Two years after winning NHPC's 300 MW renewable energy project, Essar Renewables Limited (ERL), the renewable energy arm of Essar Power, has entered into a Power Purchase Agreement (PPA) with NHPC. Under the agreement, the company will develop the project in Andhra Pradesh. The project is part of Essar Power's goal to build a diversified energy portfolio of approximately 5 GW, spanning renewable, thermal and gas-based power generation. Essar Power will invest approximately ₹4,500 crore in the project, which will integrate solar, wind and Battery Energy Storage Systems (BESS) to deliver reliable and dispatchable renewable power. About the Tender NHPC awarded bids for its 1.2 GW Firm and Dispatchable Renewable Energy (FDRE) project under Tranche II. It allocated the capacity to five successful bidders: Essar Renewables, Juniper Green Energy, Serentica Renewables, Hexa Climate Solutions and Avaada Energy. According to the tender results, NHPC allocated capacities of 300 MW, 200 MW and 150 MW to Essar Renewables, Juniper Green Energy and Serentica Renewables, respectively. These companies secured the projects at a quoted tariff of ₹4.37 per kWh. Hexa Climate Solutions won an 80 MW project at the same tariff, while Avaada Energy secured 470 MW at a quoted tariff of ₹4.38 per kWh. The successful bidders are expected to set up Inter-State Transmission System (ISTS)-connected renewable energy projects to supply 1.2 GW of firm and dispatchable renewable energy (FDRE). They will supply power from ISTS-connected projects coupled with energy storage systems in India on a Build-Own-Operate (BOO) basis. Commenting on the development, Srinivasan Vaidyanathan, Operating Partner – Infrastructure, Essar Group, said, "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."