Essar Power will invest around ₹4,500 crore to develop a 300 MW renewable energy project in Andhra Pradesh. The project will combine solar and wind power with battery energy storage to provide firm and dispatchable renewable electricity.
New Delhi, November 4 — Essar Power will invest around ₹4,500 crore to develop a 300 MW renewable energy project in Andhra Pradesh, strengthening the company’s presence in India’s rapidly expanding clean-energy sector.
The investment follows a power purchase agreement (PPA) signed between Essar Power’s renewable energy arm, Essar Renewables Ltd (ERL), and state-owned NHPC Ltd.
The project will use a combination of solar and wind power generation supported by Battery Energy Storage Systems (BESS).
This combination will allow the project to provide firm and dispatchable renewable energy, addressing one of the biggest challenges associated with solar and wind power — their intermittent nature.
Firm and Dispatchable Renewable Energy (FDRE) projects combine different renewable generation sources with energy storage, enabling a more predictable electricity supply compared with standalone solar or wind projects.
The latest project is part of Essar Power’s broader plan to build a diversified energy portfolio of around 5 GW across renewable, thermal and gas-based power generation.
Srinivasan Vaidyanathan, Operating Partner – Infrastructure at Essar Group, said building a reliable and sustainable energy ecosystem will be critical as India advances towards its Viksit Bharat vision.
Meanwhile, Essar Power CEO Ankur Kumar said the 300 MW project with NHPC represents an important milestone in the company’s strategy to build a scalable renewable energy business.
Essar Renewables has already secured three major renewable energy tenders from NHPC and SJVN, with a combined awarded capacity of approximately 1 GW.
NHPC, a Navratna public sector enterprise under the Ministry of Power, is India’s largest hydropower development organisation and has expanded into solar and wind energy as part of its renewable portfolio.
The investment comes as India continues to expand clean-energy capacity while focusing increasingly on grid stability and energy storage.
Rising electricity demand from industrial and urban centres is creating the need for power-generation systems capable of delivering reliable electricity even when solar or wind generation fluctuates.
India has set a target of achieving 500 GW of non-fossil fuel-based installed electricity capacity by 2030.
Storage-backed renewable projects such as Essar’s proposed Andhra Pradesh facility are expected to play an important role in integrating a larger share of variable renewable power into the national electricity grid.
