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Tata Power Secures LOA from SECI for 324 MW/2,592 MWh Pumped Storage Project

Tata Power has secured a Letter of Award from SECI for a 324 MW/2,592 MWh pumped storage project to provide energy storage services for 40 years at an annual fixed charge of approximately INR 351.3 crore.

July 20, 2026. By Mrinmoy Dey

Tata Power has received a letter of award (LOA) from the Solar Energy Corporation of India (SECI) for providing energy storage services from a 324 MW/2,592 MWh pumped storage plant (PSP). The project will supply storage services for a period of 40 years from the scheduled commencement of supply date.

The company disclosed in a regulatory filing that the LOA has been awarded under SECI's pumped storage procurement programme and covers the provision of energy storage services through a PSP with a storage capacity of 2,592 MWh, equivalent to eight hours of storage at the rated power output of 324 MW.

According to the filing, SECI will enter into a Pumped Storage Purchase Agreement (PSPA) with Tata Power after signing Pumped Storage Sale Agreements with the respective buying entities. The agreement envisages the supply of storage services from the PSP for a tenure of 40 years at an agreed fixed annual charge and cycle loss.

Under the terms of the award, Tata Power is required to commence supply of the contracted storage capacity within 36 months from the effective date of the PSPA. The project is expected to play a crucial role in supporting grid stability, integrating higher shares of renewable energy, and meeting peak power demand through dispatchable clean energy storage.

The contract carries an annual fixed charge of INR 1.084 crore/MW/year, translating into a total annual fixed charge of approximately INR 351.3 crore for the entire 324 MW capacity. The project has been awarded with an annual cycle loss of 24.61 percent.

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Energy Storage

Tata Power Company

Solar Energy Corporation of India

Pumped Storage Project

Pumped Storage Purchase Agreement