Shares of Reliance Power and Reliance Infrastructure have been on a remarkable upward trajectory, hitting upper circuit limits for three consecutive sessions and gaining 15.7% each. The stocks closed at Rs 50.08 and Rs 303.70 respectively, marking a significant rally in the Reliance Group companies.

Reliance Power's Joint Venture in Bhutan

The surge in Reliance Power's stock price was primarily driven by the incorporation of GDL - Reliance Solar Pte Ltd in Bhutan. This new entity is a 50:50 joint venture between Green Digital Private Limited and Reliance Enterprises Private Limited. Through this structure, Reliance Power has secured an indirect 25% stake in the venture, signaling its expansion into the renewable energy sector in Bhutan.

Reliance Infrastructure's Solar Project Award

Reliance Infrastructure received a major boost with the announcement of a Letter of Award from NHPC for a substantial solar project. The company has been tasked with developing a 390 MW solar project coupled with a 780 MWh Battery Energy Storage System (BESS). The project comes with a tariff of Rs 3.13/kWh, highlighting its competitive positioning in the renewable energy market.

Strengthening Reliance Group's Renewable Portfolio

These developments have significantly bolstered the Reliance Group's position in the renewable energy sector. With these additions, the group now boasts over 3 GWp of solar capacity and a 3.5 GWh storage pipeline. This expansion has positioned Reliance Group as India's largest integrated Solar + BESS player, showcasing its commitment to clean energy solutions.

Market Impact

The positive news flow has resulted in strong investor interest, reflected in the rapid stock price appreciation of both Reliance Power and Reliance Infrastructure. The consecutive upper circuit hits underscore the market's optimistic outlook on the group's renewable energy initiatives.

Conclusion

As India continues to push for greater adoption of renewable energy, the strategic moves by Reliance Power and Reliance Infrastructure appear to be well-timed. The market's enthusiastic response suggests that investors are keenly watching the group's expansion in the solar and energy storage sectors, potentially seeing these developments as key drivers for future growth.

Reliance Infrastructure Limited (RInfra) has been awarded a significant 390 MW interstate transmission system-connected solar power project with Battery Energy Storage System (BESS) by NHPC, a leading Navratna public sector enterprise. This development marks a substantial expansion of Reliance Group's renewable energy portfolio.

Project Details

The project encompasses the installation of 700 MWp of solar DC capacity and 780 MWhr of Battery Energy Storage System capacity. This addition will significantly bolster Reliance Group's clean energy pipeline, which now stands at over 3 GWp of Solar DC capacity and more than 3.5 GWhr of BESS capacity.

Competitive Bidding

RInfra secured the project through a competitive bidding process, with the winning tariff set at INR 3.13/kWh. The tender attracted considerable interest from the industry, with 15 entities participating and 14 qualifying for the e-reverse auction. Notably, the tender was oversubscribed by nearly 4 times, highlighting the growing focus on dispatchable renewable energy solutions in India.

Reliance Group's Growing Renewable Portfolio

With this new project, Reliance Group has solidified its position as India's largest player in the integrated Solar + BESS segment. Reliance Power, a listed entity within the group, already boasts a renewable energy portfolio of nearly 2.5 GWp of Solar and 2.5 GWhr of BESS capacity.

Strategic Significance

This project award underscores Reliance Group's commitment to becoming a leading player in India's renewable energy sector. It aligns with the group's strategic vision to transition towards cleaner energy sources and play a pivotal role in shaping the country's sustainable energy future.

Market Impact

The successful bid for this large-scale solar-plus-storage project demonstrates Reliance Infrastructure's growing capabilities in the renewable energy sector. It also reflects the increasing importance of energy storage solutions in India's power market, as the country aims to integrate higher shares of variable renewable energy into its grid.

As India continues to push for ambitious renewable energy targets, projects like this are expected to play a crucial role in ensuring grid stability and round-the-clock power supply from clean energy sources. Reliance Infrastructure's success in securing this project positions the company at the forefront of this important transition in India's energy landscape.