Shares of Anil Ambani’s company Reliance Power have increased by more than 2600% in the last 4 and a half years. The company’s shares reached Rs 31.32 with a jump of 5% on Monday.
Anil Ambani’s Reliance Power has secured a significant 500 MW battery storage contract, marking its entry into the renewable energy and storage sector. The company won this contract through an e-reverse auction (eRA) organized by the Solar Energy Corporation of India (SECI) on September 11, 2024. This auction was part of SECI’s efforts to boost energy storage capacity nationwide. Reliance Power emerged successful in the competitive bidding by submitting a tariff bid of Rs 3.81999 lakh per MW per month.
Reliance Power Share Jumps
Following the major contract win, shares of the company jumped 5 percent, reaching their upper circuit at Rs 31.32 on the BSE, before closing at Rs 30.73. The company’s market capitalization rose to Rs 12,344 crore on Monday.
The contract involves the installation of a total of 1,000 MW of standalone BESS units, awarded on a build-own-operate (BOO) model for “On Demand” usage under a tariff-based competitive bidding process.
Reliance Power has secured 500 MW MWh of this capacity, marking a significant entry into the renewable energy and storage sector, a company spokesperson said.
The competitive bidding saw Reliance Power submitting a tariff bid of Rs 3.81999 lakh/MW/month.
This new tariff benchmark represents one of the lowest rates for BESS tenders at the 400 KV level in India to date.
How Will The Project Operate?
The delivery point for the project shall be 400 kV Fatehgarh(ATL) PS, Rajasthan. The scheduled commissioning date for the full capacity will be 24 months from the effective date of the BESPA (Battery Energy Storage Purchase Agreement).
The auction process witnessed participation from several key industry players.
Reliance Power’s successful bid highlights the company’s strategic shift towards renewable energy and storage solutions, promising increased competition and efficiency in the sector. The introduction of such competitive tariffs is expected to set new standards and drive further advancements in India’s energy storage capabilities.
(With inputs from PTI)
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