Collaborations Sustainable Power

TATA Power -DDL Joins Hands with IFC to scale-up Battery Storage for Sustainable and Reliable Power Distribution

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  • 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.

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.

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.

Tata Power Delhi Distribution Limited (Tata Power-DDL) is a joint venture between Tata Power and the Government of NCT of Delhi with the majority stake being held by Tata Power Company (51%). Tata Power-DDL distributes electricity in North & North West parts of Delhi and serves a populace of 7 million. The company started operations on July 1, 2002 post the unbundling of the erstwhile Delhi Vidyut Board (DVB). With a registered consumer base of 1.8 million and a peak load of around 2106 MW, the company's operations span across an area of 510 sq. kms. Tata Power-DDL has been the front-runner in implementing power distribution reforms in the capital city 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. AT&C loss is a measure of overall efficiency of the distribution business which is the difference between units input into the system and the units for which the payment is collected. Today, AT&C losses stand at 7.3 % which is an unprecedented reduction of around 84% from an opening loss level of 53% in July 2002.

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