Reliance Group-Backed Power Stock Under Rs 50; Company Wins 350 MW Solar Power &175 Mw/700 MWH Battery Energy Storage System Project in SJVN Auction
The stock is up by 85 per cent from its 52-week low of Rs 23.26 per share.
Reliance Power's subsidiary, Reliance NU Energies Private Limited, has achieved a significant triumph in a recent tender issued by SJVN, a prominent Navratna Public Sector Enterprise. The company has secured the largest allocation in SJVN's ISTS-connected Solar + Battery Energy Storage System (BESS) tender, winning a project that includes 350 MW of solar power generation capacity coupled with a 175 MW/700 MWh Battery Energy Storage System. This substantial win positions Reliance Power as India's largest player in the Solar + BESS segment, boasting a total clean energy pipeline of 2.5 GWp of solar capacity and over 2.5 GWhr of battery storage capacity.
The competitive bidding process saw Reliance NU Energies successfully secure a tariff of INR 3.33 per kWh, which will remain fixed for 25 years. This competitively priced offering underscores the project's strong position within India's evolving energy transition landscape. The Letter of Award from SJVN is currently anticipated. This allocation marks a crucial step forward in Reliance Power's strategic shift towards renewable energy sources. The project is part of a larger 1,200 MW solar + 600 MW / 2,400 MWh BESS ISTS-connected tender by SJVN, which witnessed significant interest with 19 participating entities and 18 qualifying for the e-reverse auction, ultimately being oversubscribed by more than four times.
The awarded project is designed to provide assured peak power delivery to state distribution utilities (Discoms) through a minimum four-hour daily discharge window. It will be developed under a build-own-operate (BOO) framework, adhering to the standard bidding guidelines set forth by the Ministry of Power. This successful bid not only highlights Reliance Power's ongoing progress and commitment to becoming a leader in India's renewable energy sector but also signifies a substantial milestone in the company's strategic vision for a transition towards cleaner energy and a key role in shaping the nation's sustainable energy future.
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Furthermore, Reliance Power's wholly-owned subsidiary, Reliance NU Suntech Private Limited, recently finalised a definitive 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) for the development of Asia's largest integrated Solar and Battery Energy Storage System (BESS) project. This transformative project will feature a 930 MW solar power capacity paired with a 465 MW/1860 MWh BESS, involving an investment of up to Rs 10,000 crore. The project will operate at a competitive fixed tariff of Rs 3.53 per kWh for the entire 25-year PPA term, ensuring long-term revenue visibility for the company.
About Reliance Power Ltd
Reliance Power Limited, part of the Reliance Group, is one of India's leading private-sector power generation companies. The company has an operating portfolio of 5,300 megawatts, which includes 3960 megawatts Sasan Power Limited (the world's largest integrated coal-based power plant). For the past seven years, Sasan Power has consistently ranked as the best operating power plant in India.
On Monday, shares of Reliance Power Ltd surged 11.25 per cent to Rs 43 per share from its previous closing of Rs 38.65 per share. The company has a market cap of Rs 17,000 crore. The stock is up by 85 per cent from its 52-week low of Rs 23.26 per share.
Disclaimer: The article is for informational purposes only and not investment advice.