Mr. Sanjay Banga, CEO, TATA Power-DDL and Mr. Vikram Kumar, Manager-Infrastructure and Natural Resources, for IFC Asia Pacific (member of World Bank) signing the MoU as the two companies join hands to conduct a study to assess the benefits of storage in Power Distribution space.
- First-of-its-kind study in South Asia to assess the benefits of storage in electricity distribution
- Study to facilitate assessment of battery storage potential in other Smart Cities
TATA Power Delhi Distribution (TATA Power-DDL) and International Finance Corporation (IFC), a member of the World Bank Group, have joined hands to assess storage capacity requirement in Tata Power-DDL's area for ensuring sustainable and reliable power distribution and to formulate a business model for storage deployment in distribution utilities.
The MoU was signed by Mr. Sanjay Banga, CEO, TATA Power-DDL and Mr. Vikram Kumar, Manager-Infrastructure and Natural Resources, for IFC Asia Pacific.
Over the next eight months, the two organizations will jointly conduct this first-of-its-kind study in South Asia to examine and recommend the optimum storage capacity that can be implemented for the company's 2000 MW distribution system. Based on the results, an assessment will be made of the storage potential in other smart cities.
In India, the way cities consume power is changing drastically as renewable energy becomes mainstream. With electric mobility poised to burgeon, the demand for stable and high-quality power is expected to rise sharply. In such a scenario, a viable business model for storage in utilities will make power supply more reliable, while making the grid more resilient and enhancing disaster management capability.
"At TATA Power-DDL, we are constantly integrating new technologies and becoming future-ready. Today, battery storage has become a crucial part of electricity grid for adoption of renewable energy sources and to meet the ever-increasing demand. The association with IFC will help us in leveraging storage optimally and further strengthening our network performance to provide quality power supply to our consumers." said Mr. Sanjay Banga, CEO, TATA Power-DDL.
By July 2019, India had 36.5 GW of wind power and 30 GW of solar power, with a plan to expand to 60 GW of wind and 100 GW of solar by 2022. During a typical day in 2022, solar power may meet up to 44 percent of the total power demand. In addition, wind capacity of 60 GW may bring about a variation of up to 8 GW in as little as 5 hours. This variability and uncertainty will require enough response capability to accommodate sudden drops in output, which can only happen with effective and viable storage systems.
"Power is a key ingredient of economic growth in India and will become even more crucial with the changing supply and consumption patterns. Our focus on storage is aligned with the government's priorities and IFC's own strategy to plug critical development gaps," said Mr. Vikram Kumar, Manager, Infrastructure and Natural Resources for IFC Asia Pacific.
Tata Power-DDL and IFC will share the findings of the project with all stakeholders, including policymakers and regulatory authorities. Optimizing storage and peak load management will benefit the 1.7 million consumers in Tata Power-DDL's area. It will also reduce the company's cost by enabling it to buy cheaper power during off-peak hours and distributing it when the demand is higher.
About TATA Power-DDL:
TATA Power Delhi Distribution Limited (Tata Power-DDL ) is a joint venture between Tata Power and the Government of NCT of Delhi. Tata Power-DDL distributes electricity in North Delhi and serves a populace of 7 million spread over 510 sq.km. The company has successfully met record peak power demand of 2074 MW in 2019. TATA Power-DDL has been the frontrunner in implementing power distribution reforms and is acknowledged for its consumer-friendly practices. Since privatization, the Aggregate Technical & Commercial (AT&C) losses in TATA Power-DDL areas have shown a record decline. Today, AT&C losses stand at sub 8% which is an unprecedented reduction of over 85% from an opening loss level of 53% in July 2002. Earlier this year, the company inaugurated India's first grid-scale battery-based energy storage system in Rohini, Delhi. The 10 Megawatt MW grid-connected system will pave the path for wider adoption of grid-scale energy storage technology across India. To learn more about TATA Power-DDL, please visit: www.tatapower-ddl.com
About IFC:
International Finance Corporation (IFC)-a sister organization of the World Bank and member of the World Bank Group-is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY18, we delivered $23.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit http://www.ifc.org