Two years after securing NHPC’s 300 MW renewable energy project, Essar Renewables (ERL), the renewable energy arm of Essar Power, has signed a Power Purchase Agreement (PPA) with the state-owned power company. The project will be developed in Andhra Pradesh.

Essar Power plans to invest approximately Rs. 45 bn in the project, which will combine solar and wind generation with Battery Energy Storage Systems (BESS). The integrated facility is intended to provide reliable and dispatchable renewable power as part of Essar Power’s broader plan to establish an energy portfolio of approximately 5 GW across renewable, thermal and gas-based generation.

The project was awarded under NHPC’s 1.2 GW Firm and Dispatchable Renewable Energy (FDRE) tender under Tranche II. NHPC allocated capacity to five successful bidders, with Essar Renewables receiving the largest individual allocation of 300 MW.

Juniper Green Energy and Serentica Renewables secured 200 MW and 150 MW, respectively, at a quoted tariff of Rs. 4.37 per kWh. Hexa Climate Solutions received 80 MW at the same tariff, while Avaada Energy secured 470 MW at Rs. 4.38 per kWh. The allocations together account for the full 1.2 GW tender capacity.

The selected developers are required to establish Inter-State Transmission System (ISTS)-connected renewable energy projects coupled with energy storage systems. The power will be supplied in India under a Build-Own-Operate (BOO) model. Srinivasan Vaidyanathan, operating partner for infrastructure at Essar Group, said the company’s experience in the energy sector and focus on new technologies would support its participation in India’s next phase of energy growth.