ADB, Tata Power Delhi Distribution sign deal to enhance power distribution

The two entities have entered into an agreement to “subscribe to non-convertible debentures for ₹1.5 billion 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)”, Tata Power said in a statement.

TPDDL is a joint venture between Tata Power and the Government of the National Capital Territory of Delhi.

“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,” the statement said.

The 10-megawatt-hour (MWh) Battery Energy Storage System (BESS) will enable electricity to be stored and delivered on demand.

“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 ADB’s director general for Private Sector Operations Suzanne Gaboury.

The proceeds 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.

It will be also used to install smart meters and replace outdated electrical equipment and meters.

“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 in ensuring a high-quality power supply for consumers and help integrate clean energy into the power supply mix,“ said Praveer Sinha, CEO & Managing Director, Tata Power.