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.
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.
*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.