Tata Power Delhi Distribution Ltd (TPDDL), the distribution arm of The Tata Power Company Ltd, and the Asian Development Bank (ADB) have signed an agreement to improve power distribution in the Indian capital city of Delhi. The agreement includes a subscription to non-convertible debentures worth INR 1.5 billion and a $2 million grant to partially finance the purchase and integration of a pilot Battery Energy Storage System (BESS).
Grid Enhancements and Installation of BESS
The funds raised from the senior secured financing will be utilized for various purposes, including the construction of a new 66/11-kilovolt grid, expansion and enhancement of transformers, substations, feeder lines, and switching stations, installation of smart meters, and replacement of outdated electrical equipment and meters.
The pilot BESS will have a capacity of 10 megawatt-hours (MWh) and will enable electricity to be stored and delivered on demand. It will play a crucial role in building a resilient grid and paves the way for a future-ready power distribution network. 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.
ADB’s Perspective on the Partnership
Suzanne Gaboury, ADB’s director general for Private Sector Operations, said, “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.”
Tata Power’s CEO’s Comment on the Partnership
Praveer Sinha, CEO & Managing Director of Tata Power, said, “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. This will enable us to ensure a high-quality power supply for consumers and help integrate clean energy into the power supply mix.”
Conclusion
The partnership between TPDDL and ADB is a positive step towards improving power distribution in Delhi. The funds raised from the senior secured financing will be utilized to construct a new 66/11-kilovolt grid, expand and enhance transformers, substations, feeder lines, and switching stations, install smart meters, and replace outdated electrical equipment and meters. The pilot BESS will enable electricity to be stored and delivered on demand and play a crucial role in building a resilient grid. This partnership is likely to contribute towards a more disaster-resilient power distribution system for Delhi and help integrate clean energy into the power supply mix.
