Essar Power will invest around Rs. 45 bn in a 300 MW renewable energy project in Andhra Pradesh after signing a power purchase agreement with state-run NHPC. The project will combine solar and wind generation with battery energy storage systems to provide firm and dispatchable electricity.

Essar Renewables, the renewable energy arm of Essar Power, signed the agreement for the project with NHPC. The arrangement is intended to supply electricity according to contracted schedules, using storage capacity to manage fluctuations in renewable generation and support more reliable power delivery.

The investment forms part of Essar Power’s plan to build an energy portfolio of around 5 GW across renewable, thermal and gas-based generation. The company said its strategy combines conventional power generation with newer clean energy technologies as it expands its presence in India’s changing electricity market.

The project is being developed as India seeks to meet rising electricity demand while increasing the contribution of renewable sources. Unlike standalone solar or wind facilities, firm and dispatchable renewable energy projects integrate multiple generation sources and storage so that electricity can be supplied more consistently.

Battery storage has become an important component of India’s energy transition as the share of renewable power in the electricity mix increases. NHPC, a Navratna public sector enterprise under the Ministry of Power, has traditionally focused on hydropower but has expanded into solar and wind projects. India is targeting 500 GW of non-fossil fuel-based installed electricity capacity by 2030, creating demand for investment in generation, storage and transmission infrastructure.