Asian Development Bank Plans To Finance Tata Power's 10MWh Battery Storage Project

The Asian Development Bank (ADB) has said it plans to provide financing to Tata Power Delhi Distribution Ltd for the deployment of a 10MWh battery energy storage pilot project in Delhi, India.

Expected to be South Asia's first grid-scale battery storage system for distribution systems, it will be used as a proof-of-concept (POC) and provide insight into how Tata Power Delhi Distribution Ltd can further deploy the 50MWh battery storage system to show.

To this end, the Asian Development Bank (ADB) will manage a $2 million fund, provided jointly by Goldman Sachs investment bank and Bloomberg Philanthropies' Climate Innovation and Development Fund. The Asian Development Bank (ADB) will partially finance the procurement and grid integration of the pilot battery storage project.

Suzanne Gaboury, Director General of Private Sector Operations at ADB, said: "The distribution system is a critical link in the electricity supply chain, and sometimes one of the most vulnerable. renewable energy and help Delhi build a more disaster-resilient electricity distribution system."
 

The announcement by the Asian Development Bank (ADB) on 10 April will be accompanied by wider support through commissioning of the new 66/11kV grid, adding transformers and expanding substations, and including the rollout of smart meter technology Other work in support of distribution grid infrastructure in major cities.

This will come from a separate senior secured facility, provided through an agreement between the Asian Development Bank (ADB) and Tata Power Delhi Distribution Ltd, which will subscribe for non-convertible bonds worth approximately US$18.2 million.

Its parent company, Tata Power, has deployed India's first grid-scale battery energy storage system in history. It is also a 10MW/10MWh battery energy storage system deployed in Delhi, supplied by Fluence, and put into operation in 2019. use.

Tata Power Delhi Distribution Ltd, jointly owned by Tata Power and the Delhi state government, will connect the battery energy storage system to its distribution network in 2021, billing it as India's first grid-connected community energy storage system.

Dr Praveer Sinha, CEO and Managing Director, Tata Power, said: "Battery energy storage plays a vital role in building a resilient grid and paves the way for building the distribution network of the future. This financing It will enable us to ensure a high-quality electricity supply for consumers and help integrate clean energy into the electricity supply mix."

There have been various assessments of how much energy storage India needs to deploy to integrate its continued adoption of renewable energy while maintaining the stability and security of electricity supply and achieving complementary goals such as electrification of rural areas.

For example, India's Central Electricity Authority (CEA) stated that by 2029-2030, India needs to deploy 27GW/108GWh of battery energy storage systems and build more than 10GW of pumped hydro storage (PHES) power generation facilities, while according to the Indian Energy Storage Alliance (IESA ) predicts that by the end of 2030, India will need to deploy about 160GWh of energy storage systems.

At the same time, the Asian Development Bank stated that the Indian Ministry of Power's goal is to store electricity equivalent to 4% of India's total electricity consumption by 2030, which is equivalent to a cumulative deployment of about 180GWh of battery energy storage systems by 2030. .

The federal government of India, through institutions such as the Solar Energy Corporation of India (SECI), has introduced tenders to support energy storage deployments and has also recently committed to funding 4GWh of energy storage systems in the current budget.