Shares of Reliance Power Ltd hit a 5% upper circuit on 12 December after the company’s subsidiary announced securing a significant solar energy project. 

Solar Energy Corporation of India (SECI) awarded a 930 megawatt (MW) solar energy contract with a battery energy storage system project (BESS) to Reliance NU Suntech, the company’s subsidiary, in an e-reverse auction on 9 December 2024.

In its regulatory filing, the company said, “As per the terms of the tender, Reliance NU Suntech will also have to install a minimum storage capacity of 465 MW/1,860 MWh charged by solar power. The Letter of Award (LoA) is awaited from SECI. Reliance NU Suntech’s successful bid for SECI’s Tranche XVII auction was won at a tariff of ₹3.53 ($0.0416)/kWh.”

The company, one of India’s top power producers, received the largest individual share among five contenders competing for a combined capacity of 2,000 MW of Inter-State Transmission System (ISTS)-connected solar power projects, paired with 1,000 MW/4,000 MWh energy storage systems.

The project will ensure a peak power supply of four hours each day, according to Reliance Power. Reliance NU Suntech and SECI will sign a 25-year power purchase agreement (PPA), and the solar energy acquired will be distributed to several discoms in India. 
 
The subsidiary intends to construct the project using a build-own-operate model, and in order to connect to the ISTS or InSTS, it must comply with the Central Electricity Regulatory Commission’s rules for interstate transmission system connections. 

Reliance Power, a prominent private sector power-producing company in India, is a member of the Reliance Group.

At 11:37 am, the shares of Reliance Power were trading 4.45% higher at Rs 46 on NSE.

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