Torrent Power Stock Price closed flat on Tuesday. The stock opened the session at Rs 1808 and touched intraday high of Rs 1900. The stock is trading very close to its 52-week high at Rs 1908. The news about project won by Torrent Power came after market hours.

Torrent Power has secured a significant win by bagging a 1,500 MW pumped hydro storage project from Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), enhancing its role in India’s growing energy storage landscape. On September 17, 2024, Torrent Power was awarded the Letter of Intent for the procurement of 1,500 MW/12,000 MWh energy storage capacity. This project, which is contingent on approval from the Maharashtra Electricity Regulatory Commission, will supply power for the next 40 years. Torrent Power aims to strengthen its renewable energy portfolio through this and similar initiatives, as it plans a large-scale expansion into pumped hydro storage with investments reaching up to Rs 35,000 crore.

Torrent Power Secures 1,500 MW Pumped Hydro Storage Project

On Tuesday, Torrent Power emerged as the winning bidder for a 1,500 MW Pumped Hydro Storage Project (PSP), awarded by Maharashtra State Electricity Distribution Co. Ltd. The project will provide Maharashtra with a total energy storage capacity of 12,000 MWh, making it a crucial component of the state’s renewable energy infrastructure. Torrent Power received the Letter of Intent (LOI) on September 17, 2024, solidifying its position as a major player in energy storage solutions.

40-Year Agreement for Energy Supply

Under the terms of the deal, Torrent Power will supply MSEDCL with 1,500 MW of energy storage capacity for 40 years. This storage facility will offer eight hours of scheduled discharge per day, with a maximum continuous five-hour discharge period. This long-term agreement will help ensure the availability of reliable, dispatchable power, especially as the state's renewable energy generation capacity grows, driven by solar and wind resources.

Regulatory Approvals Still Pending

Torrent Power's receipt of the LOI is contingent upon necessary approvals from the Maharashtra Electricity Regulatory Commission (MERC). Once the MERC approves the quoted tariff and terms, MSEDCL will issue a detailed Letter of Award, allowing the project to officially move forward. These regulatory steps are critical to ensuring that the project aligns with state energy policies and pricing structures.

The Need for Energy Storage Amid Renewables Growth

As India continues to ramp up its solar and wind energy generation, the demand for energy storage solutions has become increasingly important. These storage projects, like Torrent Power's pumped hydro initiative, provide the grid with firm, reliable, and dispatchable renewable power by storing excess energy during low-demand periods and releasing it when needed. Torrent Power is capitalizing on this growing need, positioning itself as a leader in the energy transition.

Massive Investment Plans in Pumped Hydro Storage

Torrent Power has ambitious plans to invest Rs 25,000-35,000 crore into the development of 5-8 GW of pumped hydro storage capacity across multiple states in India. The company has already identified several PSP sites as part of its broader strategy to diversify into energy storage solutions. This large-scale investment underscores the company's commitment to supporting India’s transition to a more sustainable and reliable energy system.

A Key Player in India’s Power Sector

Torrent Power, part of the Rs 41,000-crore Torrent Group, is one of the largest companies in India’s power sector. The company operates across the entire power value chain, from generation to transmission and distribution. With revenue of Rs 27,183 crore, Torrent Power is well-positioned to lead the charge in integrating renewable energy storage solutions, further consolidating its role as a major player in India's energy sector.