ADB Invest Rs 150 Crore in Tata Power Delhi Distribution
The Asian Development Bank (ADB) has announced its plans to invest in non-convertible debentures valued at Rs 150 crore in Tata Power Delhi Distribution Ltd (TPDDL).
The Asian Development Bank (ADB) has announced its plans to invest in non-convertible debentures valued at Rs 150 crore in Tata Power Delhi Distribution Ltd (TPDDL). The investment aims to improve Delhi’s power distribution through grid enhancements. Additionally, ADB has also approved a grant of USD 2 million to assist in the acquisition and integration of a pilot battery energy storage system (BESS). The Manila-based funding institution issued a statement confirming the developments.
The proceeds from the senior secured financing will be utilized to establish a new 66/11-kilovolt grid, expand transformers, substations, feeder lines, and switching stations, install smart meters, and replace outdated electrical equipment and meters. In addition, the funding will also contribute to the development of a groundbreaking 10-megawatt-hour (MWh) battery energy storage system (BESS), which will be the first of its kind in South Asia when it comes to the distribution transformer level.
Significance of the Battery energy storage system (BESS):
The BESS will allow electricity to be stored and delivered on demand, reducing grid instability, and providing the flexibility to integrate intermittent renewable energy sources such as solar and wind power.
The BESS project will play a critical role in creating a resilient grid and establishing a future-ready power distribution network. The Indian government has set a target of achieving a battery storage capacity of 4% of total electricity consumption by 2030, requiring a total battery energy storage capacity of 182 gigawatt-hours by that time.