Essar to Invest ₹4,500 Crore in 300 MW FDRE Project with NHPC

Essar Power will invest approximately ₹4,500 crore in a 300 MW Firm and Dispatchable Renewable Energy (FDRE) project in Andhra Pradesh, following a Power Purchase Agreement (PPA) signed between its renewable energy arm, Essar Renewables Limited (ERL), and state-owned NHPC Limited. The project will integrate solar and wind generation with Battery Energy Storage Systems (BESS) to deliver reliable, dispatchable renewable electricity.

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.

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.”

NHPC Limited, a Navratna enterprise of the Government of India under the Ministry of Power, is India’s largest hydropower development organisation. Over the years, NHPC has diversified its operations into solar and wind energy and is strengthening its presence across the renewable energy sector.

Essar Power’s energy strategy reflects a balanced approach to India’s evolving energy landscape, combining investments in renewable energy and emerging clean energy solutions with reliable conventional power generation. As electricity demand continues to grow across India’s industrial and urban centres, Essar Power is focused on building an integrated energy portfolio that supports energy security, grid reliability and the country’s transition towards a lower-carbon future. These initiatives align with India’s national energy priorities and contribute to its target of achieving 500 GW of renewable energy capacity by 2030.

Essar Renewables Limited (ERL) is part of Essar Power and is focused on developing and scaling renewable energy solutions in India and international markets. The company is pursuing opportunities across utility-scale renewable energy, captive renewable power and emerging clean energy solutions, supporting the transition towards a sustainable and low-carbon energy ecosystem. Essar Renewables has already secured three major renewable energy tenders from central public sector undertakings NHPC and SJVN, with an aggregate awarded capacity of ~1 GW.

Essar is a global conglomerate of ecosystems with a portfolio of world-class assets. With over five decades of entrepreneurial experience, the Group has built and scaled businesses across global markets, executing investments exceeding US$30 billion. Today, the Group operates across the Energy, Infrastructure, Metals & Mining, and Technology & Retail sectors, generating approximately US$15 billion in annual revenues and employing more than 7,000 people worldwide.

Essar Power is focused on building a diversified 5 GW energy portfolio spanning renewable, thermal and gas-based power generation, strengthening its conventional generation capabilities while accelerating its transition towards cleaner energy.

A pioneer in India’s private power sector, Essar Power has over 30 years of experience in power generation and transmission. Over this period, the company has built and operated more than 5 GW of capacity and 464km of transmission lines, with cumulative investments of nearly 30,000 crore.