$2m pilot BESS for Delhi in grid overhaul deal

$2m pilot BESS for Delhi in grid overhaul deal

$2m pilot BESS for Delhi in grid overhaul deal 556 524 Batteries International

April 21, 2023: An investment deal plus $2 million grant for a pilot BESS to boost Delhi’s power distribution system was announced by the Asian Development Bank on April 10.

The battery chemistry of the 10MWh BESS was not disclosed, but the bank said it would be South Asia’s first grid-scaled energy storage project at the distribution transformer level.

The bank has agreed to subscribe to non-convertible debentures for Rs1.5 crore ($18.2 million) for Tata Power Delhi Distribution (TPDD) while the grant — from Goldman Sachs and Bloomberg Philanthropies’ Climate Innovation and Development Fund — will partially finance the purchase and integration of the BESS.

The senior secured financing will be used to commission a new 66/11kV grid and replace obsolete electrical equipment, that will enable expanding supplies of wind and solar power to be integrated into the grid.

The combined financing and grant package will pave the way to implement a planned additional 50MWh of BESS capacity, the bank said.

TPDD is a joint venture between Tata Power and the government of the National Capital Territory of Delhi.

Asian Development Bank director-general for private sector operations Suzanne Gaboury said: “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.”

In 2022, India’s Ministry of Power targeted battery storage capacity of 4% of total electricity consumption by 2030. To reach that goal, India would need a total BESS capacity of 182GWh by 2030.