Tata Power Company Limited has received a letter of award (LoA) from the Solar Energy Corporation of India Limited (SECI) for providing energy storage services through a 324 MW/2,592 MWh pumped storage project.
The project will supply pumped storage services for 40 years from the scheduled commencement of supply date. SECI will sign a pumped storage purchase agreement (PSPA) with Tata Power after executing a pumped storage sale agreement with the buying entities. Tata Power is required to commence supply within 36 months of the effective date of the PSPA. The project has been awarded at a fixed annual charge of Rs 10.84 million per MW. This translates to a total annual fixed charge of Rs 3.51 billion for the 324 MW capacity. The project also provides for an annual cycle loss of 24.61 per cent.