Integrated solar, wind and battery-storage project in Andhra Pradesh will support Essar Power’s planned 5 GW diversified energy portfolio.
MUMBAI (India CSR): 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 Rs. 4,500 crore in the project, which will combine solar power, wind energy and Battery Energy Storage Systems (BESS) to deliver reliable, dispatchable renewable electricity.
The agreement marks an important step in Essar Power’s clean-energy growth strategy and supports its ambition to develop a diversified energy portfolio of around 5 GW across renewable, thermal and gas-based generation.
Integrated Renewable Energy
The proposed FDRE project reflects the evolving direction of India’s power sector, where renewable-energy capacity must be supported by storage and grid-responsive systems to ensure dependable electricity supply.
FDRE projects integrate complementary sources of clean power with energy storage. Solar generation is available during daylight hours, wind energy can contribute at different times, while battery storage enables electricity to be retained and supplied when required. This combination can help manage the variability of renewable generation and support a more stable grid.
Reliable Green Power
Unlike standalone solar or wind assets, integrated renewable projects are designed to offer buyers greater predictability in electricity delivery. This is particularly significant for industries, public utilities and large commercial consumers that require consistent power while progressing towards their sustainability and decarbonisation commitments.
The project in Andhra Pradesh is expected to strengthen Essar’s position in the fast-growing market for clean-energy solutions that combine generation, storage and dispatch capability.
Supporting India’s Transition
India’s electricity demand is rising across industrial corridors, cities and expanding digital infrastructure. A reliable renewable-energy ecosystem will be vital to meeting this demand while reducing the carbon intensity of power generation.
Projects that combine solar, wind and battery storage are expected to play an increasingly important role in India’s long-term energy transition. They can enable cleaner power to be supplied beyond the hours when the sun shines or wind conditions are favourable, making renewable energy more practical for round-the-clock electricity needs.
Leadership Perspective Shared
“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,” said Srinivasan Vaidyanathan, Operating Partner – Infrastructure, Essar Group.
Ankur Kumar, CEO, Essar Power, said the new PPA represents an important milestone in the company’s renewable-energy journey.
“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,” he said.
NHPC Partnership Milestone
NHPC Limited, a Navratna enterprise under the Ministry of Power, is India’s largest hydropower development organisation. Over the years, NHPC has diversified into solar and wind energy, strengthening its presence in the country’s renewable-energy sector.
The partnership highlights the importance of collaboration between public-sector energy enterprises and private developers in scaling next-generation clean-energy infrastructure. Such partnerships can help mobilise capital, technology and operational expertise for India’s energy-transition priorities.
Expanding Renewable Portfolio
For Essar Renewables, the PPA adds to a growing project pipeline. The company has secured three major renewable-energy tenders from central public-sector undertakings, including NHPC and SJVN, with an aggregate awarded capacity of around 1 GW.
ERL is pursuing opportunities across utility-scale renewable energy, captive renewable power and emerging clean-energy solutions in India and international markets. The company’s focus on solar, wind and BESS reflects the increasing importance of hybrid renewable systems in the country’s evolving power landscape.
Balanced Energy Strategy
Essar Power has over three decades of experience in power generation and transmission. During this period, it has built and operated more than 5 GW of capacity and 464 km of transmission lines, with cumulative investments of nearly Rs. 30,000 crore.
Its planned 5 GW energy portfolio seeks to balance the expansion of renewable energy with conventional thermal and gas-based generation. This approach is intended to address energy security, grid reliability and the transition towards cleaner power simultaneously.
Powering Sustainable Growth
Though the project is a commercial energy investment rather than a conventional CSR intervention, it has strong relevance for responsible business and sustainability stakeholders. It demonstrates how large infrastructure investments can support economic growth while contributing to a lower-carbon energy future.
Essar Group operates across energy, infrastructure, metals and mining, and technology and retail. With investments exceeding US$30 billion, the Group reports annual revenues of approximately US$15 billion and employs more than 7,000 people globally.
Future Ready Electricity
Essar’s Rs. 4,500 crore commitment is more than a renewable-capacity addition. It is an investment in the systems needed for a resilient, lower-carbon and future-ready power sector.
With the NHPC PPA now in place, Essar Renewables is positioned to advance a portfolio focused on both scale and dispatchability. The project signals the next phase of India’s energy transition, where solar, wind and storage work together to power a cleaner and more reliable future.
