The share price of Tata Power saw a positive surge in the wake of a significant announcement. The company’s subsidiary, Tata Power Renewable Energy, recently entered into a Power Purchase Agreement (PPA) for a 9MWp on-campus solar plant with Tata Motors’ Pantnagar facility located in Uttarakhand.
At the beginning of the trading session, Tata Power’s share price opened at ₹241.50, marking an increase of ₹2.15 or 0.90% compared to the previous day’s closing of ₹239.35. However, as the day progressed, the initial gains experienced a minor correction. By 11 am, Tata Power’s share price had settled at ₹240.25, reflecting an increase of ₹0.90 or 0.38%.
Simultaneously, Tata Motors’ share price at 11 am was observed at ₹623.15, indicating a growth of ₹2.50 or 0.40%.
According to the company, “The solar installation contributes significantly to Tata Motors’ sustainability goals, with an estimated reduction of 25 tonnes of CO2/kWp in Uttarakhand. The project is slated for completion within 6 months from the PPA execution date and will encompass both rooftop and ground-mounted units.”
Distinguished as the largest on-campus solar facility in the state, this solar plant constitutes a significant expansion of Tata Motors’ Pantnagar plant. In a prior collaborative effort, Tata Power Renewable Energy and Tata Motors had established a 7 MWp solar project at the Pantnagar manufacturing facility. With this recent expansion, the combined solar capacity of Tata Motors’ Pantnagar plant will reach 16 MWp. The solar installations are projected to generate 224 lakh units annually, catering to nearly 60% of their yearly energy needs, as highlighted in a regulatory filing.
Ashish Khanna, CEO of Tata Power Renewable Energy, remarked, “Through this partnership with Tata Motors, Tata Power Renewables is solidifying India’s commitment to green energy. The 9MWp solar power installation underscores our dedication to promoting widespread adoption of eco-friendly clean energy solutions across various industries.”
Tata Power’s shares have showcased an upward trajectory, recording a 10.8% surge in the past month, a 16.9% increase over the past 3 months, and a 13.79% growth in the year 2023 up to this point.