New Delhi: NHPC Limited has signed a long-term Power Purchase Agreement (PPA) with the New Delhi Municipal Council (NDMC) for the supply of electricity from its 800 MW Parbati-II Hydroelectric Project located in Himachal Pradesh. The agreement was formally signed in New Delhi on June 29, 2026.
The 40-year partnership marks a major milestone in strengthening India’s clean energy ecosystem and ensuring long-term renewable power availability for the national capital.
40-Year Long-Term Clean Energy Supply Agreement
Under the agreement, NHPC will supply electricity generated from the Parbati-II Hydroelectric Project to NDMC for a period of 40 years from the Commercial Operation Date (COD).
The deal is expected to provide:
- Stable and reliable renewable electricity supply to NDMC
- Long-term revenue assurance for NHPC
- Strengthened clean energy procurement for Delhi’s civic areas
Officials said the agreement will enhance energy security while supporting India’s transition toward low-carbon and sustainable power sources.
About the 800 MW Parbati-II Hydroelectric Project
The Parbati-II Hydroelectric Project is an 800 MW power station being developed by NHPC in Himachal Pradesh.
It plays an important role in India’s renewable energy expansion by:
- Providing clean and flexible hydropower generation
- Supporting grid stability during peak demand
- Reducing dependence on fossil fuel-based electricity
Hydropower projects like Parbati-II remain a key component of India’s long-term energy transition strategy.
Agreement Signed by Senior Officials
The Power Purchase Agreement was signed by the General Manager (Commercial) of NHPC and the Director of NDMC in the presence of senior officials from both organizations.
Both sides highlighted the importance of long-term agreements in:
- Ensuring uninterrupted power supply
- Strengthening financial stability for producers
- Supporting urban energy planning and sustainability goals
Importance of Power Purchase Agreements
Power Purchase Agreements (PPAs) are long-term contracts between electricity generators and buyers that define supply terms, pricing structures, and contract duration.
Such agreements help:
- Provide financial certainty to power producers
- Ensure consistent electricity supply to consumers
- Support expansion of renewable energy infrastructure
Sector Impact on India’s Clean Energy Transition
The agreement reflects the growing importance of hydropower in India’s renewable energy mix. As urban bodies increase demand for green electricity, hydroelectric projects are playing a crucial role alongside solar and wind energy.
The deal further strengthens NHPC’s position as a leading hydropower producer and supports NDMC’s efforts to secure cleaner and more reliable electricity for the capital region.
About NHPC and NDMC
NHPC Limited is a major public sector hydropower company under the Government of India engaged in planning, development, and operation of hydroelectric power projects across the country.
New Delhi Municipal Council is the civic body responsible for providing electricity, water, and urban infrastructure services in New Delhi, focusing on improving public utilities and sustainable urban development.
Read also: NHPC and UPPCL Sign 40-Year PPA for 260 MW Dulhasti Stage-II Hydropower Project in Jammu & Kashmir
