December 31, 2024
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Stock Market

Green Energy stock jumps after receiving LoA from NPCL for wind-solar hybrid projects

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Stock Market

Green Energy stock jumps after receiving LoA from NPCL for wind-solar hybrid projects

One of the green energy stocks engaged in the business of generation and distribution of electricity has jumped by 1.78 percent after receiving a contract from Noida Power Company Limited (NPCL) to supply 300 MW of wind-solar hybrid power.

Stock price movement

In Tuesday’s trading session, CESC Limited’s share jumped to an intraday high of 1.78 percent from the previous close of Rs. 185.10. The stock opened at Rs. 187.15 and is currently trading at Rs. 183.60 with a high of Rs. 188.40 and a low of Rs. 183.40. The market capitalization now stands at approximately Rs. 24,337.47 crore.

What Happened

Purvah Green Power Private Limited, a subsidiary of CESC Limited, has been awarded a contract by Noida Power Company Limited (NPCL) to supply 300 MW of wind-solar hybrid power.

The long-term agreement was valid for 25 years and follows a tariff-based competitive bidding process under the Ministry of Power’s guidelines. This project is part of NPCL’s renewable energy initiative and is considered a related party transaction between two subsidiaries of CESC Limited, executed on arm’s length terms.

Manufacturing Capacity

CESC Limited has a strong power generation capacity of 2,140 MW across five thermal power plants. The Budge Budge facility leads with 750 MW, while Dhariwal Infrastructure and Haldia Energy each contribute 600 MW.

Southern Generating Station and Crescent Power add 135 MW and 40 MW, respectively. CESC mainly supplies power to Kolkata and NPCL regions to expand its merchant market presence. The 300 MW unit at Chandrapur will start operations in March 2025, supported by solid fuel supply agreements.

CESC Limited is also expanding its renewable capacity to 3,200 MW by March 2029, with plans to develop 1,700 MW of wind and 1,500 MW of solar power.

Projects in Renewable Business

CESC Limited is actively growing its wind energy portfolio through several strategic agreements. These include a partnership with Inox Wind for 1.5 GW of turbines, a collaboration with Suzlon Energy for EPC services, and a joint venture with Ecoren Energy India for a 686.85 MW project. The company is also set to acquire Bhojraj Renewables for a 300 MW wind project.

In the solar sector, CESC is equally ambitious, with several 300 MW projects in progress. The company has acquired full stakes in Bhadia 3 SKP Green Ventures and Deshraj Solar Energy and secured a Power Purchase Agreement (PPA) for a 300 MW solar PV project. Additionally, an EPC contract for another 300 MW solar project with Purvah Green is nearing completion.