Source: The Economics Times
During early trading on Friday, Torrent Power’s share price increased more than 3%, despite a major downturn in the Indian stock market, due to its announcement of wind power project order, boosting synergies in its renewable energy initiatives.
Order From SECI
On Thursday evening, Torrent Power informed the stock exchanges that its wholly owned subsidiary, Torrent Green Energy Private Limited, had received a Letter of Award from the Solar Energy Corporation of India (SECI). The award is for the development of a 300 megawatt (MW) wind power project under Wind Tranche-XVIII.
The wind project will be connected through the Inter-State Transmission System (ISTS) to supply power across states. This order was secured through a competitive bidding process with a tariff of ₹3.97 per unit.
According to Torrent Power, the project is expected to take 24 months to complete from the date the Power Purchase Agreement (PPA) is signed. The company plans on investing approximately ₹2,650 crores into this project.
Emphasis on Green Energy
This new development bolsters Torrent Power’s momentum towards relocating to renewable energy in 2021. The company indicated that with this project win, its current renewable energy capacity under development has grown to 3.3 gigawatts (GWp).
Torrent Power has made a significant effort to substantially rely on clean energy as part of its future growth plans. The company is working on various solar and wind energy projects to lessen its carbon footprint and support the government goals for renewable energy.
Market Reaction
Despite a decline of over 1,300 points in the Sensex due to global uncertainty and rising unease among investors, shares of Torrent Power had a positive movement. There were losses across most sectors including banking, IT and metals. However, the stock price of Torrent Power increased more than 3% during early trading.
Analysts say that winning the order at this time presented a perfect opportunity for Torrent Power to be able to outperform most stocks in the stock market
The stock has closed above the short-term moving averages as stated in market analysis, which is another positive, showing potential for additional upside if strong momentum continues.
Torrent Power shares rose over 3% on Friday, in defiance of a market downturn after winning a 300 MW wind power project from SECI. The ₹2,650 crore project not only strengthens its renewable portfolio, but also shows the increasing vigilance on clean energy.
