Tata Power Ltd’s shares have garnered attention on Tuesday following an agreement made by its renewable energy subsidiary with Tata Motors for a solar power project.
In a filing with the stock exchange on Monday, the company announced that its subsidiary, Tata Power Renewable Energy Ltd (TPREL), has entered into a Power Purchase Agreement (PPA) with Tata Motors Ltd for a 9MWp on-campus solar plant at the Pantnagar plant in Uttarakhand.
This solar facility will be the largest of its kind at a single location in Uttarakhand and is expected to reduce carbon emissions by approximately 25 tonnes of CO2 per kWp in the northern state. The project is scheduled to be commissioned within six months from the date of the power purchase agreement.
With this new project, Tata Motors’ Pantnagar plant will have a combined solar capacity of 16 MWp. Tata Power’s operational capacity is an impressive 4,132 MW, comprising 3,139 MW of solar capacity and 993 MW from other sources.
The management of TPREL, stated, “The 9MWp solar power installation reflects our commitment to promoting the widespread adoption of eco-friendly clean energy solutions across industries.
This collaboration between the two companies is not their first, as TPREL and Tata Motors previously implemented a 7 MWp solar project at the Pantnagar manufacturing facility under an earlier partnership.
On Tuesday, Tata Power’s shares closed at Rs. 243.70, marking a 1.82% increase compared to the previous day’s closing price.