Essar to invest Rs 4,500 crore in 300 MW renewable energy project with NHPC

Essar Power will invest around Rs 4,500 crore in a 300 MW renewable energy project in Andhra Pradesh, as the group looks to expand its presence in the clean energy business while retaining conventional power generation as part of its broader energy strategy. Essar Renewables Limited (ERL), the renewable energy arm of Essar Power, has signed a power purchase agreement (PPA) with state-run NHPC Limited for the firm and dispatchable renewable energy (FDRE) project. The project will combine solar and wind power generation with battery energy storage systems (BESS) to supply reliable and dispatchable electricity.

The investment is part of Essar Power's ambition to build an energy portfolio of around 5 GW spanning renewable, thermal and gas-based power generation. "At Essar Renewables, we are focused on building a strong portfolio across solar, wind and Battery Energy Storage Systems, tapping into the growing opportunities in India's renewable energy sector," Ankur Kumar, CEO of Essar Power, said. "The 300 MW FDRE project with NHPC is an important milestone in this journey, strengthening our portfolio and advancing our ambition to build a scalable renewable energy business," he added. The project comes at a time when India's power sector is grappling with the challenge of meeting rising electricity demand while ensuring round-the-clock power supply from renewable sources.