The distribution arm of Tata Power has entered into an agreement with the Asian Development Bank for the enhancement of power distribution in the National Capital Territory of Delhi. The two entities have agreed today. TPDDL is a joint venture between both Tata Power and the government of the National Capital Territory in Delhi.The agreement has reportedly been inked to subscribe to non-convertible debentures for Rs. 1.5 billion to improve Delhis electricity distribution through grid improvements, as well as a USD 2 million grant to help partially finance the acquisition and integration of a pilot Battery Energy Storage System (BESS).The announcement stated that the senior secured funding would be used to install smart metres, upgrade and enlarge transformers, substations, feeder lines, and switching stations, commission a new 66/11-kilovolt grid, and replace outmoded electrical equipment and metres. The 10 megawatt-hours (MWh) Battery Energy Storage System will enable electricity to be stored and delivered on demand.Power distribution is a critical and vulnerable link in the supply chain for electricity, according to Suzanne Gabory, director general for Private Sector Operations at the Asian Development Bank. Improved integration of renewable energy sources and a more disaster-resistant electricity distribution system for Delhi will result from integrating a battery energy storage system at the distribution transformer level.The information given by the official says that the financing will be utilised for various purposes, including the construction of a new 66/11-kilovolt grid, expansion and enhancement of transformers, substations, feeder lines and switching stations.A sustainable grid and a future-proof power distribution network are both made possible by the battery energy storage system. We appreciate ADB managing this grant to connect the experimental BESS to the TPDDL network. According to Dr Praveer Sinha, CEO and Managing Director of Tata Power, “This would enable us to provide high-quality power supply for consumers and help incorporate sustainable energy into the power supply mix.”Indias Ministry of Power, in 2022 targeted a battery storage capacity of 4 percent of total electricity consumption by 2030. To reach the target by 2030, India would need a total battery energy storage of 182-gigawatt hours. The pilot BESS will serve as proof of concept and a learning tool for TPDDL to implement a planned additional 50 MWh of BESS capacity thanks to ADBs financing through CIDF.The CIDF, a hybrid finance facility run by ADB and formed with an initial USD 25 million philanthropic donation from Bloomberg Philanthropies and Goldman Sachs, was introduced in September 2021. The fund has the potential to mobilise up to USD 500 million in investments from the public and private sectors in support of long-term, low-carbon economic growth and to spur the switch to clean energy in South and Southeast Asia.One of the biggest integrated power businesses in India is Tata Power. With 1.9 million connections to its customers, the TPDDL, a joint venture between Tata Power and the Government of the National Capital Region of Delhi, employs approximately 3200 people. Its 510-kilometer operations region serves clients in the industrial, home, commercial, and agricultural areas. A 25-year licence to transport and distribute energy in Delhis north and northwest was also given to Tata Power earlier in 2002.On the other side, Asian Development Bank which was established in 1966, and owned by 68 members which aims to achieve a prosperous, inclusive, resilient and sustainable Asia and the Pacific.Who distributes electricity in DelhiAccording to the official data, On July 1, 2002, Delhi Vidyut Board (DVB) was divided into six successor companies. They are Delhi Power Company Limited (DPCL)-Holding Company, Delhi Transco Limited (DTL) –Transmission Company, Indraprastha Power Generation Company Limited (IPGCL) –GENCO, and three Private Distribution Companies i.e. BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL) (earlier NDPL). The Government of NCT of Delhi handed over the management of the business of electricity distribution to three private companies BRPL, BYPL and TPDDL with 51 percent equity being handed over to the private sector and 49 percent equity being retained by GNCTD through DPCL.
