On Friday, the stock price of Reliance Power surged by over 3%, buoyed by a significant development from its subsidiary, Reliance NU Suntech. The company has formalized a 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI), paving the way for an ambitious solar energy initiative. As a result, shares of Reliance Power climbed to ₹41.54 on the Bombay Stock Exchange (BSE), marking a notable increase of 3.90%.
Major Solar Energy Project Announcement
Reliance NU Suntech is gearing up to launch Asia’s largest integrated solar and battery energy storage system (BESS), expected to commence within the next 24 months. This monumental project will demand a substantial investment of up to ₹10,000 crore.
- The PPA with SECI entails:
- Delivery of 930 MW of solar power.
- Integration with a 465 MW/1,860 MWh Battery Energy Storage System.
- A competitive tariff set at ₹3.53 per kWh.
To meet the ambitious goal of 930 MW, Reliance Power plans to install over 1,700 MWp of solar generation capacity, according to their regulatory announcement.
Quick and Efficient Bidding Process
Led by Anil Ambani, Reliance Power has also submitted a Performance Bank Guarantee (PBG) of ₹378 crore to SECI. Remarkably, the entire bidding process, from the reverse auction to the signing of the PPA, was wrapped up in less than five months.
Stock Performance Overview
Despite recent gains, Reliance Power has faced some volatility. Over the past month, the stock has dipped by 4% and is down 4.7% year-to-date. However, it has achieved a 50% rise over the past year and has recorded an impressive 185% return over the last three years.
- 52-week high: ₹54.25 (October 4, 2024)
- 52-week low: ₹23.26 (June 5, 2024)
As of 10:45 AM, shares of Reliance Power were trading at ₹41.21, reflecting a 3.08% increase on the BSE.
The recent developments signal a robust commitment from Reliance Power toward sustainable energy solutions, positioning them as a key player in the renewable energy sector in India.
