Shares of Tata Power Company continued gaining streak for the second straight session on Tuesday and rose nearly 2% intraday after its green energy arm bagged a solar project. Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, inked a pact with Endurance Technologies Limited for setting up a 12.5 MW captive solar plant in Maharashtra, as per an exchange filing.
Cheering the news, Tata Power shares opened higher at ₹257 against the previous closing price of ₹254.85 on the BSE. During the session so far, the share price of power major gained as much as 1.76% to ₹259.35, driven by surge in volume trade.
At the time of reporting, Tata Power shares were trading at ₹257.75, up 1.14%, and the market capitalisation stood at ₹82,360 crore, with 7.3 lakh shares changing hands over the counter as compared to two-week average of 5.76 lakh stocks.
The share price of Tata Power touched its 52-week high of 276.50 on September 8, 2023, and 52-week low of 182.45 on March 28, 2023. The power heavyweight has witnessed a decent rally in the past six months, rising over 30%. The counter gained 18% in 12-month and 21.5% in the calendar year 2023, while it lost over 3% in a month.
In an exchange filing on Monday, Tata Group company said, “Tata Power Renewable Energy Limited (TPREL), a leading renewable energy player and a subsidiary of The Tata Power Company Limited, has signed a Power Delivery Agreement (PDA) with Endurance Technologies Limited, a leading auto component manufacturer, through a special purpose vehicle (SPV) TP Green Nature Limited, for the development of 12.5MW AC Captive Solar Plant.”
The plant will be set up at Aachegaon in Maharashtra and will generate 27.5 million units (MUs) of electricity every year. This will help in reducing Endurance Technologies' carbon footprints and mitigate approximately 9,125 metric tonnes (MT) of carbon emissions annually, as per the release.
The project is expected to be completed within 12 months of the signing of the agreement.
Ashish Khanna, CEO, TPREL, said, “Our partnership with Endurance Technologies Limited to set up a captive solar plant will support them in adopting sustainable energy solutions…Notably, TPREL and Endurance have already experienced a fruitful partnership with a 12.5 MW captive solar power plant in Akkalkot, Maharashtra. This operational solar plant has an annual power generation capacity of 18.7 million units (MUs).”
With this proposed captive solar power plant, the overall renewable energy portfolio of TPREL reaches a total capacity of 7,889 MW. This includes 3,701 MW of projects in various stages of implementation, underscoring TPREL's commitment to expanding its clean energy footprint. The company's operational capacity currently stands at 4,188 MW comprising 3,185 MW of solar and 1,003 MW of wind energy.
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