Tata Power Stock Updates

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Tata Power to develop 2,800 MW Pumped Storage Hydro plant with Rs 12,550 crore capex

Tata Power Company Limited announced the development of two Pumped Storage Hydro plants (PSP) with 1,000 MW at Bhivpuri and 1,800 MW capacity at Shirawta in Pune district.

Before moving forward, let’s understand how a pumped storage hydro plant works. A pumped storage hydro plant releases water from the upper reservoir to the lower reservoir, generating electricity by releasing the water downhill. Then the water is stored in the lower reservoir to again pump it back to the upper reservoir during the lower power demand period using renewable energy. In this project, the turbine is expected to work as a pump while pumping the water uphill. This can help to stabilize the grid and make it more reliant on renewable energy sources.

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Image Source: Tata Power investor presentation.

2,800 MW Pumped Storage Hydro plant
Both of these projects are brownfield projects with no additional land acquisition. The company is expected to make a capital investment of Rs 12,550 crore for these projects. The first 1,000 MW Bhivpuri PSP is expected to start by mid-2024 and is expected to be completed by 2027. The second 1,800 MW Shirawta PSP is expected to start by mid-2024 and is expected to be completed by 2028.

Currently, Tata Power’s pumped storage hydro (PSP) projects are making progress. The feasibility study report (FSR) has been submitted to the Central Electricity Authority (CEA) for approval, and the project layout has been approved for survey and investigation. Investigation is underway, and the terms of reference have been approved by the Ministry of Environment, Forest and Climate Change (MoEFCC). The detailed project report (DPR) is in progress and is expected to be completed by January 2024. An application for connectivity has been made to the Central Transmission Utility (CTU), and the first consultation meeting has been held. An order has been placed for pre-order engineering.

The company has additional potential of 9 GW capacity at their 5 other reservoirs. The company is also expected to make a capital investment of Rs 60,000 crore by 2027, with 45% deployment in the renewable energy sector. The company is also expected to double its revenue, EBITDA, and PAT by FY27. The company’s clean and green capacity is expected to account for 70% of overall capacity in 2030.

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*Image Source: Tata Power investor presentation.

Stock Price Movement

Today, the Tata Power stock opened at Rs 273.30, with a high and low of Rs 273.30 and Rs 265.10, respectively. The stock is currently trading at Rs 266.30, which decreased by 2.56%. The stock has a 52-week high of Rs 276.50 and a 52-week low of Rs 182.45. The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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Tata Power subsidiary renews Union Bank partnership to boost rooftop solar adoption among residential consumers

The company aims to promote solar energy adoption in alignment with the Government’s PM-Surya Ghar Muft Bijli Yojana.

Today, the shares of Tata Power Limited soared 1.49%. The company’s current market capitalisation is Rs 1,27,014.75 crore.

Recent development

Tata Power Solar Systems Limited is a leading solar company in India and a subsidiary of Tata Power Renewable Energy Limited. It has renewed and expanded its partnership with Union Bank of India to provide financing solutions for residential, commercial, and industrial (C&I) customers.

The renewed scheme offers loan limits of up to Rs 15 lakh for residential and Rs 16 crore for C&I customers, with financing options of up to 80% and 85% respectively. Both categories will have access to collateral-free financing options, with loan tenures extended up to 10 years.

This three-year agreement, covering both residential and C&I segments, aims to promote solar energy adoption in alignment with the Government’s PM-Surya Ghar Muft Bijli Yojana. As part of this collaboration, a special scheme tailored for residential customers has been introduced to improve accessibility and affordability, contributing to the wider adoption of solar solutions.

Business development:

Tata Power is making significant strides in renewable energy projects it is aiming to achieve net zero emissions by 2045 and surpassing 10,000 MW of renewable projects in the next quarter. Currently, the company has commissioned 72 MW of renewable capacity and has a robust project pipeline of 4,752 MW.

Additionally, its manufacturing plant has successfully commissioned 3 GW of solar modules, with plans for the 4th GW to commence soon. Furthermore, in terms of electric vehicle charging infrastructure, Tata Power has energized 412 public EV chargers, totalling 5,300 chargers in operation, including home and bus chargers.

Looking ahead, Tata Power anticipates new investments in renewables, transmission, and pump hydro projects to drive future growth.

About the company

Tata Power Company Ltd is a major player in electricity generation, transmission, and distribution. With a commitment to renewable energy, it strives to achieve complete electricity generation from renewable sources. Additionally, the company manufactures solar roofs and has ambitious plans to establish 1 lakh EV charging stations by 2025. As India’s largest vertically integrated power company, Tata Power is at the forefront of sustainable energy solutions.

Furthermore, the stock has witnessed significant buying activity as it has given returns of more than 91% in the last 1 year.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.