NHPC and Essar Renewables, the renewable energy unit of Essar Power, will develop a 300 MW green energy project in southern Andhra Pradesh, with the parent company investing about Rs. 45 bn ($475 mn), according to the announcement. The partnership brings together a hydropower producer and a power company's renewable energy business for an integrated clean-energy development.

The project will combine solar and wind generation with battery energy storage systems. This configuration is intended to bring multiple renewable power sources into a single project while adding storage capacity to support the supply of electricity from those sources.

NHPC, India's largest hydropower producer, has been expanding its presence in solar and wind energy. The Andhra Pradesh project will extend that activity into a combined renewable generation and storage development, although the announcement did not provide a construction schedule or commissioning date.

For Essar Power, the project forms part of a strategy to build a diversified 5 GW portfolio spanning renewable, thermal and gas-based power generation. The development will add to the renewable segment of that planned portfolio while allowing the group's power activities to cover several generation technologies.

The project also supports India's efforts to expand renewable energy capacity and strengthen grid reliability as electricity demand rises. It aligns with the country's target of reaching 500 GW of renewable energy capacity by 2030. The announcement did not disclose the project's expected generation, storage duration, financing structure or implementation timeline.