Torrent Power shares surge 8% on bagging 300 MW wind solar hybrid project

Shares of Torrent Power Ltd surged 8% to reach a high of ₹1,249.5 apiece on NSE in morning trade on Monday after the company announced that it has bagged an order for setting up a 300 MW grid-connected wind solar project.

The cost of the hybrid wind solar project is ₹3,650 crore and it will be commissioned within 24 months from the date of the power purchase agreement (PPA), the company informed the stock exchanges in a filing.

The project, which has been awarded by Torrent Power's distribution unit, will have a tariff of ₹3.65/kwh. The contract period of the project is 25 years.

In an exchange filing on Saturday, Torrent Power said the annual capacity utilisation factor (CUF) will not be less than 50% for any of the year during the term of the PPA and the rated power capacity of wind and solar shall be in ratio of 2:1.

Torrent Power is looking to install 480 MW of wind and solar capacity against the contracted capacity of 300 MW in order to meet the 50% CUF requirement, the filing said.

Last week, Torrent Power won a solar project worth ₹1,540 crore, helping its shares to touch a 52-week high of ₹1,287.50.

That letter of award (LoA) was given by the Maharashtra State Electricity Distribution Company (MSEDCL) for the supply of 306 MW of solar power under the Mukhya Mantri Saur Krushi Vahini Yojana 2.0 scheme for feeder-level solarisation, as part of the PM-KUSUM programme.

Torrent Power is a privately owned integrated power utility involved in power generation, transmission and distribution works.

Shares of the company were trading at ₹1,201.5 apiece, up 3.5%, on NSE at 12:40 pm.