Torrent Power Shares Soar on Securing the 2,000 MW Energy Storage Deal

9 Oct 2024 , 01:13 PM

Torrent Power Ltd. experienced a significant stock increase, rising by 9.25% on Wednesday, October 9, 2024, marking its third gain in the last four trading sessions and reaching an all-time high.

The surge in shares followed the company’s announcement on October 8 that it received a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Ltd (MSEDCL).

The LoA is for a long-term supply of 2,000 Megawatts (MW) of energy storage capacity from Torrent Power’s InSTS Connected Pumped Hydro Storage Plant.

This capacity includes 1,500 MW previously awarded via a letter of intent issued on September 17, 2024, with an additional 500 MW allocated under the current tender.

MSEDCL will procure this energy storage capacity for a period of 40 years, enhancing the state’s renewable energy infrastructure.

Torrent Power plans to provide this capacity through its upcoming pumped hydro storage plant located in Maharashtra. The Energy Storage Facility Agreement (ESFA) stipulates a contracted capacity of 2,000 MW, capable of scheduled discharge for 8 hours daily, with a maximum continuous discharge of 5 hours.

As of June 30, 2024, Torrent Power has an installed generation capacity of 4.4 GWp, including 2.7 GW of gas-based, 1.3 GW of renewable, and 362 MW of coal-based capacity, with an additional 3.1 GWp of renewable projects in development.