Tata Power Share Price: Tata Group Stock Zooms Up To 4% - What's Fueling The Rally?

The shares of Tata Power jumped by as much as 4.4% on Tuesday morning, reaching Rs 380.50 on the BSE, after its renewable energy division secured an order worth Rs 4,500 crore from NTPC to develop dispatchable renewable energy projects.

What Is Fuelling The Rally?

Tata Power has reached 10.9 GW capacity after having signed a PPA with NTPC Ltd for a 200 MW Firm and Dispatchable Renewable Energy Project.

In a stock exchange filing on April 14, the company said that its subsidiary Tata Power Renewable Energy Ltd (TPREL), has signed a Power Purchase Agreement (PPA) with NTPC Ltd, which is India's largest power company, to develop a 200 MW Firm and Dispatchable Renewable Energy (FDRE) Project.

"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 project was won by TPREL based on competitive bidding and will consist of solar, wind, and BESS technologies. 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," the statement said.

How Will This Add Value To Tata Power?

The company's total renewable utility capacity has reached 10.9 GW, with this new project. Currently, 5.5 GW of this capacity is operational, which consists of 4.5 GW of solar and 1 GW of wind energy. Additionally, the firm stated that 5.4 GW is under various stages of implementation, which is again evenly split between 2.7 GW of solar and 2.7 GW of wind projects.

These projects will in all likelihood be completed in different phases over the next 6 to 24 months in a staggered manner, it said.

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