NHPC and Essar Power’s renewable energy unit will develop a 300 MW green energy project in southern Andhra Pradesh, with the project combining solar, wind and battery energy storage systems. Essar Power will invest about Rs. 45 bn in the project, equivalent to approximately $475 mn.

The project is intended to supply renewable power while combining generation from multiple sources with storage capacity. The companies have not provided a commissioning timeline or details on the planned allocation between solar, wind and battery installations.

NHPC, India’s largest hydropower producer, has been expanding its presence in solar and wind energy. The partnership broadens its involvement in renewable generation beyond its traditional hydropower operations and adds a project in one of India’s key southern power markets.

For Essar Power, the development forms part of a strategy to build a diversified 5 GW portfolio spanning renewable, thermal and gas-based power generation. The company’s renewable energy unit is leading the project in partnership with NHPC, while the parent group is providing the stated investment.

The development supports India’s efforts to increase renewable energy capacity and improve grid reliability as electricity demand rises. It also aligns with the country’s target of reaching 500 GW of renewable energy capacity by 2030, although the companies have not stated how much of the project’s output will be allocated to the grid or specific customers.