Essar Renewables signs 300 MW FDRE deal with NHPC, to invest ₹4,500 crore in Andhra Pradesh
Synopsis
Essar Renewables has locked in a Power Purchase Agreement with NHPC for a ₹4,500 crore, 300 MW firm and dispatchable renewable project in Andhra Pradesh — blending solar, wind, and battery storage to deliver schedulable clean power. It is a concrete marker of Essar Power's 5 GW portfolio ambition and the growing role of hybrid FDRE models in India's grid stability strategy.
Key Takeaways
Essar Renewables Limited signed a PPA with NHPC Limited for a 300 MW FDRE project in Andhra Pradesh on 4 November 2026 .
Essar Power will invest approximately ₹4,500 crore , integrating solar, wind, and Battery Energy Storage Systems (BESS) .
The project is part of Essar Power's strategy to develop a diversified energy portfolio of approximately 5 GW .
NHPC Limited is a Navratna enterprise under the Ministry of Power and India's largest hydropower development organisation.
The deal supports India's target of achieving 500 GW of renewable energy capacity by 2030 .
Essar Renewables Limited (ERL), the renewable energy arm of Essar Power, has signed a Power Purchase Agreement (PPA) with NHPC Limited for a 300 MW Firm and Dispatchable Renewable Energy (FDRE) project in Andhra Pradesh. The deal, announced on 4 November 2026, involves an investment of approximately ₹4,500 crore and marks a significant step in Essar Power's push to build a diversified clean energy portfolio of around 5 GW.
Project Structure and Technology Mix
The 300 MW FDRE project will integrate solar, wind, and Battery Energy Storage Systems (BESS) to deliver reliable, dispatchable renewable power to the grid. The hybrid design is intended to address a longstanding challenge in India's renewable sector — the intermittency of solar and wind generation — by ensuring a firm, schedulable power output. This model is increasingly favoured by central utilities seeking grid stability as the country scales up variable renewables.
What Essar and NHPC Said
Srinivasan Vaidyanathan, Operating Partner – Infrastructure at Essar Group, said: 'As India advances towards the vision of Viksit Bharat, building a reliable and sustainable energy ecosystem will be critical to supporting its ambitions. Essar's experience in the energy sector, combined with our focus on new technologies and emerging opportunities, gives us a strong foundation to participate in this next phase of India's energy growth.'
Ankur Kumar, CEO of Essar Power, added: '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. 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.'
About the Partners
NHPC Limited, a Navratna enterprise under the Ministry of Power, Government of India, is India's largest hydropower development organisation. Over recent years, NHPC has diversified into solar and wind energy, broadening its footprint across the renewable sector. Its partnership with a private developer like Essar reflects the Centre's push to meet India's ambitious clean energy targets through public-private collaboration.
Essar Power, meanwhile, describes its strategy as a balanced approach combining renewables, gas-based generation, and conventional thermal capacity — positioning itself to serve both baseload demand and peak-hour requirements as the energy transition unfolds.
Broader Energy Context
This agreement comes amid accelerating momentum in India's clean energy build-out. India has committed to achieving 500 GW of renewable energy capacity by 2030, and FDRE projects — which guarantee dispatchable output — are seen as a critical bridge between intermittent renewables and grid reliability. The Andhra Pradesh project aligns with this national priority, adding firm capacity to a state that has emerged as a major hub for utility-scale renewable development. Notably, the ₹4,500 crore outlay also signals growing private-sector confidence in India's renewable procurement pipeline. How quickly Essar and NHPC move from agreement to commissioning will be closely watched by the sector.
Point of View
Which mandate dispatchable output backed by storage, are emerging as the preferred procurement model for central utilities that need firm capacity, not just installed megawatts. India has consistently overpromised on renewable capacity targets while underdelivering on grid integration — FDRE is the architecture that could close that gap. The real question is execution timelines; battery storage procurement and grid interconnection in Andhra Pradesh have historically lagged project announcements. If Essar delivers on schedule, it sets a template; if it slips, it underlines the gap between PPA signings and actual electrons on the grid.
NationPress
4 Nov 2026
Frequently Asked Questions
What is the Essar Renewables NHPC FDRE project?
It is a 300 MW Firm and Dispatchable Renewable Energy project to be developed in Andhra Pradesh, following a Power Purchase Agreement signed between Essar Renewables Limited and NHPC Limited. The project will integrate solar, wind, and Battery Energy Storage Systems, with Essar Power investing around ₹4,500 crore.
What is Firm and Dispatchable Renewable Energy (FDRE)?
FDRE refers to renewable energy projects that can guarantee a scheduled, reliable power output — unlike conventional solar or wind plants, which generate power only when sunlight or wind is available. FDRE projects typically combine multiple generation sources with battery storage to deliver power on demand, improving grid stability.
What is NHPC Limited and why is it involved?
NHPC Limited is a Navratna enterprise of the Government of India under the Ministry of Power and is India's largest hydropower development organisation. It has diversified into solar and wind energy in recent years and enters this PPA as the offtaker, purchasing the power generated by Essar's 300 MW project.
How does this project fit India's renewable energy goals?
India has set a target of 500 GW of renewable energy capacity by 2030. The 300 MW Andhra Pradesh FDRE project contributes firm, dispatchable capacity to that target, addressing the intermittency challenge that has been a key concern as India scales up variable renewables.
What is Essar Power's broader energy strategy?
Essar Power is building a diversified energy portfolio of approximately 5 GW, combining renewable energy — solar, wind, and battery storage — with thermal and gas-based generation. The company describes this as a balanced approach designed to support energy security and grid reliability during India's transition to a lower-carbon energy mix.
