This will involve grid enhancements and integrating BESS.

India’s Tata Power Delhi Distribution entered an agreement with the Asian Development Bank (ADB) for an $18.2m loan to enhance the power distribution in Delhi.

In a joint statement, Tata Power and ADB said the distribution will be improved through grid enhancements, and a $2m fund will be allocated to partially finance the installation and integration of the first battery energy storage system (BESS).

“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.

The financing will be used to commission a net 66/11-kilovolt grid, and expand transformers, substations, feeder lines and switching stations. It will also be used to install smart metres and replace old electrical equipment and metres.

Meanwhile, a 10-megawatt-hour BESS, which fund was provided by Goldman Sachs and Bloomberg Philanthropies’ Climate Innovation and Development Fund and administered by ADB, will be South Asia’s first grid-scale energy storage project at the distribution transformer level.

It needs 182 gigawatt-hours of BESS by 2030 to reach its target of a battery storage capacity of 4% of total electricity consumption by 2030.