Reliance Power share price jumps over 3% after subsidiary signs 25-year power purchase agreement with SECI

Reliance Power share price jumped over 3% on Friday after the company’s subsidiary, Reliance NU Suntech, signed a 25-year long-term Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI). Reliance Power shares gained as much as 3,90% to ₹41.54 apiece on the BSE.

Reliance Power said its subsidiary Reliance NU Suntech is set to develop and commission Asia’s largest single-location integrated solar and battery energy storage system (BESS) project within the next 24 months. The project entails a capital investment of up to ₹10,000 crore.

Reliance NU Suntech’s signed Power Purchase Agreement with SECI comprises supply of 930 MW of solar power integrated with 465 MW/1,860 MWh Battery Energy Storage System (BESS), at a competitive fixed tariff of ₹3.53 per kWh. To achieve the contracted capacity of 930 MW, the project will deploy more than 1,700 MWp of installed solar generation capacity, Reliance Power said in a regulatory filing.

Anil Ambani-led Reliance Power has submitted a Performance Bank Guarantee (PBG) amounting to ₹378 crore to the Solar Energy Corporation of India (SECI). The entire bidding process – from the reverse auction to the issuance of the Letter of Award (LoA), and culminating in the signing of the Power Purchase Agreement (PPA) – was completed in less than 5 months, it added.

Reliance Power Share Price Performance

Reliance Power share price has fallen 4% in one month and has dropped 4.7% on a year-to-date (YTD) basis. However, Reliance Power shares have rallied 50% in one year and has delivered multibagger returns of 185% in three years.

The Anil Ambani group stock, Reliance Power share price hit a 52-week high of ₹54.25 apiece on 04 October 2024, and touched a 52-week low of ₹23.26 apiece on 05 June 2024.

At 10:45 AM, Reliance Power shares were trading 3.08% higher at ₹41.21 apiece on the BSE.