Tata Power secures SECI LOA for 324 MW pumped storage project
Tata Power Company Limited has received a Letter of Award (LOA) from Solar Energy Corporation of India Limited (SECI) for providing pumped storage services from a 324 MW / 2,592 MWh pumped storage plant (PSP), according to a regulatory filing made by the company.
The award marks Tata Power’s entry into a long-term storage services arrangement under SECI’s procurement framework, with the project expected to supply storage capacity for a period of 40 years.
Agreement terms
Under the LOA, SECI will enter into a Pumped Storage Purchase Agreement (PPA) with Tata Power after executing corresponding sale agreements with the identified offtaking entities.
The storage capacity is scheduled to become operational within 36 months from the effective date of the PPA.
The agreement provides for annual fixed charges of Rs 1.0841826 crore per MW per year. Based on the contracted capacity of 324 MW, the project is expected to generate annual fixed charges of approximately Rs 351.3 crore over the tenure of the agreement.
The project has an annual cycle loss of 24.61%, as specified in the award conditions.
Project significance
The 324 MW facility will provide 2,592 MWh of energy storage capacity, equivalent to eight hours of storage at rated capacity. Pumped storage projects are increasingly being deployed to support renewable energy integration by shifting electricity from off-peak to peak demand periods and providing ancillary grid services.
The award is one of the emerging pumped storage service contracts being executed through SECI as utilities and developers expand long-duration storage capacity to support India’s renewable energy targets.
The featured photograph (Source: Tata Power) is for representation only.
