Tata Power has secured a significant milestone in India’s clean energy transition after receiving a Letter of Award (LoA) from the Solar Energy Corporation of India (SECI) for a 324 MW / 2,592 MWh Pumped Storage Project (PSP). The award enables Tata Power to provide long-duration energy storage services for 40 years from the scheduled commencement of supply, reinforcing the growing importance of pumped hydro storage in supporting India’s expanding renewable energy capacity.
According to the regulatory filing, SECI will execute a Pumped Storage Purchase Agreement (PPA) with Tata Power after finalizing Pumped Storage Sale Agreements (PSAs) with the buying entities.
324 MW Pumped Storage Capacity to Support Grid Stability
The awarded project involves supplying energy storage services from a 324 MW pumped storage plant with an energy storage capacity of 2,592 MWh. Under the terms of the Letter of Award, Tata Power will provide storage services for four decades, while the project is expected to commence supply within 36 months from the effective date of the PPA.
Pumped storage projects store electricity during periods of lower demand and release it when demand rises, helping improve grid reliability and support renewable energy integration.
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Commercial Terms of the Award
The project carries an annual fixed charge of ₹1.0841826 crore per MW, translating into an estimated ₹351.3 crore annually for the entire 324 MW contracted capacity. The project also specifies an annual cycle loss of 24.61%, as outlined in the Letter of Award.
SECI to Execute PPA After Buyer Agreements
The award currently takes the form of a Letter of Award. SECI will execute the Pumped Storage Purchase Agreement after signing Pumped Storage Sale Agreements with the purchasing entities. Once operational, Tata Power will be required to commence storage supply within 36 months of the effective PPA date.
Growing Importance of Pumped Hydro Storage
The award highlights the increasing role of pumped hydro energy storage in India’s renewable energy ecosystem. As solar and wind generation continue to expand, long-duration storage solutions are becoming essential for balancing electricity supply and demand, improving grid flexibility, and supporting round-the-clock clean power availability. With this project, Tata Power further strengthens its presence in utility-scale energy storage infrastructure.
