The shares of this power generation company surged 2.5 percent on Friday, after it announced bagging key orders from its client. In this article, we will understand the details of this contract.
With a market capitalization of Rs 16,450 crores, the shares of Reliance Power Ltd are currently trading at Rs 41 per share, down by 24.5 percent from its 52-week high of Rs 54.2 per share. In the last one year, the stock has given a positive return of 51.61 percent.
What Happened
On Friday, Reliance Power announced that it has won a contract from SECI and made key business update. Reliance Power’s subsidiary, Reliance NU Suntech, announced that it has signed a 25-year long-term Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI), which is one of the leading Navratna Central Public Sector Enterprises.
The subsidiary is set to develop and commission Asia’s largest single-location integrated solar and battery energy storage system (BESS) project within the next 24 months with an initial capital investment of upto Rs 10,000 crores.
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The project will provide 930 MW of solar energy, complemented with 465 MW/1,860 MWh of Battery Energy Storage System (BESS). The contract has a competitive fixed tariff of Rs 3.53 per kilowatt-hour (kWh) for the power being supplied.
The project follows a December 2024 win in SECI’s Tranche XVII auction, where Reliance NU Suntech secured the largest allocation of 930 MW of solar power and 465 MW/1,860 MWh of BESS capacity. This was awarded through a competitive bidding process involving several leading energy companies. Reliance Power has submitted a Performance Bank Guarantee (PBG) of Rs 378 crores to SECI as part of the bidding process.
The whole process, from the bidding to signing the PPA, was finalized within less than 5 months, reflecting the company’s efficiency in operations and its dedication to speeding up India’s energy transformation.
About the company
Reliance Power Limited is one of India’s leading private sector power generation companies. The company has an operating portfolio of 5,305 megawatts, which includes 3960 megawatts Sasan Power Limited (the world’s largest integrated coal-based power plant). For the past seven years, Sasan Power has consistently ranked as the best operating power plant in India.
Written by Satyajeet Mukherjee
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