Delhi distribution upgrade delivers smart meters and BESS pilot
For a Delhi-focused distribution upgrade, the Asian Development Bank (ADB) and Tata Power Delhi Distribution Limited (TPDDL) have teamed up on a pilot BESS project as well as grid enhancements, including installation of smart meters and replacement of obsolete electrical equipment and meters.
The agreement sees ADB and Tata Power’s distribution arm access non-convertible debentures – debt instruments not backed by collateral – of ₹1.5 billion ($18.2 million) to enhance Delhi’s power distribution through grid enhancements, as well as a $2 million grant to partially finance the purchase and integration of a pilot Battery Energy Storage System (BESS).
For the capital city’s distribution upgrade, senior secured financing will be used to commission a new 66/11kV grid, enhance transformers, substations, feeder lines and switching stations, install smart meters and replace obsolete electrical equipment and meters.
According to TPDDL, the 10MWh BESS will be South Asia’s first grid-scale energy storage project at the distribution transformer level.
The system is hoped to enable electricity to be stored and delivered on demand, reducing grid instability and providing the flexibility to integrate intermittent solar and wind energy resources.
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The grant to finance the BESS is provided by Goldman Sachs and Bloomberg Philanthropies’ Climate Innovation and Development Fund (CIDF) and administered by ADB.
“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.
Smart meters and energy storage for India’s energy transition
According to the New Delhi Municipal Council, smart meter deployments are an essential aspect of the government’s Ujwal DISCOM Assurance Yojana (UDAY), launched in 2015 to ensure affordable and accessible power.
This announcement is the latest push from Tata Power to install smart tech in the country. TPDDL, which is a joint venture between Tata Power and the Government of the National Capital Territory of Delhi, serves 1.9 million customers in North Delhi.
Earlier this year in March, it was announced that TPDDL will be working closely with Enel Group’s Gridspertise to drive digitalisation and automation, one of two pilot projects between Gridspertise and Tata Power, the second being smart meter deployments.
The BESS is also being pushed by TPDDL as part of the country’s drive to integrate more storage systems, opening capacity for renewable energy sources to come online.
In 2022 India’s ministry of power targeted battery storage capacity of 4% total electricity consumption by 2030.
For this, the country would need a total storage capacity of 182GW hours by 2030.
ADB’s financing through CIDF for the pilot BESS will provide proof of concept and lessons learned by TPDDL to implement a planned additional 50MWh of BESS capacity.
Speaking on the distribution upgrade, namely the importance of the new battery system, was Tata Power CEO and managing director Praveer Sinha, who stated how such a system, “plays a crucial role in building a resilient grid and paves the way for a future-ready power distribution network.
“We thank ADB for administering this grant for the integration of the pilot BESS with TPDDL’s network. This will enable us in ensuring high-quality power supply for consumers and help integrate clean energy into the power supply mix.”
