Tata Power Secures LOA from SECI for Pumped Storage Services
Tata Power Company Limited has secured a Letter of Award (LOA) from the Solar Energy Corporation of India Limited (SECI), a Government of India Enterprise, for providing pumped storage services at a significant scale. The contract pertains to a 324 MW / 2,592 MWh Pumped Storage Plant (PSP).The LOA specifies that Tata Power will provide energy storage services for 40 years, commencing from the Scheduled Commencement of Supply Date. SECI is set to sign the Pumped Storage Purchase Agreement (PPA) with the company subsequent to the signing of the Pumped Storage Sale Agreement with various buying entities.
As part of the terms and conditions outlined in the Letter of Award issued by SECI Limited, details regarding the scope and financial considerations have been specified.
| Entity Awarding Contract | Tata Power Company Limited |
|---|---|
| Awarding Entity | Solar Energy Corporation of India (SECI) Limited |
| Nature of Transaction | Provision of Pumped Storage Service from PSP |
| Capacity | 324 MW / 2,592 MWh |
| Contract Duration | 40 Years |
The contract is domestic in nature. The annual fixed charge for the services has been set at ₹ 1.0841826 crore per MW per Year, with an Annual Cycle loss of 24.61%. Based on the awarded capacity, the total annual fixed charge amounts to ₹ 351.3 crore.
The LOA outlines that the company must commence supplying the storage capacity within 36 months of the effective date of the PPA.
TATAPOWER Stock Price Movement
Shares of Tata Power Company Limited on Friday slipped slightly, closing at ₹377.25 after shedding 0.03% in trading. The stock traded within a narrow intraday range defined by a low of ₹375.25 and a high of ₹379.20, with approximately 2.6 million shares transacted.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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