Tata Power has secured a Letter of Award (LOA) from Solar Energy Corporation of India Limited (SECI) to provide pumped storage services, with an annual fixed charge revenue potential of ₹351.3 crore. The agreement involves providing storage capacity from a 324 MW / 2,592 MWh Pumped Storage Project (PSP) for a period of 40 years, strengthening Tata Power’s presence in the renewable energy storage sector.
The contract includes a fixed annual charge of ₹1.0841826 crore per MW per year and an annual cycle loss of 24.61%. Based on the contracted capacity of 324 MW, the total annual fixed charge will amount to ₹351.3 crore.
SECI, a Government of India enterprise, will enter into a Pumped Storage Purchase Agreement (PSPA) with Tata Power following the execution of a Pumped Storage Sale Agreement with the procuring entities.
Tata Power is required to commence the supply of storage capacity within 36 months from the effective date of the PSPA. The project is domestic in nature and does not involve any interest of Tata Power’s promoter, promoter group, or group companies in the awarding entity. The transaction does not qualify as a related party transaction.
