Essar Power plans to invest Rs. 45 bn in a 300 MW renewable energy project in Andhra Pradesh after signing a power purchase agreement with NHPC. The project is designed to provide firm and dispatchable renewable energy, combining solar and wind generation with battery storage.

Essar Renewables, the renewable energy arm of Essar Power, signed the agreement with state-run NHPC for the project. The facility will use battery energy storage systems (BESS) to support the delivery of electricity according to contracted supply schedules, helping address the intermittent nature of solar and wind generation.

The investment forms part of Essar Power’s plan to build an energy portfolio of about 5 GW across renewable, thermal and gas-based generation. The company intends to expand its clean energy operations while retaining conventional power generation within its wider energy strategy.

Firm and dispatchable renewable energy projects integrate multiple generation sources and storage capacity to provide a more consistent electricity supply. Battery storage can also help utilities manage fluctuations in generation and demand as the share of renewable power in India’s electricity mix increases.

NHPC, a Navratna public sector enterprise under the Ministry of Power, has traditionally focused on hydropower and has expanded into solar and wind energy. Essar said its experience in the energy sector and focus on emerging technologies would support its participation in India’s expanding electricity market. India is targeting 500 GW of non-fossil fuel-based installed electricity capacity by 2030, requiring investment in renewable generation, storage and transmission infrastructure.