Mumbai, July 18, 2026: Tata Power Company Limited has secured a major milestone in India’s clean energy transition after receiving a Letter of Award (LoA) from the Solar Energy Corporation of India (SECI) for the development of a 324 MW / 2,592 MWh Pumped Storage Project (PSP). The long-term agreement is expected to provide the company with an annual fixed revenue of approximately ₹351.3 crore over a 40-year contract period.
According to the company’s regulatory filing, SECI will execute a Pumped Storage Purchase Agreement (PSPA) with Tata Power after completing Pumped Storage Sale Agreements (PSSAs) with the respective power distribution companies and buying entities. Following the agreement’s effective date, Tata Power is required to commission the project and begin supplying energy storage services within 36 months.
Under the contract, the company will receive a fixed annual charge of ₹1.084 crore per MW, resulting in a total annual fixed payment of ₹351.3 crore for the project’s 324 MW installed capacity. The agreement also specifies an annual cycle loss of 24.61%, reflecting the operational efficiency standards outlined in the award.
The Pumped Storage Project will play a vital role in strengthening India’s renewable energy ecosystem by storing excess electricity generated from solar and wind power during periods of low demand and releasing it back into the grid during peak consumption hours. This capability will improve grid stability, enhance energy reliability, and support the country’s growing integration of renewable energy sources.
Industry experts view the project as another significant step toward India’s energy transition, helping balance intermittent renewable generation while reducing dependence on conventional fossil-fuel-based power during peak demand. The long-term nature of the agreement also provides Tata Power with a stable and predictable revenue stream, reinforcing its position as one of India’s leading integrated power companies.
Key Highlights
- Tata Power received a Letter of Award (LoA) from SECI.
- Project Capacity: 324 MW / 2,592 MWh.
- Contract Duration: 40 years.
- Annual Fixed Revenue: Approximately ₹351.3 crore.
- Commissioning Timeline: Within 36 months from the agreement’s effective date.
- Annual Fixed Charge: ₹1.084 crore per MW.
- Annual Cycle Loss: 24.61%.
- The project will improve grid reliability, store surplus renewable energy, and support India’s clean energy goals.
