ADB commits Rs 150 cr to Tata Power Delhi Distribution Ltd

New Delhi: Multilateral funding agency ADB on Monday said that it proposes to subscribe non-convertible debentures worth Rs 150 crore of Tata Power Delhi Distribution Ltd (TPDDL), to enhance Delhi's power distribution through grid enhancements. Besides, Asian Development Bank (ADB) agreed to provide USD 2 million grant to partially finance the purchase and integration of a pilot battery energy storage system (BESS), a statement by the Manila-based funding institution said.

Financing will be used to commission a new 66/11-kilovolt grid

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, it said.

BESS- South Asia's 1st grid-scaled energy storage project

The 10-megawatt-hour (MWh) BESS is South Asia's first grid-scaled energy storage project at the distribution transformer level, it said. 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, it said. The grant to finance the BESS is provided by Goldman Sachs and Bloomberg Philanthropies' Climate Innovation and Development Fund (CIDF) and administered by ADB, it added.

"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 integrate renewable energy sources in a better manner and contribute to a more disaster-resilient power distribution system for Delhi," said ADB's Director General for Private Sector Operations Suzanne Gaboury.

ADB supports India's climate goals

As Asia's Climate Bank, ADB supports India's climate goals through innovative technologies and the catalysing of private capital to finance green projects, Gaboury said. The BESS plays a crucial role in building a resilient grid and paves the way for a future-ready power distribution network.

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. TPDDL is the distribution arm of Tata Power.

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