Tata Power has strengthened its renewable energy portfolio after securing a significant contract from the Solar Energy Corporation of India (SECI) for a 324 MW/2,592 MWh Pumped Storage Project (PSP). The company has received a Letter of Award (LoA) for the project, which is expected to generate annual fixed charges of ₹351.3 crore over a 40-year contract period, enhancing its long-term revenue visibility and reinforcing its position in India’s rapidly expanding clean energy sector.
Under the terms of the award, Tata Power will provide energy storage services through the pumped storage facility at annual fixed charges of ₹1.084 crore per MW. The company is required to commission the project and begin supplying storage services within 36 months from the effective date of the Power Purchase Agreement (PPA).
The PPA will be executed by SECI after the signing of a Pumped Storage Sale Agreement (PSSA) with the respective power distribution companies or buying entities. Once operational, the agreement will remain valid for 40 years, ensuring stable and predictable revenue for Tata Power over the long term.
The project comes at a time when India is rapidly expanding its renewable energy capacity while investing heavily in grid-scale energy storage infrastructure to improve the reliability of electricity supply. As the share of solar and wind power continues to rise, energy storage systems have become increasingly important for balancing intermittent renewable generation with fluctuating electricity demand.
Pumped Storage Projects (PSPs) are considered one of the most efficient forms of long-duration energy storage. During periods of surplus electricity generation, water is pumped to an upper reservoir. When electricity demand increases, the stored water is released to generate power, enabling utilities to balance the grid, improve system flexibility and enhance energy security.
The latest contract represents another strategic milestone for Tata Power as it continues to diversify its clean energy portfolio. The company has been actively investing across solar power, wind energy, hydroelectric projects, battery energy storage systems, transmission infrastructure and renewable energy solutions, in line with its long-term sustainability strategy and India’s energy transition goals.
The project also aligns with the Government of India’s objective of significantly expanding non-fossil fuel power generation capacity while strengthening the national electricity grid through reliable dispatchable renewable energy solutions. Pumped hydro storage is expected to play a vital role in supporting India’s ambition to achieve higher renewable energy penetration without compromising grid stability.
Industry experts believe that long-term infrastructure contracts awarded by government-backed agencies such as SECI provide developers with predictable cash flows while reducing revenue uncertainty. The 40-year contract structure is expected to strengthen Tata Power’s earnings visibility and support future investments in renewable and energy storage infrastructure.
The award further reinforces Tata Power’s position as one of India’s leading integrated power companies, with a growing focus on clean energy generation and sustainable infrastructure. As demand for renewable energy storage solutions continues to increase, the company is well-positioned to capitalise on emerging opportunities created by India’s ongoing power sector transformation.
With the addition of the 324 MW pumped storage project, Tata Power continues to expand its renewable energy order book while contributing to India’s broader decarbonisation agenda and efforts to build a resilient, low-carbon electricity system capable of supporting the country’s future energy needs.
Disclaimer: This report has been editorially prepared using publicly available information and official company disclosures. Readers are advised to refer to Tata Power and SECI’s official announcements for complete project details.
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