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, India.
Essar Power plans to invest approximately ₹4,500 crore (US$48m) in the project, which will combine solar and wind generation with battery energy storage systems (BESS) to provide dispatchable renewable electricity.
The project forms part of Essar Power’s plan to develop an energy portfolio of around 5 GW spanning renewable, thermal and gas-based generation.
“At Essar Renewables, we are focused on building a strong portfolio across solar, wind and Battery Energy Storage Systems,” said Ankur Kumar, CEO of Essar Power. “The 300 MW 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.”
The companies have not disclosed the project’s expected annual generation, BESS capacity, technology configuration or scheduled commissioning date.
The agreement adds to Essar Renewables’ portfolio of projects awarded through tenders from Indian central public sector undertakings. The company said it has secured three renewable energy tenders from NHPC and SJVN, with an aggregate awarded capacity of about 1 GW.
NHPC, a state-owned enterprise under India’s Ministry of Power, has historically focused on hydropower but has expanded into solar and wind generation.
Essar Power said its wider 5 GW strategy will combine renewable generation and emerging clean-energy technologies with conventional power assets. The company has more than 30 years of experience in power generation and transmission and has previously developed and operated more than 5 GW of generation capacity and 464 km of transmission lines.
