Tata Power stock in focus as arm bags 200 MW project from SJVN

Shares of Tata Power Ltd will be in focus on Wednesday morning after a subsidiary of the company -- Tata Power Renewable Energy Limited (TPREL) -- received a Letter of Award (LOA) for developing a 200 MW firm and dispatchable renewable energy (FDRE) project with SJVN Ltd.

"To meet the 200 MW FDRE requirement, the plant has been meticulously sized with a hybrid combination of solar, wind, and battery storage of appropriate capacities. This ensures that the energy generated by the plant is dispatched as and when needed by discoms during peak hours, providing stability to the grid," Tata Power said.

Tata Power, which had 37.57 lakh retail investors owning 23.33 per cent stake as on September 30, saw its shares climbing 28 per cent year-to-date. This is against 11.79 per cent rise in the BSE Power index during the same period.

PSU stock SJVN, on the other hand, is up 141 per cent year-to-date. SJVN is involved in hydroelectric and renewable power generation and transmission and has been designated as the Renewable Energy Implementing Agency (REIA) by MNRE for achieving the nation's target of achieving 500 GW by 2030.

In a BSE filing, the Tata group firm said FDRE provides round-the-clock power supply and supports the discoms in meeting renewable purchase obligation (RPO) and energy storage obligation (ESO).

"This is the first FDRE power tender won by TPREL, showcasing its commitment to ushering in reliable and sustainable energy solutions. The tender includes a Greenshoe option, allowing for additional capacity beyond the initial 200 MW," Tata Power said.

This strategic collaboration with SJVN, Tata Power said, marks a significant milestone in TPREL’s journey to expand its portfolio and contribute to the nation's sustainable energy goals.

Tata Power estimates the project to be commissioned within 24 months from the PPA execution date.

The project was awarded through competitive bidding, followed by a reverse e-auction.  "The installation will offset 9 lakh metric tonnes of CO2 emissions annually. With this win, the total renewables capacity of TPREL reaches 8,314 MW, which comprises 4,100 MW of projects in different phases of development and with an operating capacity of 4,214 MW, including 3,200 MW in solar projects and 1,014 MW in wind projects," Tata Power said.

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