Tata Power Wins SECI Letter of Award for 324 MW/2,592 MWh Pumped Storage Project
Tata Power Company Limited has received a formal Letter of Award (LoA) from the Solar Energy Corporation of India (SECI) to establish and operate a 324 MW/2,592 MWh Pumped Storage Plant (PSP). The contract covers the provision of long-term energy storage capacity services.
Under the terms of the award, SECI will pay Tata Power a fixed annual charge of ₹1.0841826 crore per MW, translating to a total fixed revenue of approximately ₹351.3 crore per year for the contracted 324 MW capacity. The agreement guarantees storage service delivery for a tenure of 40 years from the Scheduled Commencement of Supply Date, and factors in an annual cycle loss threshold of 24.61%.
Following the LoA, SECI is expected to sign a formal Pumped Storage Purchase Agreement (PPA) with Tata Power, once SECI concludes corresponding Pumped Storage Sale Agreements with downstream buying entities such as distribution companies or commercial utilities. Tata Power is required to commence supply of the contracted storage capacity within 36 months from the effective date of the PPA.
The project adds to Tata Power's expanding clean energy infrastructure pipeline, which already includes more than 7 GW of ground-mount utility-scale solar capacity and over 750 MW of rooftop and distributed generation projects across India. Pumped hydro storage is increasingly being deployed in India to balance grid demand and support renewable energy integration, particularly for evening peak-hour supply as solar generation tapers off.