Torrent Power shares zoom 9% on securing 2,000 MW energy storage contracts from MSEDCL

Shares of Torrent Power today surged 9% to its fresh 52-week high of Rs 1,983.70 on the BSE after announcing that it has signed 2 letters of award (LoA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the supply of 2,000 Megawatt (MW) Energy Storage Capacity.“Torrent Power Limited, one of the leading private sector integrated power utility with presence across generation, transmission and distribution and part of the Torrent Group, has received letter of award from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for long-term supply of 2,000 Megawatt (MW) Energy Storage Capacity from InSTS Connected Pumped Hydro Storage Plant,” said the company in a filing to the exchanges.

The 2 contracts that the company has signed with MSEDCL are for a supply of 1500 MW energy supply capacity and an additional 500 MW energy storage capacity.

MSEDCL will procure energy storage capacity from Torrent Power’s InSTS connected pumped hydro storage for 40 years. The company plans to supply the storage capacity from its upcoming InSTS connected pumped hydro storage plant being set up in Maharashtra. Under the Energy Storage Facility Agreement (ESFA), Torrent Power will provide MSEDCL with 2,000 MW of capacity for scheduled 8-hour daily discharges (maximum continuous 5 hours), with MSEDCL supplying the input energy for charging.

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Torrent Power has identified Pumped Storage Project (PSP) sites in several states, including Maharashtra, and plans to install 5-8 GW of PSP capacity with an investment of Rs 25,000 to Rs 35,000 crore.Shares of Torrent Power have given multibagger returns of 169% and nearly 107% on a year-to-date basis.

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