New Delhi [India], April 10 : Asian Development Bank (ADB) and Tata Power Delhi Distribution Limited (TPDDL), the distribution arm of Tata Power, entered into an agreement to subscribe to non-convertible debentures for 1.5 billion rupees (equivalent to USD 18.2 million) to enhance Delhi's power distribution through grid enhancements.
They also signed a USD 2 million grant to partially finance the purchase and integration of a Battery Energy Storage System (BESS).
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," said Tata Power in an exchange filing on Monday.
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.
"As Asia's Climate Bank, ADB supports India's climate goals through innovative technologies and the catalyzing of private capital to finance green projects," Gaboury added.
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