Reliance Group-Backed Power Stock Under Rs 50 Hit Upper Circuit After Winning Single Largest Project of 930-MW Solar And Battery Storage System In India
The stock gave multibagger returns of 139 per cent from its 52-week low of Rs 19.37 per share.
Reliance Power Limited (Reliance Power) subsidiary, Reliance NU Suntech Private Limited (Reliance NU Suntech), won a landmark 930 MW solar energy contract with a battery energy storage system project (BESS) from Solar Energy Corporation of India (SECI) in an e-reverse auction held on 9th December 2024. As per the terms of the tender, Reliance NU Suntech will also have to install a minimum storage capacity of 465 MW/1,860 MWh charged by solar power. The Letter of Award (LoA) is awaited from SECI.
Reliance NU Suntech’s successful bid for SECI’s Tranche XVII auction was won at a tariff of ₹3.53 ($0.0416)/kWh. Among India’s leading power generators, the company secured the largest individual allocation out of the five companies vying for a total quoted capacity of 2,000 MW of Inter-State Transmission System (ISTS) connected solar power projects with 1,000 MW/4,000 MWh energy storage systems.
Reliance NU Suntech’s win underlines the technological progress made in solar power with BESS in India, making it a cost-effective alternative to renewable energy options. The project will guarantee a peak power supply of four hours daily (or a four-hour discharge duration). SECI will enter into a power purchase agreement (PPA) with Reliance NU Suntech for a period of 25 years and the solar power procured will be sold to multiple discoms in India.
Reliance NU Suntech will develop the project on a build-own-operate basis and must connect to the interstate transmission system in compliance with Central Electricity Regulatory Commission regulations for interconnection with the ISTS or InSTS.
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About Reliance Power Ltd
Reliance Power Limited, part of the Reliance Group, is one of India's leading private-sector power generation companies. The company has an operating portfolio of 5,300 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.
On Thursday, shares of Reliance Power Ltd hit a 5 per cent upper circuit to an intraday high of Rs 46.24 per share from its previous closing of Rs 44.04 per share with a 2 times spurt in volume. The company has a market cap of Rs 18,500 crore. The stock gave multibagger returns of 139 per cent from its 52-week low of Rs 19.37 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.