Torrent Power bags 1,500 MW pumped hydro storage project, stock rises up to 5.2%; check details

Torrent Power on Tuesday said it has bagged a 1,500 MW pumped hydro storage project (PSP) from Maharashtra State Electricity Distribution Co. Ltd.

Torrent Power Ltd has emerged as a successful bidder and has received Letter of Intent (LOI) from Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) on 17th September 2024 for procurement of 1,500 MW/12,000 MWh Energy Storage Capacity from Pumped Hydro Storage Project, the company said in a statement.

Following the annoucement, Torrent Power shares rose 5.2% in the market opening. The stock trades 2.38% higher at ₹1,822 per share on NSE at 9:20 am.

Detailed letter of award will be issued by MSEDCL upon obtaining necessary approval from the Maharashtra Electricity Regulatory Commission (MERC) in terms of the tender document on the quoted tariff, it said.

The pumped hydro storage project will supply power to MSEDCL for 40 years as part of the deal, it said.

Under the Pumped Hydro Energy Storage Facility Agreement (PHESFA), the company shall make available to MSEDCL a contracted capacity of 1,500 MW capable of scheduled discharge of eight hours (with maximum continuous five hours) per day.

Increased penetration of solar and wind in electricity generation will create the need for energy storage solutions for providing firm, reliable and dispatchable renewable energy power, the company said, adding that it has identified PSP sites in multiple states.

The company has already announced that it intends to install about 5-8 GW of PSP capacity entailing investment of ₹25,000-35,000 crore.

Torrent Power is one of the largest companies in the country's power sector with presence across the entire power value chain -- generation, transmission, and distribution. The company's stock has given consistent return to investors, Torrent Power shares are up over 95% so far in 2024.