Essar to Invest INR 4,500 Crore In 300 MW FDRE Renewable Energy Project With NHPC

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, wind and Battery Energy Storage Systems (BESS) to supply reliable and dispatchable renewable electricity.

The project marks an important step in Essar Power’s renewable energy expansion strategy and will contribute to its ambition of building a diversified energy portfolio of approximately 5 GW. The proposed portfolio will include renewable, thermal and gas-based power generation, reflecting the company’s focus on balancing clean energy development with conventional power generation.

The integration of solar and wind power with battery storage is expected to support a more consistent electricity supply by addressing the intermittent nature of renewable energy generation. The FDRE configuration will enable the project to deliver power according to specified supply requirements, supporting grid reliability and meeting growing electricity demand.

Commenting on the development, Srinivasan Vaidyanathan, Operating Partner – Infrastructure, Essar Group, said that developing a reliable and sustainable energy ecosystem would be essential as India advances towards its Viksit Bharat vision. He added that Essar’s experience in the energy sector, combined with its focus on new technologies and emerging opportunities, provides a strong foundation to participate in the country’s next phase of energy growth.

Ankur Kumar, CEO of Essar Power, said that Essar Renewables is focused on developing a strong portfolio across solar, wind and battery energy storage. He described the 300 MW FDRE project with NHPC as an important milestone in strengthening the company’s renewable energy portfolio and advancing its ambition to establish a scalable renewable energy business.

NHPC Limited is a Navratna public sector enterprise under the Ministry of Power and is recognised as India’s largest hydropower development organisation. The company has gradually diversified its operations beyond hydropower into solar and wind energy, strengthening its presence in the renewable energy sector.

Essar Power’s investment reflects its strategy to participate in India’s changing energy landscape through renewable energy and emerging clean energy technologies alongside conventional generation. With electricity demand increasing across industrial and urban centres, the company aims to develop an integrated energy portfolio supporting energy security, grid stability and the country’s transition towards a lower-carbon economy.

The project also aligns with India’s broader renewable energy ambitions, including its target of achieving 500 GW of renewable energy capacity by 2030.