Essar Power to invest Rs 4,500 crore in Andhra Pradesh renewable project
The 300 MW project will combine solar, wind, and battery storage to provide dispatchable energy.
Essar Power plans to invest approximately Rs 4,500 crore in a 300 MW renewable energy project in Andhra Pradesh, according to The Indian Express. The company's renewable energy unit, Essar Renewables Ltd (ERL), has signed a power purchase agreement with state-owned NHPC Ltd to develop the site.
The project will use a mix of wind and solar power alongside Battery Energy Storage Systems (BESS). This combination aims to provide firm and dispatchable renewable energy to the grid.
The investment is part of a broader strategy by Essar Power to create a 5 GW diversified energy portfolio. This portfolio will include gas-based, thermal, and renewable power generation.
Ankur Kumar, Chief Executive Officer (CEO) of Essar Power, stated that the deal with NHPC marks a significant step in growing a scalable renewable business. He noted that the company is concentrating on solar, wind, and battery storage technologies.
Srinivasan Vaidyanathan, Operating Partner, Infrastructure at Essar Group, said the company's focus on new technologies provides a foundation to participate in India's energy growth. The company added that the project supports energy security and grid reliability as electricity demand rises.
Essar Renewables has previously secured tenders from SJVN and NHPC, with a total awarded capacity of about 1 GW.