News Synopsis
PROJECT SNAPSHOT
Company: Essar Power
Planned Portfolio: 5 GW diversified energy capacity
Renewable Awards: 900 MW
BESS-linked FDRE Capacity: 300 MW
Focus Areas: Solar, wind, thermal, gas and BESS
States Involved: Gujarat, Maharashtra, Rajasthan, Andhra Pradesh, Assam, Karnataka
Essar Power, a veteran in Indian energy sector for over 25 years, is transitioning from traditional thermal focus to green energy powerhouse under the Essar 2.0 vision. It is managed by Essar Capital. The company is currently restructuring its assets to meet international net-zero targets.
The company is focused on building a diversified 5 GW energy portfolio. It includes renewable, thermal and gas-based power plants. It targets India's rising energy demand. The company is actively operating in renewable sector with a major focus on solar, wind and BESS.
By maintaining its traditional power base, the business is aiming for a stable, balanced way to grow its clean energy capacity. As one of India’s early private power producers, Essar Power is positioning itself to meet the nation's increasing energy needs as a new era of expansion. This is done by balancing traditional generation with the rapid shift towards sustainable, low-carbon energy solutions.
With over three decades of experience, Essar Power stands as a trailblazer in India’s private energy market. Over this period, the company has invested roughly ₹30,000 crore to develop and manage a portfolio exceeding 5 GW of power capacity and 464km transmission network. Essar Power currently operates 1.2 GW of base-load energy through its subsidiary, Essar Power Gujarat Limited (EPGL). This is generated by 2×600 MW thermal facility in Salaya, Gujarat, which runs on imported coal.
The plant is equipped with advanced sub-critical technology. It enables efficient, reliable and environmentally compliant operations. The complete capacity of Salaya plant is contracted under a long-term power purchase agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL). This facility provides approximately 5% of Gujarat's total energy requirement making it a key asset in the state’s power ecosystem.
Regarding green energy, Essar Power has won three significant central government contracts through NHPC and SJVN. These projects total 900 MW, which includes a 300 MW "Firm and Dispatchable Renewable Energy" (FDRE) setup that combines solar power, wind energy and battery storage.
Essar Power partners with several states like Maharashtra, Gujarat, Rajasthan, Andhra Pradesh, Assam and Karnataka. The company signs Memorandum of Understanding (MoU) with these state governments for development of renewable power projects including BESS.
Over India’s industrial and urban centers, the electricity demand continues to grow. For this reason, Essar Power’s strategy remains centered on reliable baseload generation. When the renewable capacity expands, this strategy plays main role in grid stability. This approach supports the national vision and drives India’s target of achieving 500 GW of renewable energy capacity by 2030.