Tata Power is committing serious capital to grid-scale energy storage.
The utility's board of directors cleared an investment of ₹11,871 crore to build a 1,800 MW pumped storage hydro project at Shirwata in Maharashtra. The facility will expand the company's existing generation base—which currently stands at 16.9 GW operating at optimum capacity utilization levels—to back continuous, round-the-clock power requirements across the regional grid.
Execution begins immediately under a tight deadline. Construction and capacity addition are scheduled for completion within 51 months, according to the company's regulatory filing to the stock exchanges.
To bankroll the development, the board settled on a capital structure financed through 75 percent debt and 25 percent equity. The model ensures heavy debt leverage while Tata Power preserves balance-sheet cash for parallel generation assets.
| Project Parameter | Approved Specification |
|---|---|
| Facility Location | Shirwata, Maharashtra |
| Capital Expenditure | ₹11,871 crore |
| Storage Capacity | 1,800 MW |
| Tata Power Current Portfolio | 16.9 GW (optimum utilization) |
| Project Execution Timeline | 51 months |
| Financing Structure | 75% Debt : 25% Equity |
Regarding the operating logic behind the capital allocation, Tata Power highlighted the project's direct mandate to stabilize clean power delivery for high-demand sectors:
Pumped Storage Hydro Project (PSP) will be instrumental in Renewable Energy Round the Clock (RE
RTC) applications, facilitating energy shifting, and contributing to decarbonize the hard to abate industries."
Market Context: Intermittent generation remains the primary roadblock for industrial supply chains and commercial EV fleet ecosystems demanding steady power around the clock. By storing surplus power and discharging it during peak load windows, pumped hydro acts as a mechanical battery for the grid. Tata Power now faces a 51-month countdown to bring the Shirwata facility online.