Torrent Power shares jump 9% to hit record high on order win. Full details

Shares of Torrent Power surged 9 per cent in Wednesday's trade after the company said it has signed a Memorandum of Understanding (MoU) with the government of Maharashtra for three pumped storage hydro projects with 5,700 MW capacity. The projects would entail an investment of about Rs 27,000 crore, the company said in a BSE filing post market hours of Tuesday. Torrent Power said it intends to execute these projects over a period of 5 years.

Following the development, the stock rose 8.88 per cent to hit a record high of Rs 666 on BSE. Its market capitalisation swelled to Rs 31,607.76 crore.  

"The projects would be executed at three sites identified by Torrent namely Karjat (3,000 MW) in Raigarh District, Maval, (1,200 MW) and Junnar (1,500 MW) in Pune District. All the sites are off-stream and the projects are planned to provide a minimum of six hours of energy storage on a daily basis," Torrent Power said.

Torrent Power said the share of renewable power, which is intermittent in nature, is rapidly increasing in the grid. This necessitates energy storage for load management and meeting peak demand.

"Pumped Storage Hydro is an established, proven and cost-effective technology for firm, flexible and dispatchable power. PSH is a configuration of two water reservoirs at different elevations. Water is pumped to the upper reservoir at the time of excess power when it is the cheapest," it said.

The company added PSH is a much superior solution than battery for energy storage as it is cheaper, has longer life of 40 years, provides longer duration storage of 6 to 10 hours with feasibility of multiple cycle operations during the day.

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