The LOI, which comes following Torrent Power’s successful bid, signifies MSEDCL’s intent to procure 1,500 MW of energy storage capacity through a pumped hydro storage project.

The detailed Letter of Award will be issued upon approval from the Maharashtra Electricity Regulatory Commission (MERC), in accordance with the tender document’s quoted tariff, it said in a statement.

The pumped hydro storage project, which will deliver power to MSEDCL over a 40-year period, is part of Torrent Power’s broader strategy to enhance energy storage capabilities.

As per the Pumped Hydro Energy Storage Facility Agreement (PHESFA), Torrent Power will provide a contracted capacity of 1,500 MW with a discharge capability of eight hours per day, including a maximum continuous discharge of five hours.

The move aligns with the increasing need for reliable energy storage solutions, driven by the growing penetration of solar and wind energy. Torrent Power has identified multiple potential sites for pumped hydro storage projects across various states and has announced plans to install 5-8 GW of capacity, with an investment ranging from ₹25,000-35,000 crore.

As one of India’s leading power sector companies, Torrent Power, with a market capitalisation of ₹27,183 crore and part of the ₹41,000-crore Torrent Group, operates across the entire power value chain, including generation, transmission, and distribution.

Shares of Torrent Power ended 0.14% lower at ₹1,779 on Tuesday.

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