Essar Power to invest ₹4,500 crore in Andhra Pradesh renewable project
The 300 MW project will integrate solar, wind, and battery storage through a Power Purchase Agreement with NHPC Limited.
Essar Renewables Limited (ERL) will invest approximately ₹4,500 crore to develop a 300 MW renewable energy project in Andhra Pradesh, according to Business Today. The company has signed a Power Purchase Agreement (PPA) with NHPC Limited for the venture.
The project will use the Firm and Dispatchable Renewable Energy (FDRE) model to provide reliable power. It will combine solar and wind energy with Battery Energy Storage Systems (BESS) to ensure a steady electricity supply.
Essar Power CEO Ankur Kumar said the 300 MW FDRE project with NHPC is a significant milestone that will bolster the company's renewable energy holdings. He noted that the firm aims to develop a portfolio involving solar, wind, and battery storage.
The investment is part of a broader strategy to create a 5 GW energy portfolio that includes gas-based, thermal, and renewable power generation. Essar Renewables has previously secured renewable energy tenders from SJVN and NHPC, totaling about 1 GW in awarded capacity.
Srinivasan Vaidyanathan, Operating Partner - Infrastructure at Essar Group, said building a sustainable and reliable energy ecosystem is vital as India moves towards the vision of Viksit Bharat. He stated that the company's focus on new technologies would assist its participation in the next stage of energy growth in India.
The company stated its strategy involves merging conventional power with clean energy solutions to support grid reliability and energy security as demand increases in urban and industrial centres.