Tata Power shares jump 4% after renewable arm bags order from NTPC

Shares of Tata Power surged over 4% on Tuesday after its renewable energy arm bagged an order worth 4,500 crore from state-owned power company NTPC . Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power, has signed a power purchase agreement (PPA) with NTPC to set up 200 MW firm and dispatchable renewable energy project. 

With this project, TPREL’s total renewable utility capacity has reached 10.9 gigawatt (GW). Currently, 5.5 GW of this capacity is operational, comprising 4.5 GW of solar and 1 GW of wind energy. Additionally, 5.4 GW is under various stages of implementation, evenly split between 2.7 GW of solar and 2.7 GW of wind projects. These ongoing projects are expected to be completed in phases over the next 6 to 24 months in a staggered manner. 

Boosted by the development, Tata Power share price jumped 4.4% to hit an intraday high of ₹380.50 on the BSE. The market capitalisation of the power heavyweight climbed to ₹1.2 lakh crore. Early today, the Tata group stock opened 3.4% higher at ₹377 against the previous closing price of ₹364.50.

In an exchange filing last evening, Tata Power said that Tata Power Renewable Energy (TPREL) has signed a PPA with NTPC for renewable energy project, with provisions for assured power supply as per buying entity scheduling needs. The project was won by TPREL based on competitive bidding and would consist of Solar, Wind and BESS Technologies.

The contract size is estimated to be around ₹4,500 crore and has to be completed within 24 months or 2 years. 

“The project, spread across multiple locations in India is set to be completed within 24 months and is expected to generate approximately 1,300 million units (MUs) of electricity annually, mitigating over 1 million tons of carbon dioxide emissions per year,” the release noted.

A key feature of this initiative is the commitment to a 4 hour peak power supply, ensuring at least 90% availability during peak demand hours to support the growing energy needs of distribution companies, as per the release.

The release further highlighted that the collaboration reinforces TPREL’s position as a leader in India’s renewable energy sector with hybrid and complex renewable projects, consisting of Solar, Wind and battery storage.

“With a steadfast commitment to sustainability and innovation, the Company continues to drive forward India’s mission of a greener and more resilient clean energy future,” it added.

Tata Power owns a diversified portfolio of 15.7 GW, with clean energy constituting 44% (6.8 GW) of its total capacity. Committed to achieving carbon neutrality before 2045, the company has successfully partnered with public and private entities across India's generation, transmission, and distribution sectors, serving approximately 12.5 million customers nationwide.

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