The Asian Development Bank (ADB) and Tata Power Delhi Distribution Limited (TPDDL), which is the distribution branch of Tata Power Company Limited, have signed a deal. ADB will invest Rs 1.5 billion (equal to $18.2 million or Rs 150 crore) in non-convertible debentures of Tata Power.
This investment aims to improve the power distribution in Delhi by upgrading the grid system. In addition, there is a grant of $2 million to partially fund the purchase and integration of a trial Battery Energy Storage System (BESS).
The senior secured funding will be utilized to establish a fresh 66/11-kilovolt electrical grid, amplify and enlarge transformers, substations, feeder lines, and switching stations. Furthermore, it will include the installation of intelligent meters and the replacement of outdated electrical devices and meters.
The 10-MWh BESS is said to be the first grid-scaled energy storage project at the level of distribution transformer. It is designed to store electricity and deliver it as required, ultimately minimizing grid instability. Additionally, it will facilitate the integration of sporadic solar and wind energy resources, rendering it more flexible.
The funding for this BESS comes from the Climate Innovation and Development Fund (CIDF) of Goldman Sachs and Bloomberg Philanthropies. ADB will administer the funding.
In September 2021, the Climate Innovation and Development Fund (CIDF) was initiated as a blended finance mechanism under ADB’s management, created with an initial philanthropic investment of $25 million from Goldman Sachs and Bloomberg Philanthropies.
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