TATA-Group Multibagger Power Company to Develop 30 MW/120 MWh Battery Storage Project for KSEBL in Kerala

Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited, has been selected by NHPC Limited to set up a Battery Energy Storage System (BESS) with a capacity of 30MW/120MWhr. This significant project, valued at approximately ₹110 crore (approximately $13 million), aims to optimize excess energy for the Kerala State Electricity Board Limited (KSEBL) by storing it in the new asset.

The BESS asset will be established at the Area code Substation of KSEBL, located in Mulleria, District Kasaragod, Kerala. NHPC Limited, nominated as a Battery Energy Storage System (BESS) Implementing Agency (BIA) by the Ministry of Power, selected TPREL through an international bidding process.

Under the terms of the long-term lease contract, TPREL will develop and make the BESS asset available for charging and discharging as per KSEBL's scheduling for a period of 12 years. NHPC will act as a facilitator between KSEBL, the off-taker, and TPREL, the developer. The discovered capacity charge through the tendering process includes a Variable Gap Funding (VGF) component available under the Central VGF Scheme for BESS, indicating this is a domestic entity contract. The project execution period is set for 15 months from the date of signing the Power Purchase Agreement (PPA), with an operation period of 12 years subsequent to commissioning. The contract does not involve any related party transactions, and neither the promoter, promoter group, nor group companies have any interest in NHPC Limited.

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About the Company

Tata Power Company Ltd, a leading integrated power company under India's largest conglomerate Tata Group, boasts a diverse portfolio of 14,707 MW spanning the entire power spectrum. This includes the generation of both renewable and conventional energy, along with transmission, distribution, trading, storage solutions and even solar cell and module manufacturing. As champions for clean energy, they've committed to achieving carbon neutrality before 2045. Beyond generation, Tata Power has established India's most comprehensive clean energy platform, offering rooftop solar solutions, microgrids, storage solutions, EV charging stations and home automation systems.

According to Quarterly Results, the net sales increased by 7 per cent to Rs 17,238 crore and net profit increased by 25 per cent to Rs 1,306 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 5 per cent to Rs 64,502 crore and net profit increased by 12 per cent to Rs 4,775 crore in FY25 compared to FY25.

The company has a market cap of over Rs 1.20 lakh crore and has delivered good profit growth of 50 per cent CAGR over the last 5 years. The stock gave multibagger returns of 700 per cent in 5 years with PE of 34x, an ROE of 11 per cent and an ROCE of 11 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.

Disclaimer: The article is for informational purposes only and not investment advice.