Tata Power shares were rising on Tuesday after the company won a contract to deliver power to an iron casting firm.

What Happened: Tata Power Renewable Energy (TPREL) has inked a power distribution agreement with Neosym Industry for a significant solar project in Maharashtra, India.

The 26-megawatt solar plant, set to begin operations in March 2024, is expected to generate 59 million units of electricity annually and reduce carbon dioxide emissions by around 32,500 tonnes each year.

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Why It Matters: Group captive solar projects like these are actively promoted by the government as they involve limited investment and risk. They are supported by incentives such as renewable purchase obligations (RPOs), encouraging businesses to embrace sustainable energy.

TPREL’s current renewable capacity stands at 7,821 megawatts, with an operational capacity of 4,132 megawatts, including solar and wind energy.

Price Action: Tata Power’s share price was up 0.46% at ₹260.35 at the start of trade on Tuesday.

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