Tata Power Delhi Distribution Limited (TPDDL), the delivery arm of The Tata Power Company Limited (Tata Power), has entered into a partnership with the Asian Development Bank (ADB) to improve Delhi's distribution of electricity, the organization said in its regulatory filing. As part of the a contract, ADB is to subscribe to non-convertible debentures worth Rs 150 crore ($18.2 million). The funds will be utilised for grid enhancements.
“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.
Additionally, TPDDL will receive a $2 million grant from ADB to partially finance the purchase and integration of a pilot Battery Energy Storage System (BESS). “The battery energy storage system plays a crucial role in building a resilient grid and paves the way for a future-ready power distribution network," said Praveer Sinha, CEO & Managing Director, of Tata Power.
He added that ADB's investment will enable Tata Power in ensuring a high-quality power supply for consumers and help integrate clean energy into the power supply mix. The proceeds from the senior secured financing will be utilized for various purposes, including the construction of a new 66/11-kilovolt grid, expansion and enhancement of transformers, substations, feeder lines, and switching stations.
It will also be used to install smart meters and replace outdated electrical equipment and meters, the company said. Tata Power's scrip was trading at Rs 196.50, up 0.69% on the BSE.
