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 and wind generation with battery energy storage systems (BESS).
Announced on 4 November 2026, the project is intended to supply firm and dispatchable renewable electricity. It forms part of Essar Power’s strategy to build a diversified energy portfolio of approximately 5 GW across renewable, thermal and gas-based power generation.
Commenting on the development, Srinivasan Vaidyanathan, Operating Partner – Infrastructure, Essar Group, said:
“As India advances towards the vision of Viksit Bharat, building a reliable and sustainable energy ecosystem will be critical to supporting its ambitions. Essar’s experience in the energy sector, combined with our focus on new technologies and emerging opportunities, gives us a strong foundation to participate in this next phase of India’s energy growth.”
Ankur Kumar, CEO, Essar Power, added:
“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 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.”
Essar’s renewable energy portfolio
The PPA signing advances a project that Essar Renewables had previously secured through NHPC’s 1,200 MW FDRE Tranche-II tender. In September 2024, NHPC announced Essar Renewables as one of five successful bidders, allocating 300 MW to the company at a quoted tariff of ₹4.37 per kWh. The other selected developers were Juniper Green Energy, Serentica Renewables, Hexa Climate Solutions and Avaada Energy.
Essar Renewables says it has secured three major renewable energy tenders from NHPC and SJVN, with a combined awarded capacity of approximately 1 GW. The company is pursuing opportunities in utility-scale renewable energy, captive renewable power and emerging clean energy solutions.
NHPC, a Navratna public sector enterprise under the Ministry of Power, has expanded beyond hydropower into solar and wind energy. It also acts as an intermediary procurer of renewable power from developers.
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The 300 MW agreement adds a solar-wind-plus-storage project to Essar’s renewable energy portfolio. By combining variable renewable generation with battery storage, FDRE projects are designed to make electricity supply more predictable and better aligned with scheduled demand.
The latest development is the signing of the PPA, rather than the announcement of a new tender award. Essar had secured the 300 MW allocation in 2024; the November 2026 agreement marks a subsequent step towards implementing the project.
The company has disclosed an intended investment of approximately ₹4,500 crore, but has not specified the project’s construction schedule, commissioning date, solar and wind capacity split, or battery storage capacity in the announcement. These details will be important for assessing the project’s delivery timeline and expected contribution to India’s dispatchable renewable power supply.
