Tata Power Company Ltd arm, Tata Power Renewable Energy Ltd (TPREL), on Tuesday said it has secured a letter of award (LoA) for setting up a 200 MW solar PV project for Maharashtra State Electricity Distribution Company Ltd (MSEDCL) in Solapur, Maharashtra.

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The company may choose to source the solar modules from its own factory in Karnataka or source from elsewhere. Also, TPREL will work with the installation of the project and the power will be generated by the company. Additionally, the project will be commissioned within 18 months.

The power distribution company claims that the project is expected to offset approximately 432.94 million kg of CO2 emissions annually.

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"We are proud that TPREL is playing a crucial role in fulfilling Maharashtra’s renewable energy targets. We have a current countrywide portfolio of more than 6.5 GW and securing yet another ‘Letter of Award’ for setting up a 200 MW solar PV project underlines the trust and confidence MSEDCL has in our execution and engineering capabilities.

We are confident that this project will further strengthen our position as a leader in providing clean and reliable power in the state for years to come," said Ashish Khanna, CEO of TPREL.

Further, Tata Power revealed that the project was awarded through competitive bidding, followed by a reverse e-auction.

After having secured the letter of award for this project, the total renewables capacity of TPREL has now reached 6,503MW, with an installed capacity of 3,909 MW (Solar - 2,981 MW & Wind - 928 MW) and 2,594MW under various stages of implementation.

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At the beginning of the month, TPREL signed a power purchase agreement (PPA) with Tata Power Delhi Distribution Ltd. (Tata Power-DDL) for a 510-megawatt (MW) hybrid project. During the same period, TPREL received 2nd tranche of investment of Rs 2,000 crore from GreenForest.

Last month, Tata Power's profit surged by over 90 percent to Rs 1,052.1 crore as opposed to Rs 552 crore in the same quarter last year. Tata power also witnessed a rise in its margin at 16.5 percent against 14.9 percent in the same quarter last year.

The stocks of Tata Power settled at Rs 202.30 per share, down over 0.1 percent, when the market closed on Tuesday, March 21.

First Published:Mar 21, 2023 10:37 PM IST