Delhi Power Distribution Project Signed

On 10 April, ADB and Tata Power Delhi Distribution Limited (TPDDL), the distribution arm of Tata Power Co Ltd (Tata Power), signed an agreement to subscribe to non-convertible debentures for 1.5 billion Indian Rupees (equivalent to $18.2 million) 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).

The grid will be enhanced through the installation of a new 66/11-kilovolt grid, augmentation and expansion of transformers, substations, feeder lines, and switching stations, installation of smart meters, and the replacement of obsolete electrical equipment and meters.

The $2 million grant will install a 10-megawatt-hour (MWh) BESS that is South Asia’s first grid-scaled energy storage project at the distribution transformer level. It will enable electricity to be stored and delivered on demand, reducing grid instability, and providing the flexibility to integrate variable solar and wind energy resources. Goldman Sachs and Bloomberg Philanthropies’ Climate Innovation and Development Fund (CIDF) administered by ADB provided the grant to finance the pilot BESS.

Launched in September 2021, CIDF is a blended finance facility managed by ADB, established with an initial $25 million philanthropic commitment from Bloomberg Philanthropies and Goldman Sachs. The fund has the potential to unlock up to $500 million in private sector and governmental investments in support of sustainable low-carbon economic development and help catalyze a clean energy transition in South and Southeast Asia. The project is led by PSIF1’s Japnit Kaur.