Essar Power’s energy arm Essar Renewables has entered into a power purchase agreement (PPA) with NHPC to develop a 300MW firm and dispatchable renewable energy (FDRE) project in Andhra Pradesh, India.
According to an announcement from Essar Renewables, the parent company will invest around Rs45bn ($476m) in the initiative.
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The planned project will incorporate wind, solar, and battery energy storage to provide reliable and dispatchable renewable electricity.
Essar Renewables stated that this venture forms part of its wider strategy to construct a diversified energy portfolio of roughly 5GW, combining thermal, renewable, and gas-based power generation assets.
Essar Power CEO Ankur Kumar said: “At Essar Renewables, we are focused on building a strong portfolio across solar, wind and battery energy storage systems, tapping into the growing opportunities in India’s renewable energy sector.
“The 300MW FDRE project with NHPC is an important milestone in this journey, strengthening our portfolio and advancing our ambition to build a scalable renewable energy business.”
NHPC, which operates as a Navratna enterprise under the Ministry of Power, has been extending its presence into the solar and wind sectors.
The state-owned organisation has diversified its operations as part of efforts to boost its role in the renewable energy market.
Essar Power’s approach reflects a combination of investments in both renewable and conventional power sources, aiming to support India’s energy security and its targets for lower-carbon electricity generation.
The company notes that these steps align with national priorities to achieve 500GW of renewable energy capacity by 2030, as electricity demand rises in the country’s industrial and urban areas.
In December 2025, NHPC, along with its joint venture and subsidiary companies, announced plans to construct eight hydroelectric projects with a total capacity of 8.51GW.
