Long-Term SECI Award Secures Rs 351 Crore Annual Revenue for 324 MW Pumped Storage Capacity
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Tata Power has received a 40-year LOA from SECI for 324 MW pumped storage services with a fixed annual charge of Rs 351.3 crore, strengthening its long-term storage portfolio.
✨ Key Takeaways
The 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) under a 40-year arrangement.
The award provides for energy storage services from the 324 MW facility at a fixed annual charge of Rs 1.0841826 crore per MW per year. For the entire contracted capacity, the total annual fixed charge aggregates to Rs 351.3 crore. The agreement also specifies an annual cycle loss parameter of 24.61 per cent.
The engagement spans 40 years from the Scheduled Commencement of Supply Date, establishing a defined long-term revenue structure linked to the contracted storage capacity and agreed technical parameters. SECI, a Government of India enterprise, will enter into a Pumped Storage Purchase Agreement (PPA) with Tata Power after signing a Pumped Storage Sale Agreement with buying entities. Under this structure, SECI will act as the counterparty under the PPA.
Tata Power is required to commence supply of the contracted storage capacity within 36 months of the effective date of the PPA. The project relates to domestic operations and the LOA sets out key commercial terms including the fixed annual charge and cycle loss parameters.
The company clarified that the order has been awarded by a domestic entity and does not constitute a related party transaction. It also confirmed that the promoter, promoter group or group companies do not have any interest in SECI.
The 324 MW pumped storage project adds to Tata Power’s presence in long-duration energy storage infrastructure, supported by a contracted 40-year service term and a defined annual fixed revenue stream based on installed capacity. The structure provides for storage services rather than merchant power sales, with payments linked to availability under the agreed framework.
The disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated January 30, 2026.
About the Company: The Tata Power Company Limited is an integrated power utility operating across Thermal and Hydro, Renewables, Transmission and Distribution and related businesses. It has a total capacity of 16,716 MW, including 16,229 MW in India and 487 MW internationally, with operations spanning generation, transmission, distribution, power trading and renewable solutions. In FY2025-26, Transmission and Distribution accounted for the largest share of segment revenue, followed by Renewables and Thermal and Hydro, reflecting its diversified presence across infrastructure assets and customer-facing energy services.