Tata Power Shares Rally After 200 MW Renewable Energy Deal with NTPC

Posted on April 15, 2025, by Niftynews

Tata Power shares are once again in the spotlight as the company’s renewable energy arm, Tata Power Renewable Energy Limited (TPREL), signed a major Power Purchase Agreement (PPA) with state-run NTPC. The deal involves the development of a 200 MW clean energy project, further expanding Tata Power’s growing footprint in the renewable space.

On April 11, Tata Power shares rose 1.74% to ₹364.50 on the Bombay Stock Exchange (BSE), boosting the company’s market capitalization to ₹1.16 lakh crore. The news has sparked optimism among investors, especially as the stock has shown strong long-term performance despite recent corrections.

Tata Power’s Renewable Portfolio Hits 10.9 GW

With the new NTPC agreement, Tata Power announced that its total renewable energy capacity now stands at 10.9 gigawatts (GW)—a significant milestone in India’s clean energy transition. According to the company:

• 5.5 GW is currently in operation
  • 4.5 GW from solar energy
  • 1 GW from wind energy
• 5.4 GW is under development
  • Equally split: 2.7 GW solar + 2.7 GW wind
  • Completion timeline: 6 to 24 months

This balanced mix of solar and wind projects will be rolled out in phases, with several projects already under construction.

Environmental and Energy Impact of the FDRE Project

The new 200 MW deal falls under Tata Power’s Firm and Dispatchable Renewable Energy (FDRE) project portfolio. Spread across multiple locations in India, the FDRE initiative is expected to generate around 1,300 million units (MUs) of electricity per year.

But the impact goes beyond generation capacity. According to TPREL, the project is expected to reduce carbon dioxide emissions by over 1 million tonnes annually. It will also feature a Battery Energy Storage System (BESS), making it a next-gen renewable solution that ensures reliable and continuous power supply, even during non-generation hours.

This project was secured through a competitive bidding process, further highlighting Tata Power’s capabilities in winning high-stake, clean-energy projects.

Tata Power Shares: Technical Indicators and Market Sentiment

Tata Power shares are currently showing mixed signals on the charts. As of April 11:

• Trading above the 5-day, 30-day, and 50-day moving averages
• Trading below the 10-day, 20-day, 100-day, 150-day, and 200-day averages

The Relative Strength Index (RSI) stands at 49.3, indicating that the stock is neither overbought nor oversold—a neutral zone that may precede a directional move depending on news flow and broader market trends.

Stock Performance: A Long-Term Wealth Creator

While recent price action has been somewhat bearish, Tata Power shares have proven to be a long-term multibagger:

• Down 21% in the last 6 months
• Down 15.6% over the past year
• Up 84% over the last two years
• Delivered a whopping 898% return over the last five years

These numbers demonstrate that while short-term corrections are part of market cycles, Tata Power has rewarded patient investors with substantial gains in the long run.

What’s Next for Tata Power Shares?

Given its aggressive push into renewables, Tata Power continues to align with India’s clean energy ambitions. Key factors to watch include:

• Execution of FDRE projects across wind, solar, and BESS technologies
• Stock movement near critical averages, which may attract technical traders
• Policy support for renewable energy and battery storage in India
• Further PPA announcements, especially with large institutional clients

With Tata Power’s goal of becoming a leading clean energy player in India, Tata Power shares could continue to be a compelling story for ESG-focused investors and long-term portfolio builders.

Conclusion

The recent 1.74% gain in Tata Power shares may seem modest, but the underlying developments are anything but. With a new 200 MW project in the pipeline and 10.9 GW of total renewable capacity, the company is making bold moves to stay ahead in India’s green energy race. Backed by strong fundamentals and long-term growth strategy, Tata Power shares deserve a close watch.