Tata Power Company Ltd Secures 324 MW Bhivpuri LOA from SECI

Tata Power Company Ltd has secured a letter of award from SECI for supplying 324 MW from its 1,000 MW Bhivpuri pumped storage project in Raigad, Maharashtra. The award gives the project an identified offtake for nearly one-third of its planned capacity and adds to Tata Power's 2,800 MW pumped-storage development pipeline in the state.

What has Tata Power secured for the Bhivpuri project?

Tata Power has secured a letter of award, or LOA, from SECI for the supply of 324 MW of power from the Bhivpuri pumped storage project. Bhivpuri has a planned capacity of 1,000 MW and is located in Raigad district, Maharashtra. The awarded capacity represents 32.4% of the project's planned capacity.

The development is relevant because pumped storage projects are designed to store electricity and supply it when demand is higher. Such assets can support the use of variable renewable generation by shifting available energy across different periods. The material provided does not disclose the tariff, contract duration, commissioning date under the LOA, or other commercial terms.

Bhivpuri is one of two major pumped hydro storage projects Tata Power is advancing in Maharashtra's Western Ghats region. The other is the proposed 1,800 MW Shirwata project in Pune district. Together, the two projects form a 2,800 MW pipeline.

The LOA is a project-specific milestone for Bhivpuri rather than a disclosure of the full 1,000 MW project's offtake arrangements. It establishes an identified supply commitment for 324 MW while the remaining capacity is not detailed in the supplied information.

How does Bhivpuri fit into Tata Power's Maharashtra plans?

Bhivpuri is part of Tata Power's agreement with the Government of Maharashtra to develop 2,800 MW of pumped hydro storage capacity. The memorandum of understanding covers the 1,000 MW Bhivpuri project in Raigad and the 1,800 MW Shirwata project in Pune.

The company and the Maharashtra government previously indicated estimated investment of about Rs 13,000 crore for the two projects together. Separately, Tata Power's chief executive and managing director Praveer Sinha said the Shirwata project would involve investment of Rs 11,000 crore, financed through a 70:30 debt-equity structure. The supplied information does not provide a separate investment figure or financing structure for Bhivpuri.

Tata Power Renewable Energy is identified as the developer of these projects. The company has also reported that civil, electro-mechanical, hydro-mechanical and GIS packages have been awarded for its pumped-storage programme and that work is progressing. Its project update lists Bhivpuri at 100% under construction, while Shirwata is marked at 100% in the same project pipeline presentation.

For Shirwata, preliminary activities have been reported as being in progress. A public hearing for the proposed 1,800 MW off-stream open-loop pumped storage hydro project at Khandshi in Maval, Pune, was listed for October 29, 2024 by the Maharashtra Pollution Control Board.

Why are pumped storage projects important for Tata Power?

Pumped storage projects are important because they add dispatchable storage capability to an electricity system with growing renewable generation. They generally use electricity to move water to an upper reservoir during periods of available supply and release it through turbines when electricity is needed.

Tata Power has presented storage as part of its wider clean-energy expansion. Its disclosed pipeline includes 434 MW of wind projects, 612 MW of solar capacity, 1,725 MW of hydro projects, 2,447 MW of complex or firm and dispatchable renewable energy projects, 2,800 MW of pumped storage capacity and 1,612 MW of hybrid projects.

The company has stated that it has 7,856 MW of clean and green operational capacity. The proposed Maharashtra storage assets therefore sit alongside an existing renewable and hydro portfolio rather than operating as stand-alone developments.

Bhivpuri also has historical relevance within Tata Power's hydro footprint. Tata Power's hydro operations in the Western Ghats date back more than a century, and the company is now pursuing new storage infrastructure in the same broader region. This provides context for the company's strategy of combining legacy hydro assets with newer energy-storage projects.

What does the 324 MW award mean for investors and power users?

The 324 MW award provides a disclosed offtake link for part of the Bhivpuri project's eventual output. For investors, it is a measurable project development update because it relates to a defined share of the planned 1,000 MW capacity. However, the information provided does not state the associated revenue, tariff, capital cost, commissioning timetable, or financial impact on Tata Power.

For the power system, the project is intended to provide stored electricity that can be supplied during higher-demand periods. Previous reporting on the broader Maharashtra projects said stored power could support clean-energy supply to Mumbai during peak demand, although the LOA announcement itself only identifies SECI and the 324 MW Bhivpuri capacity.

The wider industry context is the need for storage infrastructure as solar, wind and other renewable capacity increase. Pumped storage can complement renewable projects by making stored power available at different times from when electricity was generated. The supplied material does not quantify the expected energy delivery, storage duration, or grid benefits from Bhivpuri.

Tata Power has indicated that Bhivpuri and Shirwata are expected to become operational by 2028 and 2029, respectively. These are stated project expectations, and the provided material does not give a revised timeline following the SECI award.

Conclusion

The SECI letter of award for 324 MW is a concrete offtake milestone for Tata Power's 1,000 MW Bhivpuri pumped storage project. It links 32.4% of the project's planned capacity to an identified buyer and reinforces the company's plan to build 2,800 MW of pumped hydro storage capacity across Bhivpuri and Shirwata in Maharashtra.

The next disclosures to watch are the commercial terms of the 324 MW award, progress on Bhivpuri's construction and the timetable for commissioning. Tata Power has indicated operational expectations of 2028 for Bhivpuri and 2029 for Shirwata, while the full offtake plan for the balance of Bhivpuri's capacity remains undisclosed.