Tata Power Wins SECI Contract For 324 MW Pumped Storage Facility

Tata Power Company Ltd. has secured a Letter of Award (LoA) from the Solar Energy Corporation of India Ltd. (SECI) for supplying energy storage services through a 324 MW/2,592 MWh pumped storage project, the company informed exchanges in a regulatory filing.

Issued by SECI, a Government of India undertaking, the award grants Tata Power the responsibility of providing pumped storage services for a tenure of 40 years from the scheduled date of commercial supply. The arrangement includes a fixed annual payment and applicable cycle loss provisions. After the execution of a Pumped Storage Sale Agreement with the purchasing entities, SECI will enter into a Pumped Storage Purchase Agreement (PSPA) with Tata Power.

The award comes as India accelerates the development of pumped storage infrastructure to support its expanding renewable energy capacity. The Central Electricity Authority has outlined a roadmap to develop around 100 GW of pumped storage capacity by 2035-36 to meet the country's long-duration energy storage requirements.

On 20 July at 12:33 PM, Tata Power shares were trading at ₹381.65, up 1.17% on the National Stock Exchange.

Supply To Start Within Three Years; Project To Earn ₹351.3 Crore Annually

Under the terms of the LoA, Tata Power must make the 324 MW/2,592 MWh pumped storage facility operational and begin delivering storage capacity within 36 months from the effective date of the PSPA.

The project has been awarded at a fixed annual tariff of ₹1.0841826 crore per MW, while the annual cycle loss has been set at 24.61%. Based on the full contracted capacity of 324 MW, the company is expected to receive a fixed annual payment of about ₹351.3 crore.

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