New Delhi: Essar Renewables Limited (ERL), the renewable energy arm of Essar Power, has signed a Power Purchase Agreement (PPA) with NHPC Limited for a 300 MW Firm and Dispatchable Renewable Energy (FDRE) project in Andhra Pradesh. Essar Power plans to invest approximately ₹4,500 crore in the project, which will combine solar and wind power generation with Battery Energy Storage Systems (BESS).
The integrated renewable energy project is designed to provide reliable and dispatchable electricity by combining multiple clean energy sources with battery storage. The initiative marks a significant step in Essar Power’s strategy to develop a diversified energy portfolio of approximately 5 GW across renewable, thermal and gas-based power generation.
Essar Renewables Signs 300 MW FDRE Agreement with NHPC
Under the agreement, Essar Renewables will develop a 300 MW FDRE project in Andhra Pradesh. The project will integrate solar and wind energy generation with battery storage facilities to ensure a more consistent and reliable supply of renewable electricity.
The use of Battery Energy Storage Systems will help manage fluctuations in solar and wind power generation and support the delivery of electricity according to demand requirements.
The proposed investment of approximately ₹4,500 crore highlights Essar Power’s commitment to expanding its presence in India’s renewable energy sector and developing integrated clean energy solutions.
Essar Power Expands Its Renewable Energy Portfolio
The 300 MW FDRE project is an important part of Essar Power’s ambition to build an approximately 5 GW diversified energy portfolio. The company’s strategy includes investments in renewable energy, thermal power and gas-based generation.
Commenting on the development, Srinivasan Vaidyanathan, Operating Partner – Infrastructure, Essar Group, said that building a reliable and sustainable energy ecosystem would be essential as India progresses towards its vision of Viksit Bharat.
He highlighted that Essar’s experience in the energy sector, combined with its focus on new technologies and emerging opportunities, provides a strong foundation for participating in India’s next phase of energy growth.
Essar Power Focuses on Solar, Wind and Battery Storage
Ankur Kumar, CEO of Essar Power, said the company is focused on building a strong portfolio across solar, wind and battery energy storage systems to tap opportunities in India’s expanding renewable energy market.
He described the 300 MW FDRE project with NHPC as an important milestone in strengthening Essar Renewables’ portfolio and advancing its ambition to develop a scalable renewable energy business.
The integration of solar, wind and battery storage is expected to support reliable electricity supply while addressing the intermittent nature of renewable energy sources.
NHPC Strengthens Its Renewable Energy Presence
NHPC Limited, a Navratna public sector enterprise under the Ministry of Power, is India’s largest hydropower development organisation. Over the years, the company has diversified its operations beyond hydropower into solar and wind energy.
The agreement with Essar Renewables reflects the growing importance of partnerships and integrated renewable energy projects in India’s power sector. Such projects combine generation and storage technologies to support electricity demand and improve grid reliability.
Essar’s Integrated Energy Strategy Supports India’s Energy Transition
Essar Power’s investment in the 300 MW FDRE project forms part of its broader strategy to develop an integrated energy portfolio capable of supporting India’s growing electricity requirements across industrial and urban centres.
By combining solar and wind generation with battery storage, the project aims to contribute to energy security, grid reliability and the transition towards a lower-carbon power system.
The proposed ₹4,500 crore investment also aligns with India’s broader renewable energy ambitions, including its target of achieving 500 GW of renewable energy capacity by 2030.
About NHPC Limited and Essar Power
NHPC Limited is a Navratna public sector enterprise under the Ministry of Power and India’s largest hydropower development organisation. It has expanded its operations into solar and wind energy as part of its growing renewable energy portfolio.
Essar Power is part of the Essar Group and operates in the energy sector. Through its renewable energy arm, Essar Renewables Limited, the company is expanding its presence in solar, wind and battery energy storage while pursuing its ambition to build an approximately 5 GW diversified energy portfolio.
