IndiGrid, India’s first power sector InvIT, has received a Letter of Award (LOA) from BSES Rajdhani Power Limited (BRPL) to design, supply, testing, install, commission, operate and maintain a 20 MW/40 MWh battery energy storage system (BESS) in Delhi.
This project is envisaged on a build, own, operate and transfer (BOOT) basis for a period of 12 years through tariff-based competitive bidding (TBCB).
The Global Energy Alliance for People and Planet (GEAPP) will be providing debt financing for 70 percent of the total capital investment for this project. GEAPP is an alliance of philanthropy, governments, technology, policy, and financing partners with the objective of universal energy access and shift to clean energy to achieve the global critical climate goals. The anchor partners of GEAPP are IKEA Foundation, Rockefeller Foundation, Bezos Earth Fund and others.
This alliance aims to reduce 4 gigatons of future carbon emissions, expand clean energy access to one billion people, and enable 150 million new jobs.
The primary applications envisaged for the project are energy time-shift (arbitrage) and ancillary services such as frequency support capacity upgrade deferral, and resource adequacy. The project has a construction period of 12 months.
Harsh Shah, Chief Executive Officer, said, "We are very excited to announce that IndiGrid has received a Letter of Intent (LOI) / Letter of Award (LOA) for its first BESS project. India has set an ambitious goal of 600 GW of renewable energy capacity by 2031-32. Given the intermittent nature of renewable energy sources and significant capacity expansion, energy storage requirements in the power system will exponentially grow."
"Being one of the leading electricity infrastructure players across renewable and transmission segments, BESS projects are one of the focus areas for IndiGrid. Over the last few years, we have, on a pilot basis, built capabilities to undertake BESS projects at our Dhule and Kallam Substations, thereby enabling us to undertake standalone BESS projects," he added.
IndiGrid commissioned its first battery energy storage system project in April 2023. The project is integrated with its solar panels at the Dhule substation in Maharashtra.
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