Essar Renewables has signed a Power Purchase Agreement with NHPC for a 300 MW Firm and Dispatchable Renewable Energy project in Andhra Pradesh, with Essar Power planning to invest about ₹4,500 crore in the hybrid solar, wind and battery storage project.
The project is designed to supply renewable electricity that can be delivered reliably and according to demand, rather than depending only on the immediate availability of sunlight or wind. It will combine solar generation, wind power and Battery Energy Storage Systems to create a dispatchable supply for NHPC.
The agreement marks Essar Power’s entry into a large-scale firm renewable energy project and forms part of its plan to build an energy portfolio of about 5 GW. The planned portfolio is expected to span renewable, thermal and gas-based power generation, according to the company.
Srinivasan Vaidyanathan, Operating Partner – Infrastructure at Essar Group, said Essar’s experience in the energy sector, together with its focus on new technologies and emerging opportunities, would support its participation in the next phase of India’s energy growth.
Ankur Kumar, CEO of Essar Power, said the company was focused on building a portfolio across solar, wind and Battery Energy Storage Systems. He said the 300 MW FDRE project with NHPC would strengthen Essar Power’s portfolio and support its plan to establish a scalable renewable energy business.
The project’s structure reflects a growing focus on renewable power that can support grid requirements beyond the hours of peak solar generation. Battery storage can help manage the variability of solar and wind output, although the company’s announcement did not provide details of the planned storage capacity, project location within Andhra Pradesh, construction schedule or commissioning date.
NHPC, India’s largest hydropower development organisation, has expanded beyond hydropower into solar and wind energy. The company has been strengthening its presence across the renewable energy sector as electricity demand rises across industrial and urban centres.
For cities and industries, the relevance of such projects lies in the availability of dependable electricity as demand increases. The integration of generation and storage is intended to support energy security and grid reliability while contributing to the shift towards lower-carbon power. Essar Power said the project aligned with India’s national energy priorities and the country’s target of achieving 500 GW of renewable energy capacity by 2030.
The next stages will involve developing the Andhra Pradesh project and implementing the power purchase agreement between Essar Renewables and NHPC. The companies have not announced a public construction or commissioning timeline in the information available.
