By Chaitanya
BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance
In a significant development for India’s renewable energy sector, PNC Infratech has secured a major contract from NHPC Limited. The infrastructure giant will develop a substantial 300 MW Inter-State Transmission System (ISTS) connected solar power project, which crucially includes an integrated 150 MW / 600 MWh battery energy storage system (BESS). This landmark win positions the PNC Infratech Solar Project as a key step in the company’s strategic expansion into green energy, aligning with the nation’s ambitious clean energy targets.
The contract, awarded through a highly competitive Tariff-Based Competitive Bidding (TBCB) process, saw PNC Infratech emerge as the lowest bidder (L1). The company quoted an attractive tariff of ₹3.13 per kilowatt-hour (kWh), making it an economically viable proposition for long-term power supply. The formal Letter of Award was issued on August 15, 2025, cementing this pivotal deal.
Project Scope and Key Details
This isn’t just about solar panels; the inclusion of a significant battery storage system is a game-changer. It ensures a more stable and reliable power supply, capable of dispatching electricity even when the sun isn’t shining. The project’s design allows for flexibility, being implementable anywhere in India that adheres to ISTS guidelines, ensuring optimal connectivity to the national grid.
The Power Purchase Agreement (PPA) for this project will span a robust 25 years, starting from the Scheduled Commencement of Supply Date (SCSD). This SCSD is targeted for 24 months from the effective date of the PPA, indicating a clear and relatively swift execution timeline for such a large-scale project. This long-term agreement provides stability and predictable revenue for PNC Infratech.
Here’s a snapshot of the project specifics:
| Particular | Details |
|---|---|
| Name of the Entity Awarding the Order | NHPC Limited |
| Nature of Order | Setting up 300 MW ISTS Connected Solar Power Project with 150MW/600MWh Energy Storage Systems (ESS) |
| Order Type | Domestic |
| Scheduled Commencement of Supply Date (SCSD) | 24 months from Effective Date of Power Purchase Agreement |
| Power Purchase Agreement Operation Period | 25 years from SCSD |
| Quoted Tariff | ₹3.13 per kWh |
Investor Confidence and Market Impact
The news of PNC Infratech securing this high-profile project was met with immediate positivity in the stock market. According to financial news outlets, following the announcement on July 16, 2025, that PNC Infratech was the lowest bidder, the company’s shares witnessed a surge. On July 17, 2025, PNC Infratech’s stock price rose by approximately 5%, closing at Rs. 327. This upward movement clearly reflects strong investor confidence in the company’s diversification strategy and its future prospects in the burgeoning renewable energy sector.
This particular 300 MW project is a segment of NHPC’s larger tender for 1,200 MW of solar capacity combined with 600 MW / 2,400 MWh of energy storage. The fact that PNC Infratech successfully outbid competitors in this significant tender speaks volumes about its competitive edge and technical capabilities. The company’s management has confirmed that the trading window for designated employees remains closed until 48 hours post the financial results for Q1 ending June 30, 2025, ensuring regulatory compliance regarding sensitive price information.
Looking Ahead: A Green Horizon for PNC Infratech
The awarding of this PNC Infratech Solar Project marks a pivotal moment for the company, firmly establishing its footprint in India’s renewable energy landscape. With a strong track record in infrastructure development, this venture into solar power with integrated battery storage showcases PNC Infratech’s adaptability and foresight in embracing future energy trends.
Industry experts and market analysts view this move as highly strategic, providing PNC Infratech with a stable, long-term revenue stream while contributing significantly to India’s national goal of increasing its renewable energy portfolio and reducing carbon emissions. The successful execution of this project will undoubtedly enhance PNC Infratech’s reputation and open doors to more opportunities in the rapidly expanding clean energy market.
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