Tata Power Company Limited has received a Letter of Award from the Solar Energy Corporation of India for a 324 megawatt (MW) pumped storage plant (PSP) with a storage capacity of 2,592 megawatt hours (MWh). The award establishes a 40-year agreement under which the company is to provide energy storage services and will secure an annual fixed charge equal to Rs 3,513 million (mn). The information is disclosed in the company regulatory filing.\n\nUnder the terms the company will receive a fixed annual charge of Rs 10.84 million (mn) per MW, which for the 324 MW capacity equates to the stated Rs 3,513 mn. The letter specifies an annual cycle loss of 24.61 per cent for the storage facility. The Pumped Storage Purchase Agreement is to be signed after SECI finalises sale agreements with the buying entities.\n\nThe company is required to commission and begin supplying storage capacity within 36 months of the effective date of the agreement. The project is intended to store surplus renewable generation and supply power during peak demand to enhance grid reliability. The asset is presented as a component of broader efforts to strengthen clean energy infrastructure and support India's energy transition goals.\n\nThe 40-year tenure provides a long-term revenue stream that the company says will underpin investment in storage and related operations while aligning with national targets for renewable integration. SECI will sign the Pumped Storage Purchase Agreement with Tata Power once the sales agreements with procuring parties are finalised, and the company will proceed with detailed engineering and construction to meet the commissioning deadline. The project is presented as an example of utility scale storage that can complement intermittent generation and support system flexibility, frequency management and peak shaving. Market observers note that operational performance will determine the asset contribution to regional supply adequacy over the contract life.