through innovative technologies and the catalyzing of private capital to finance green projects."

Tata Power Delhi which is the distribution arm of Tata Power Co Ltd (Tata Power) stated that 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.

"The battery energy storage system plays a crucial role in building a resilient grid and paves the way for a future-ready power distribution network. We thank ADB for administering this grant for the integration of the pilot BESS with TPDDL's network," said Dr. Praveer Sinha, CEO and Managing Director of Tata Power.

"This will enable us in ensuring high-quality power supply for consumers and help integrate clean energy into the power supply mix."

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.