Reliance Power hits 5% upper circuit on large solar project win; details

Shares of Reliance Power reached their 5 per cent at Rs 46.24 per share in the early morning trade of Thursday after the company disclosed that its subsidiary has bagged a large solar energy project.

 

The company’s arm Reliance NU Suntech won a 930 MW solar energy contract with battery energy storage system project (BESS) from Solar Energy Corporation of India (SECI) in an e-reverse auction held on 9th December 2024.  

 

“As per the terms of the tender, Reliance NU Suntech will also have to install a minimum storage capacity of 465 MW/1,860 MWh charged by solar power. The Letter of Award (LoA) is awaited from SECI. Reliance NU Suntech’s successful bid for SECI’s Tranche XVII auction was won at a tariff of ₹3.53 ($0.0416)/kWh,” the company said in a statement on Wednesday. 

 

The company, among India’s leading power generators, secured the largest individual allocation out of the five companies vying for a total quoted capacity of 2,000 MW of Inter-State Transmission System (ISTS) connected solar power projects with 1,000 MW/4,000 MWh energy storage systems. 

 

Reliance Power said that the project will guarantee a peak power supply of four hours daily. SECI will enter into a power purchase agreement (PPA) with Reliance NU Suntech for a period of 25 years and the solar power procured will be sold to multiple discoms in India. 

 

The subsidiary plans to develop the project on a build-own-operate basis and will have to connect to the interstate transmission system in compliance with Central Electricity Regulatory Commission regulations for interconnection with the ISTS or InSTS. 

 

Meanwhile, on the equities side, Reliance Power’s stock has outperformed the market in the last six months as it has risen 45 per cent, while gaining 98 per cent in the last one year. In comparison BSE Sensex has risen 6 per cent year to date and 17 per cent in a year. 

 

The company has a total market capitalisation of Rs 18,474.05crore. Its shares are trading at a price to earnings multiple of 264 times and at an earning per share of Rs 0.17. 

 

At 10:09 AM; the shares of the company were trading 4.34 per cent higher at Rs 45.95 a piece. By comparison, the BSE Sensex was down 0.01 per cent at 81,518.65 level.  

Reliance Power, part of the Reliance Group, is one of India's leading private sector power generation companies