Tata Power shares hit intraday high as TPREL secures INR 49,000 crore renewable energy deal

Tata Power shares surged by 3 per cent in early trading on Monday, hitting an intraday high of INR 361.85 on the BSE. The rise followed an announcement that its subsidiary, Tata Power Renewable Energy Ltd (TPREL), had signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to develop renewable energy projects worth INR 49,000 crore ($ 5.6 billion).

Image Source: TPREL page on Twitter

Under the agreement, TPREL and the state government will collaborate to explore opportunities for establishing up to 7,000 MW of renewable energy capacity, including solar, wind, and hybrid projects, with or without storage solutions.

Last month, Tata Power signed a Memorandum of Understanding (MoU) with the Assam government during Advantage Assam 2.0 to develop up to 5,000 MW of renewable energy projects, including solar, wind, hydro, and energy storage. The initiative involves an estimated investment of INR 30,000 crore over the next five years.

"This partnership aligns with the State's vision to enhance its renewable energy portfolio and accelerate the transition towards a sustainable and green energy future," the company said. The proposed capacities will be established under Andhra Pradesh's Integrated Clean Energy (ICE) Policy, a groundbreaking framework designed to position the state as a leader in renewable energy, targeting the development of over 160 GW with an investment potential of ₹10 lakh crore.

As part of the collaboration, the Assam government will support the identification and allocation of approximately 20,000 acres of encumbrance-free government land on a lease basis and assist in acquiring private land suitable for these projects.

Additionally, the state will aid in infrastructure development to ensure seamless transmission connectivity and encourage the creation of Renewable Energy Parks through state agencies. The initiative will also involve identifying land for Group Captive sites, enabling industries and tea gardens to access clean energy under Assam's land allotment and industrial policies.