Shares of Tata Power Company Ltd. dropped 1% from a day’s high of Rs 447.10 on 18th September, despite the company announcing it had received a letter of award (LoA) for a 400 MW wind-solar hybrid project in Maharashtra. The LoA was awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), according to an exchange filing.

The project has an initial contract capacity of 200 MW, with a greenshoe option for an additional 200 MW, making it Tata Power Renewable Energy Limited’s largest renewable energy project in Maharashtra.

It is part of MSEDCL’s broader plan to meet the state’s Renewable Purchase Obligation (RPO) and future power demands at competitive rates. The LoA was awarded through a competitive bidding process conducted via an electronic reverse auction.

Completion of the project is anticipated within 24 months from the date of execution of the Power Purchase Agreement (PPA) between TPREL and MSEDCL and will likely result in an estimated annual reduction of approximately 895 million kilograms of CO2.

The hybrid solar and wind energy project will supply electricity to MSEDCL, efficiently utilising local land resources and supporting regional development.

With this LoA, TPREL’s total renewable energy capacity has reached 10.5 GW, including 5.7 GW in various stages of development. Its operational capacity is now 4.8 GW, comprising 3.8 GW from solar projects and 1 GW from wind projects.

So far in 2024, the stock has surged almost 34%. The company’s market capitalisation dropped to Rs 140,786 crore.

At 3:30 PM, the shares of Tata Power closed 1.10% lower at Rs 440.20 on NSE.

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