Torrent Power witnessed a significant surge of almost 7 percent during the early trading hours on March 18, buoyed by the news of securing a letter of award for the development of 300 MW wind-solar hybrid projects.
As of 9:42 am, Torrent Power shares were trading at Rs 1,226.60 on the NSE, indicating a strong positive response from investors.
The proposed project is expected to offer a tariff rate of Rs 3.65/kWh, with a contractual period of 25 years. Notably, this achievement was attributed to Torrent Power’s distribution unit.
With an estimated project cost of Rs 3,650 crore, the company aims to complete the commissioning within 24 months from the signing of the power purchase agreement (PPA). This milestone underscores Torrent Power’s commitment to sustainable energy initiatives and reinforces its position in the renewable energy sector.
The company has outlined strict requirements within the power purchase agreement (PPA), stipulating that the annual capacity utilization factor (CUF) must not fall below 50 percent throughout the contract term. Moreover, the wind and solar capacities must be in a specific 2:1 ratio.
To meet the mandated 50 percent CUF, the company intends to install 480 MW of wind and solar capacity, exceeding the contracted 300 MW.
In a significant development last week, the company secured a solar project valued at Rs 1,540 crore. This victory propelled the company’s shares to reach a 52-week high of Rs 1,287.50.
The letter of award (LoA) for this project was granted by the Maharashtra State Electricity Distribution Company (MSEDCL). It entails the supply of 306 MW solar power under the Mukhya Mantri Saur Krushi Vahini Yojana 2.0 scheme, focusing on feeder-level solarization under the PM KUSUM Scheme.
Sources: moneycontrol.com
Disclaimer: The opinions and investment insights provided are intended solely for informational purposes and should not be construed as financial advice. Bystox.in strongly advises users to consult certified financial experts or professionals before making any investment decisions. We emphasize the importance of conducting thorough research and seeking personalized guidance tailored to individual financial goals and circumstances. Please be aware that investing involves inherent risks, and past performance is not indicative of future results. Bystox.in does not assume any responsibility or liability for the accuracy, completeness, or reliability of the information provided. Users are encouraged to exercise caution and diligence in their investment endeavors. Remember, your financial well-being is paramount, and seeking expert advice is highly recommended.