Reliance Power (NSE: RPOWER) wins 50% of SJVN’s FDRE storage tender through NU Energies subsidiary

Reliance Power Limited (NSE: RPOWER) is beginning to rewrite its narrative in India’s energy markets, with its fully owned subsidiary Reliance NU Energies Private Limited clinching the single-largest share, 750 megawatts (MW) of solar coupled with 3,000 megawatt-hours of battery storage, in SJVN Limited’s 1,500 MW / 6,000 MWh Firm and Dispatchable Renewable Energy (FDRE) Inter-State Transmission System (ISTS) auction. This first-of-its-kind renewable-plus-storage procurement round attracted significant attention in the energy sector, not just for its scale but for its design focus on round-the-clock dispatchable clean power to DISCOMs.

The project was awarded on November 10, 2025, and the announcement followed one day later with a media disclosure under the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements. Reliance NU Energies emerged as the most successful participant in the auction, which was oversubscribed 3.3 times and included 14 qualified bidders.

Institutional interest in dispatchable renewable energy models has grown rapidly over the past two years as Indian grid operators and utilities seek to replace peaking coal power with cleaner alternatives. The FDRE model is seen as a structural turning point. Analysts noted that Reliance Power’s tariff of ₹6.74 per kilowatt-hour struck a fine balance between competitiveness and commercial viability, especially given the costs involved in pairing large-scale solar with battery energy storage systems.

How does this tender win elevate Reliance Power’s position in solar and battery infrastructure?

Reliance Power’s journey back to investor relevance appears to be taking shape through its renewable pivot. The SJVN project win takes the group’s cumulative awarded portfolio in the solar-plus-storage space to over 4 gigawatts of solar generation capacity and 6.5 gigawatt-hours of battery storage across four tenders, all secured within the past 10 months. These projects span both central and state-linked Navratna energy enterprises, indicating a deliberate strategy to build institutional alignment in its new energy business.

This swift buildout trajectory stands out in a market where execution delays and financial closures often stall progress. By leveraging the group’s engineering capabilities and historical project experience, Reliance Power has positioned itself as a serious contender in India’s green infrastructure space. While its legacy coal assets, particularly the 3,960 MW Sasan Ultra Mega Power Plant, remain operational, the new strategy signals a dual-track approach where legacy generation is used to finance and de-risk clean energy bets.

The FDRE win also comes at a time when policy signals favor dispatchable renewables. Several central and state energy bodies are exploring time-of-day tariffs and capacity payments, which could boost returns for players operating large hybrid plants with BESS. Reliance NU Energies, as part of Reliance Power, now sits in a strong first-mover position to capitalize on such regulatory tailwinds.

How is the market responding to Reliance Power’s clean energy push?

On November 11, 2025, the stock of Reliance Power Limited traded at ₹40.92, down 0.44 percent from the previous close of ₹41.10. Despite the day’s marginal decline, broader investor sentiment surrounding the counter has shown signs of structural improvement. Over the past six months, the stock has recovered from its March 2025 low of ₹31.27 to test highs of ₹76.49 in June, reflecting increased traction among institutional screens tied to quality re-rating and energy transition exposure.

The traded volume for the day stood at 289.74 lakh shares, translating to a traded value of ₹117.55 crore. With a free float market capitalization of ₹11,703.98 crore and a total market cap of ₹16,923.57 crore, the stock remains firmly within the Nifty Smallcap 50 basket. The stock’s adjusted P/E ratio stands at 56.75, a premium level that suggests future earnings are being priced in ahead of actual project commissioning.

Post the September quarter, financial data aggregators tracking screeners for retail and institutional investors have marked an improvement in Reliance Power’s earnings visibility and compliance metrics. Analysts attributed this to the company’s consistent success in competitive bidding and its ability to secure tariff-backed projects with long-term revenue potential.

Buy-sell momentum remains active, with buy quantity recorded at over 38.63 lakh shares versus a sell quantity of approximately 80.78 lakh shares, indicating speculative trade in the short term. However, portfolio-based investors, particularly those benchmarking against decarbonization indices and SEBI’s thematic mandates, are expected to maintain interest as execution progresses.

What are the technical and strategic components of the awarded SJVN project?

The awarded FDRE project involves development of 900 megawatt-peak (MWp) of solar capacity coupled with over 3,000 megawatt-hours of battery storage. This hybrid configuration is designed to offer dispatchable renewable energy during peak demand hours, addressing both intermittency and demand management challenges in India’s energy mix.

The structure of the FDRE auction marks a turning point. Unlike standalone renewable capacity tenders, FDRE projects involve contractual guarantees to provide firm power, which means that developers must integrate storage, forecasting, and energy management technologies to meet deliverability requirements. The tender’s oversubscription signals that market players are actively preparing to scale such capabilities.

Reliance NU Energies will likely employ modular solar installations, coupled with grid-connected utility-scale lithium-ion battery systems. The capacity size suggests potential for cost optimization through global sourcing contracts and in-house EPC expertise.

While details of the Power Purchase Agreement are not yet publicly disclosed, the expectation is that these will be long-term, fixed-tariff contracts with state or central distribution companies, offering annuity-style cash flow visibility. Industry peers will be watching closely for implementation timelines, as the project could become a template for future hybrid auction structures.

What are the risks and next steps for Reliance Power in delivering this project?

Despite the positive optics around the award, Reliance Power’s next phase involves the harder task of execution. Integrating gigawatt-scale solar projects with multi-gigawatt-hour storage requires supply chain resilience, cost control, and sophisticated grid integration planning. The global battery market remains volatile, and any delays in equipment procurement could affect delivery timelines.

Furthermore, regulatory clarity on storage asset classification, grid balancing obligations, and compensation mechanisms will play a key role in determining project profitability. As India’s regulatory ecosystem around battery storage evolves, early movers like Reliance NU Energies may gain operational experience that translates into competitive advantage in future tenders.

From a capital markets standpoint, successful project delivery could unlock more favorable funding terms, especially from climate finance institutions and ESG-aligned funds. Conversely, any delays or tariff renegotiations may trigger valuation adjustments, particularly given the premium multiples the stock currently commands.

That said, Reliance Power’s coordinated wins across four government-linked clean energy tenders in under a year showcase a broader strategic vision backed by execution discipline. The next 12 to 24 months will be critical in determining whether the company can transition from a power generation laggard to a top-tier clean infrastructure operator.

What are the key takeaways investors and industry should know from Reliance Power’s 750 MW SJVN FDRE award?

• Reliance NU Energies Private Limited secured 750 MW and 3,000 MWh, representing 50 percent of SJVN Limited’s 1,500 MW / 6,000 MWh Firm and Dispatchable Renewable Energy ISTS tender awarded in the November 10, 2025 online auction.
• The awarded tariff of ₹6.74 per kilowatt-hour positions Reliance NU Energies competitively in the hybrid solar plus battery segment while setting a new price reference for large-scale FDRE procurements.
• The project will pair roughly 900 MWp of solar with over 3,000 MWh of battery energy storage, creating dispatchable renewable peaking power aimed at addressing peak demand for distribution companies.
• With this win, the Reliance Group’s awarded pipeline in solar plus BESS expands to more than 4 GWp of solar and 6.5 GWh of storage across four tenders secured within the past year, underscoring rapid portfolio scale-up.
• The SJVN award signals growing market and policy focus on dispatchable renewables in India, increasing the likelihood of more FDRE-style tenders and time-of-day or capacity compensation mechanisms being adopted.
• For investors, Reliance Power Limited’s stock may benefit from a stronger ESG and execution narrative, but valuation upside depends on timely project execution, supply chain stability for batteries, and regulatory clarity on storage.
• Short-term trading flows may remain volatile given the stock’s smallcap positioning and historical range, while medium-term institutional interest could increase if project milestones and PPA execution are achieved on schedule.
• The primary near-term risk is execution: timely procurement, grid integration, and PPA finalisation will determine whether the award translates into durable cash flows and valuation re-rating.