Torrent Power Share Price Jumps After Winning Pumped Hydro Storage Project In Maharashtra

Shares of Torrent Power Limited gained over 5% on Wednesday after the company received a Letter of Intent (LoI) for an order from the Maharashtra State Electricity Distribution Company Limited. The stock opened 3% higher at Rs 1,834 apiece on the BSE before rallying further to hit an intraday high of Rs 1,873.20.

In an exchange filing, the company said it received a letter of intent from the MSEDCL to procure 1,500 Megawatt (MW) and 12,000 MWh energy storage capacity from a pumped hydro storage project.

Torrent Power plans to supply the storage capacity for the order from its upcoming pumped hydro storage plant in Raigad, Maharashtra.

As a part of its Pumped Hydro Energy Storage Facility Agreement (PHESFA) with MSEDCL, Torrent Power will provide a contracted capacity of 1,500 MW capable of a scheduled discharge of 8 hours (with a maximum continuous discharge of 5 hours) per day. MSEDCL shall provide the input energy for charging, the filing added.

MSEDCL will issue a detailed Letter of Award (LoA) after obtaining approval from the Maharashtra Electricity Regulatory Commission (MERC).

Torrent Power said that the increasing penetration of green energy in electricity generation will drive a need for energy storage solutions. The company added that it has identified Pumped Storage Project (PSP) sites in multiple states and intends to install about 5 - 8 Gigawatt of Pumped Storage capacity entailing an investment of ₹25,000 to ₹35,000 crore.

Torrent Power said that it is also working on other renewable energy projects such as Green Hydrogen and Green Ammonia Production projects.

Shares of Torrent Power have jumped over 152 % in the past one year with a gain of 53% in the last six months. On a year-to-date basis, the power company's stock has delivered a return of over 93%.

At around 10:15 AM, shares of Torrent Power Ltd. were trading 2.29% higher at Rs 1820.65 apiece on BSE.