Torrent Power, a prominent integrated power utility company, witnessed a significant uptick in its share price during Monday’s trading session following its successful bid for a wind-solar hybrid project. As per a recent exchange filing on Thursday (March 28), the company announced that it had received a letter of award from its ‘Distribution Unit’ for constructing a 150MW wind-solar hybrid project, involving an investment of ₹1,825 crore.
The project is slated to be operational within 24 months from the signing of the Power Purchase Agreement (PPA), with a contractual supply of power spanning 25 years from its commissioning. Notably, the project entails maintaining an annual capacity utilization factor (CUF) of no less than 50% throughout the PPA term, with a prescribed ratio of 2:1 for wind and solar capacities.
In order to fulfill the 50% CUF requirement, Torrent Power plans to install 245 MW of wind and solar capacity projects, exceeding the contracted capacity of 150 MW, as detailed in the regulatory filing.
This marks the second consecutive order win for its ‘Distribution Unit’ in under a month, following the previous acquisition on March 16, where the company secured a Letter of Award for a 300 MW (RE Power) grid-connected wind-solar hybrid project valued at ₹3,650 crore.
Furthermore, in February, the company clinched a letter of award from Railway Energy Management Company Limited (REMCL) for establishing grid-connected renewable power projects, involving approximately 325 MW of renewable capacity for the supply of 100 MW of RE-RTC power, valued at ₹2,700 crore.
With these significant order wins, Torrent Power’s shares have surged by 54% year-to-date, reflecting investors’ positive sentiment towards the company’s strategic focus on renewables. This aligns with its sustainability commitments and the government’s target of achieving 500 GW of non-fossil fuel capacity by 2030.
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