Rs 13,385 crore order book: This multibagger power generation company Signs PPA with SJVN from renewable energy project; details inside!

The stock gave multibagger returns of 120 per cent in just 1 year whereas BSE Sensex Index is up by 19 per cent.

Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Company Limited and a key player in India's renewable energy sector, has signed a significant agreement with SJVN Limited (SJVN), an Indian public sector undertaking. This agreement is a Power Purchase Agreement (PPA) for a unique 460 MW Firm and Dispatchable Renewable Energy (FDRE) project.

This project is designed to address the challenges of renewable energy integration by incorporating a combination of solar, wind, and battery storage technologies. With a total capacity of 460 MW, the plant is expected to generate nearly 3,000 million units (MUs) of clean power annually. This translates to a significant environmental benefit as well, offsetting an estimated 2,200 million kilograms (Mn. Kgs) of carbon dioxide emissions every year. Notably, this project marks TPREL's first win in the FDRE segment, showcasing its commitment to delivering reliable and sustainable energy solutions.

The agreement includes a 25-year PPA with a fixed tariff of Rs 4.38 per kWh. The plant is designed to specifically address peak power demands by supplying power in two-hour slots twice daily. To ensure reliability, the agreement mandates a minimum monthly availability of 90 per cent during peak hours and a minimum annual capacity utilization factor (CUF) of 40 per cent. The entire project is expected to be completed within 24 months from the signing date of May 3, 2024.

Also Read: 4:1 bonus shares & Rs 2,326 crore order book: This multibagger engineering company is into expansion of business with acquisition of EMC Ltd; details inside!

About Tata Power Company Ltd

Tata Power, a leading integrated power company under India's largest conglomerate Tata Group, boasts a diverse portfolio of 14,707 MW spanning the entire power spectrum. This includes the generation of both renewable (5,593 MW, forming 40 per cent of their capacity) and conventional energy, along with transmission, distribution, trading, storage solutions, and even solar cell and module manufacturing. As champions for clean energy, they've committed to achieving carbon neutrality before 2045. Beyond generation, Tata Power has established India's most comprehensive clean energy platform, offering rooftop solar solutions, microgrids, storage solutions, EV charging stations, and home automation systems.

With a robust order book of Rs 13,385 crore and a total capacity of 2,626 MW (as of March 31, 2023), Tata Power is poised for an electrifying future. Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity. The company has a market cap of over Rs 1.4 lakh crore. The company report postive numbers in its quarterly results (Q4FY24) and annual results (FY24). The stock gave multibagger returns of 120 per cent in just 1 year whereas BSE Sensex Index is up by 19 per cent. Investors should keep an eye on this Mid-Cap power stock.

Disclaimer: The article is for informational purposes only and not investment advice.