Hexa Climate Signs 160 MW FDRE Power Purchase Agreement With NHPC For Round-The-Clock Clean Energy Supply

Hexa Climate has signed a Power Purchase Agreement (PPA) with NHPC for a 160 MW Firm and Dispatchable Renewable Energy (FDRE) project, marking an important step in India’s clean energy transition. The project is designed to provide renewable power around the clock, addressing one of the key challenges of renewable energy generation—ensuring a reliable electricity supply even after sunset.

Under the agreement, the project will supply firm renewable energy on a 24×7 basis, helping reduce dependence on coal-based power generation while enhancing the country’s energy security. The project capacity includes an 80 MW base allocation along with an additional 80 MW under the green-shoe option, taking the total contracted capacity to 160 MW.

A notable feature of the project is its annual capacity utilization factor of 65 percent, which is considered exceptionally high for renewable energy projects. This level of performance enables the project to qualify as firm and dispatchable renewable energy, ensuring a dependable power supply for the grid.

The tariff for the project has been fixed at ₹4.33 per kWh through a competitive bidding process. The tariff has received regulatory approval from both the Central Electricity Regulatory Commission (CERC) and the Punjab State Electricity Regulatory Commission (PSERC), reflecting confidence in the project’s commercial and operational viability.

The agreement has been signed for a period of 25 years and is connected through the Inter-State Transmission System (ISTS). NHPC will act as the intermediary power procurer, while Punjab State Power Corporation Limited (PSPCL) will be the end distribution company receiving the power.

According to Hexa Climate, the project is expected to avoid approximately 7.47 lakh tonnes of carbon dioxide emissions annually. Over its operational lifetime, the total emission reduction is estimated at around 18.7 million tonnes, equivalent to removing nearly 160,000 cars from the roads each year. The company described the agreement as a significant milestone achieved through strong collaboration, regulatory support, and sustained execution efforts.