Shares of Tata Power are in focus on Friday, a day after the company said that it will set up a 966 MW (megawatt) hybrid renewable power project for Tata Steel, via its subsidiary TP Vardhaman Surya Limited.

Tata Power's share price opened a gap-up at ₹224.95 apiece on the BSE, higher by 1.9%, as against the closing price of the previous session at ₹220.60. At 10:55 am, shares of Tata Power were trading 0.91% higher at ₹222.60. In early trade, the company's market capitalisation stood at ₹71,080.33 crore, with 3,20,427 shares exchanging hands on the BSE as against the two-week average of 7.87 lakh shares.  At present, shares of Tata Power are trading 11.4% lower than the 52-week high of ₹251.00, which the company touched on September 7 last year. The share price of Tata Power is trading 21.3% higher than the 52-week low of ₹182.45, which the company touched on March 28. In the past one month and three months, the counter has given 9.49% and 6.13% in returns, respectively. 

According to the company, the project has a hybrid renewable capacity of 379 MW solar and 587 MW wind power. Through the project, the total renewables capacity of Tata Power Renewable Energy Limited (TPREL) reaches 7,756 MW with an installed capacity of 4,059 MW (Solar - 3,107 MW & Wind - 952 MW) and 3,697 MW under various stages of implementation. 

"The 966 MW RTC (round-the-clock) hybrid renewable power project marks a significant step towards our combined efforts to accelerate the adoption of clean and green energy to meet the net zero target," said Dr. Praveer Sinha, CEO & MD, Tata Power.

Tata Steel will invest 26% equity in the project. The project will be commissioned by June 1, 2025. Through the project, Tata Steel aims to fulfil a significant part of the company’s green energy requirements in India, saving 23,89,160 tons of CO2 emissions annually.

"This agreement aligns with our sustainability vision and will contribute to the reduction of carbon emissions associated with our operations. We believe that renewable energy is the future, and this partnership enables us to take one of the steps towards achieving our target of net zero by 2045," said T V Narendran, CEO & MD, Tata Steel.

According to the rating agency ICRA, the capacity addition in the renewable energy sector is likely to rebound in FY24 to ~17-18 GW (gigawatt). "While the wind and hybrid segments are expected to maintain or slightly improve the capacity addition in FY2024 over FY2023, the solar segment is likely to see a rebound in FY2024, with the reversal in cell and module prices enabling developers to complete the projects," the rating agency said.

(DISCLAIMER: The views and opinions expressed by investment experts on are either their own or of their organisations, but not necessarily that of and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.