Essar Renewables Signs PPA with NHPC for 300 MW FDRE Project in Andhra Pradesh

Essar Renewables has signed a Power Purchase Agreement with NHPC for a 300 MW Firm and Dispatchable Renewable Energy project in Andhra Pradesh. Essar Power will invest approximately ₹4,500 crore to integrate solar, wind, and battery storage systems as part of its broader energy portfolio expansion.

NEW DELHI: Essar Renewables, the renewable energy arm of Essar Power, has signed a Power Purchase Agreement (PPA) with NHPC for a 300 MW Firm and Dispatchable Renewable Energy (FDRE) project located in Andhra Pradesh. According to the company, Essar Power will invest about ₹4,500 crore in the development.

The project will integrate solar, wind, and Battery Energy Storage Systems (BESS) to deliver reliable and dispatchable renewable power. This initiative forms part of Essar Power’s broader strategy to build a diversified energy portfolio of approximately 5 GW, spanning renewable, thermal, and gas-based power generation.

Srinivasan Vaidyanathan, Operating Partner for Infrastructure at the Essar Group, stated that the company’s background in the energy sector, paired with a focus on emerging technologies, provides a solid foundation to participate in the next phase of India’s energy growth.

Ankur Kumar, CEO of Essar Power, noted that the company remains focused on building a robust portfolio across solar, wind, and storage systems to tap into growing opportunities within India’s renewable energy sector. He added that the 300 MW project with NHPC will strengthen the company’s portfolio and advance its ambition to establish a scalable renewable energy business.

NHPC, recognized as a major hydropower development organization, has increasingly diversified its operations into solar and wind energy, strengthening its overall footprint in the renewable sector.

As electricity demand rises across India’s industrial and urban centers, Essar Power aims to build an integrated energy portfolio designed to support energy security, grid reliability, and the country's transition toward a lower-carbon future. The company stated that these initiatives align with India's national energy priorities and contribute to the national target of achieving 500 GW of renewable energy capacity by 2030.

"The ₹4,500 crore investment by Essar Renewables into the 300 MW FDRE project with NHPC highlights a strategic shift toward reliable, round-the-clock green power by integrating solar, wind, and battery storage. As India targets 500 GW of renewable capacity by 2030, projects that address grid reliability and dispatchability through advanced storage systems will become vital for meeting growing industrial and urban power demands." — Dr. Shishir Gupta, Founder & CEO, StartupLanes