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 will invest approximately ₹4,500 crore in the project, which will integrate solar, wind and Battery Energy Storage Systems (BESS) to deliver reliable and dispatchable renewable power. The announcement was made from Mumbai on 4 November 2026.
What the project combines
An FDRE project is designed to supply renewable power that can be scheduled to match demand, rather than only when the sun shines or the wind blows. Essar says its 300 MW project in Andhra Pradesh will do this by combining solar, wind and battery storage. The company’s release does not disclose the project site within the state, the commissioning date, the split of capacity between solar, wind and BESS, or the tariff, and those details are not reported here.
Part of a 5 GW plan
According to Essar, the project is part of Essar Power’s strategy to build a diversified energy portfolio of approximately 5 GW, spanning renewable, thermal and gas-based power generation. Essar Power is described as having more than 30 years of experience in power generation and transmission, during which it has built and operated more than 5 GW of capacity and 464 km of transmission lines, with cumulative investments of nearly ₹30,000 crore.
Essar Renewables has already secured three major renewable energy tenders from central public sector undertakings NHPC and SJVN, with an aggregate awarded capacity of about 1 GW. The company says it is pursuing opportunities across utility-scale renewable energy, captive renewable power and emerging clean energy solutions in India and international markets.
Company statements
Srinivasan Vaidyanathan, Operating Partner – Infrastructure at Essar Group, said that as India advances towards the vision of Viksit Bharat, building a reliable and sustainable energy ecosystem will be critical, and that Essar’s experience and focus on new technologies give it a strong foundation to take part in the next phase of India’s energy growth.
Ankur Kumar, CEO of Essar Power, said Essar Renewables is focused on building a strong portfolio across solar, wind and BESS, and described the 300 MW FDRE project with NHPC as an important milestone that strengthens its portfolio and advances its ambition to build a scalable renewable energy business.
The counterparty: NHPC
NHPC Limited is a Navratna enterprise of the Government of India under the Ministry of Power and India’s largest hydropower development organisation. Over the years, NHPC has diversified into solar and wind energy and is strengthening its presence across the renewable energy sector. The PPA is signed with NHPC as the counterparty.
What it means for India’s clean-energy sector
FDRE contracts allow renewable power to be offered with firm, scheduled supply, and they drew interest from international delegates at the Bharat Renewable Energy Summit held in Delhi this week. By combining three components, solar, wind and storage, in a single project, the Essar-NHPC PPA adds another dispatchable renewable project to the pipeline of central public-sector tenders.
The company puts the investment at approximately ₹4,500 crore for the 300 MW project. Essar frames the project within India’s target of 500 GW of renewable energy capacity by 2030 and the country’s national energy priorities. Further details, including project timelines, are not part of the release.
Official references
- Essar Group press release, “Essar signs PPA with NHPC for 300 MW renewable energy project, to invest ₹4,500 crore”, Mumbai, 4 November 2026 – essar.com
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