Essar Renewables, the renewable energy arm of Essar Power, has signed a Power Purchase Agreement (PPA) with NHPC for a 300 MW renewable energy project in Andhra Pradesh. The agreement follows the company’s successful bid for the project two years ago.

Essar Power will invest approximately Rs. 45 bn in the development. The project will combine solar and wind generation with Battery Energy Storage Systems (BESS), enabling the supply of reliable and dispatchable renewable power. It forms part of Essar Power’s plan to build a diversified energy portfolio of approximately 5 GW across renewable, thermal and gas-based generation.

NHPC awarded bids for a 1.2 GW Firm and Dispatchable Renewable Energy (FDRE) project under Tranche II. Capacity was allocated to five bidders: Essar Renewables, Juniper Green Energy, Serentica Renewables, Hexa Climate Solutions and Avaada Energy.

Essar Renewables received 300 MW, while Juniper Green Energy and Serentica Renewables secured 200 MW and 150 MW, respectively. All three companies quoted a tariff of Rs. 4.37 per kWh. Hexa Climate Solutions won 80 MW at the same tariff, while Avaada Energy secured 470 MW at Rs. 4.38 per kWh.

The successful bidders are expected to establish Inter-State Transmission System-connected renewable energy projects linked to storage systems. These projects will supply 1.2 GW of firm and dispatchable renewable energy in India under a Build-Own-Operate model. Srinivasan Vaidyanathan, Operating Partner for Infrastructure at Essar Group, said the group’s energy experience and focus on emerging technologies would support its participation in India’s evolving energy sector.