Shares of this leading integrated power utility company, jumped over 5 percent after securing an order of 1,500 MW (Mega Watt) for development of Pumped Hydro- storage project from Maharashtra State Electricity Distribution Company Ltd (MSEDCL).
Price Movement
In Wednesday’s trading session, Torrent Power Limited‘s share price reached an intraday high of Rs.1,873.2 per share, up 5.2 percent from its previous close of Rs.1,780.2 apiece. The share has since retreated and is currently trading at Rs.1,830.3 each.
What is the news
Torrent Power Limited has received a Letter of Intent from Maharashtra State Electricity Distribution Co. Limited (MSEDCL) for 1,500 MW/12,000 MWh of energy storage from a pumped hydro storage project on September 17, 2024.
A formal Letter of Award will follow after approval from the Maharashtra Electricity Regulatory Commission.
The 40-year agreement will be fulfilled by Torrent Power’s upcoming plant in Raigad District. Under the Pumped Hydro Energy Storage Facility Agreement, Torrent Power will provide 1,500 MW with 8 hours of daily discharge capability (5 hours maximum continuous), while MSEDCL will supply the input energy.
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The growing use of solar and wind power necessitates energy storage for reliable and dispatchable renewable energy. Torrent Power plans to install 5 to 8 GW of pumped storage capacity across various states, with an investment of Rs.25,000 to Rs.35,000 crore.
Additionally, the company is pursuing green energy projects, including green hydrogen and green ammonia production, to support its commitment to sustainable generation and contribute to national renewable energy goals.
Capacity Enhancement
The company has a total installed generation capacity of 4.4 GWp, which includes 2.7 GW of gas-based capacity, 1.3 GWp of renewable capacity, and 362 MW of coal-based capacity.
Additionally, approximately 3.1 GWp of renewable projects are in development. The company aims to commission 10 GWp of renewable energy capacity by 2030.
Distribution Network
Torrent Power distributes nearly 30 billion units of electricity to over 4.13 million customers across various regions, including Ahmedabad, Gandhinagar, Surat, Dahej SEZ, and Dholera SIR in Gujarat; the Union Territories of Dadra and Nagar Haveli and Daman and Diu (DNH & DD); Bhiwandi, Shil, Mumbra, and Kalwa in Maharashtra; and Agra in Uttar Pradesh.
Financial Performance
For the quarter ending June 2024, Torrent Power Ltd reported a significant net profit of Rs.996 crore, marking an 87.2 percent increase compared to Rs.532 crore in Q1 FY24. Revenue from operations rose to Rs.9,034 crore, up 23.2 percent from Rs.7,328 crore in the same period.
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Company Overview
Torrent Power is a prominent Indian energy company with a presence across major states. With a generation capacity exceeding 4 GW, it operates a diverse portfolio of coal, gas, solar, and wind power plants and maintains some of the lowest transmission and distribution losses in the country.
Written by – Siddesh S Raskar
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