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 committing about ₹4,500 crore to develop the facility.
The Essar Group company said the project will combine solar and wind generation with Battery Energy Storage Systems to deliver renewable electricity that can be supplied reliably and dispatched as required. The agreement places the project within the emerging segment of renewable power designed to address the variability of individual solar and wind assets.
Essar Renewables is the renewable-energy arm of Essar Power. The company said the Andhra Pradesh project will form part of its strategy to build a diversified energy portfolio of about 5 GW across renewable, thermal and gas-based power generation.
Srinivasan Vaidyanathan, Operating Partner – Infrastructure, Essar Group, said Essar’s experience in the energy sector, together with its focus on new technologies and emerging opportunities, provides a foundation for participating in the next phase of India’s energy growth.
Ankur Kumar, CEO, 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 advance its ambition to build a scalable renewable-energy business.
Firm and Dispatchable Renewable Energy projects are intended to integrate generation and storage so that electricity is available beyond the hours when solar generation is at its peak or when wind conditions are favourable. The company’s announcement did not provide the project’s construction schedule, location details within Andhra Pradesh, the planned commissioning date, the generation-storage configuration or the investment’s proposed funding structure.
NHPC, described by Essar Power as the largest hydropower development organisation, has expanded beyond hydropower into solar and wind energy. The public-sector company has been strengthening its presence across the renewable-energy sector as electricity demand grows across India’s industrial and urban centres.
Essar Power said its initiatives were aligned with India’s national energy priorities and the country’s target of achieving 500 GW of renewable-energy capacity by 2030. The company also linked the project to energy security, grid reliability and the transition towards lower-carbon power.
The next project milestones, including detailed execution timelines and the construction and commissioning plan, were not specified in the announcement.
