Shares of Tata Power Company Ltd surged 4% on 15 April after the company announced that its subsidiary, Tata Power Renewable Energy, signed a Power Purchase Agreement with NTPC for setting up a 200-megawatt (MW) firm and dispatchable renewable energy project.

In its regulatory filing, the company said, “We wish to inform you that Tata Power Renewable Energy Limited (‘TPREL’), a subsidiary of the company signs a power purchase agreement (‘PPA’) with NTPC Limited to set up a 200 MW firm and dispatchable renewable energy project.”

The Rs 4,500 crore project is slated for completion within 24 months and includes a critical commitment to provide a 4-hour peak power supply, ensuring at least 90% availability during peak demand periods to support the rising energy requirements of distribution companies.

Reports indicate the project will generate around 1,300 million units (MUs) of electricity annually and help reduce over 1 million tonnes of carbon dioxide emissions each year. Tata Power Renewable Energy secured the project through a competitive bidding process, and it will feature a mix of solar, wind, and battery energy storage system (BESS) technologies.

With this addition, Tata Power Renewable Energy’s total renewable utility portfolio now stands at 10.9 GW, of which 5.5 GW is currently operational, comprising 4.5 GW of solar and 1 GW of wind energy. The remaining 5.4 GW is under development, equally split between 2.7 GW each of solar and wind projects.

These projects are set to be commissioned in phases over the next 6 to 24 months.

At 11:36 am, the shares of Tata Power were trading 3.91% higher at Rs 378.70 on NSE.

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