Tata Power Company has significantly expanded its renewable energy portfolio by securing a Letter of Award (LoA) from the Solar Energy Corporation of India Ltd. (SECI) for a substantial pumped storage project. The agreement, valued at approximately Rs 351.3 crore annually in fixed charges, involves the development and operation of a 324 MW / 2,592 MWh Pumped Storage Plant (PSP).
This critical infrastructure project will provide essential energy storage services for a period of 40 years from its scheduled commencement of supply. Pumped storage technology is vital for grid stability, utilizing excess electricity to pump water to an upper reservoir and releasing it to generate power when demand is high, effectively acting as a large-scale battery.
Project Details and Financials
Under the terms of the LoA, Tata Power will be responsible for operationalizing the 324 MW / 2,592 MWh facility. The company anticipates commencing supply of the contracted storage capacity within 36 months from the effective date of the forthcoming Pumped Storage Purchase Agreement (PPA).
The project's financial structure includes an annual fixed charge of Rs 1.0841826 crore per MW, which translates to an approximate annual earning of Rs 351.3 crore for Tata Power based on the 324 MW contracted capacity. The agreement also accounts for an annual cycle loss of 24.61%, consistent with the bid conditions.
SECI's Role and Broader Impact
SECI, a central public sector undertaking under the Ministry of New and Renewable Energy, plays a pivotal role in promoting solar energy and other renewable sources in India. This LoA reinforces the government's push towards integrating more renewable energy into the national grid and enhancing energy security through robust storage solutions.
The agreement stipulates that SECI will enter into a Pumped Storage Purchase Agreement with Tata Power after finalizing Pumped Storage Sale Agreements with the entities that will ultimately utilize these energy storage services.
This latest win significantly bolsters Tata Power's already robust renewable energy order book. As of mid-2026, the company's solar EPC and renewable order book stood at an impressive Rs 16,300 crore, underscoring its leading position in India's green energy transition.