Tata Power notified that its subsidiary, Tata Power Delhi Distribution Ltd (TPDDL) has inked a deal with Asian Development Bank (ADB) to raise Rs 1.5 billion through non-convertible debentures to improve Delhi’s power distribution through grid modifications. Aside from the non-convertible debentures, ADB will arrange a $2 million grant to TPDDL to fund the procurement and integration of a pilot battery energy storage system (BESS) with the TPDDL network.
The 10MWh BESS will allow electricity to be stored and provided on demand, reducing grid instability and allowing for the integration of intermittent solar and wind energy resources. The Climate Innovation and Development Fund (CIDF) of Goldman Sachs and Bloomberg Philanthropies contributed funding for the BESS, which was administered by ADB.
TPDDL will deploy the $18.2 million in senior secured financing to build and expand transformers, substations, feeder lines, and switching stations, install smart meters, and replace antiquated electrical equipment and metres.
CIDF is a hybrid finance facility managed by ADB that was launched in September 2021 with a $25 million philanthropic donation from Bloomberg Philanthropies and Goldman Sachs. The fund has the potential to attract up to $500 million in private and public sector investments to assist low-carbon economic development and catalyse a clean energy transition in South Africa.
In September 2022, TPDDL requested bids for 255 MW of wind-solar hybrid power projects across India, with a greenshoe option for an additional 255 MW. The projects will be established on a build, own, and operate basis.
