India Grid Trust (IndiGrid) has won its first battery energy storage system (BESS) project.
In a release, IndiGrid – India’s first power sector infrastructure investment trust (InvIT) — said that it has won the mandate for design, supply, testing, installation, commissioning, and O&M of a 20 MW/40 MWh BESS project to be set up in Delhi.
BSES Rajdhani Power Ltd awarded this project to IndiGrid on build, own, operate & transfer (BOOT) basis with a concession period of 12 years, under the tariff-based competitive bidding (TBCB) route.
The primary applications envisaged for the project are energy time-shift (arbitrage) and for ancillary services such as frequency support capacity upgrade deferral and resource adequacy.
The project, which has a gestation period of 12 months, will receive debt financing (amounting to 70 per cent of the total capital cost) from Global Energy Alliance for People and Planet (GEAPP).
Energy Storage: A focus area
Commenting on the development, Harsh Shah, Chief Executive Officer, IndiGrid, said: “India has set ambitious goal of 600 GW of renewable energy 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.
Featured photograph shows IndiGrid’s BESS installation at its Dhule substation in Maharashtra.