Reliance Infra, Power shares up 10%: What's the reason?
What's the story
Shares of Anil Ambani-led Reliance Infrastructure and Reliance Power have witnessed a massive surge over the last two trading sessions. The jump comes on the back of major project-related announcements that have positively impacted investor sentiment. Reliance Infrastructure's stock rose by 10.28% to hit a high of ₹289.25 on BSE as of today, while Reliance Power's stocks jumped by 10.2% to a high of ₹47.70 during the same period.
Market response
Major announcements boost investor sentiment
The recent rally in Reliance's stock prices was triggered by two major developments. Reliance Infrastructure won a Letter of Award (LoA) from NHPC for a 390MW solar power project with an integrated Battery Energy Storage System (BESS). Meanwhile, Reliance Power announced its entry into a joint venture in Bhutan, further expanding its clean energy portfolio.
Project specifics
Competitive tariff for solar power project
The solar power project won by Reliance Infrastructure will add 700MWp of solar DC capacity and 780MWh of storage capacity to the Reliance Group's portfolio. The winning tariff for this project was discovered at ₹3.13/kWh, one of the most competitively priced in India's energy transition landscape. The tender attracted strong participation from 15 entities, with 14 qualifying for an e-reverse auction, underscoring the industry interest in dispatchable renewable energy solutions.
Pipeline growth
Project win expands Reliance's clean energy portfolio
With this project win, the Reliance's clean energy pipeline will grow to over 3GW of solar DC capacity and 3.5GWh of storage capacity. This makes it India's biggest player in the integrated solar plus BESS segment. The company said that this bid is another step toward its vision of building scale in renewable energy and energy storage infrastructure.
JV details
A look at the JV in Bhutan
Reliance Power, which already has a renewable energy portfolio of almost 2.5GW of solar and 2.5GWh of BESS capacity, announced the incorporation of GDL - Reliance Solar Pte Ltd (GRSPL) in Bhutan. The entity is a 50:50 JV between Green Digital Private Limited (a state-owned enterprise of Royal Government of Bhutan) and Reliance Enterprises Private Limited (REPL).