India’s clean energy transition is entering a new phase where reliability matters as much as renewable capacity. In a significant development for the country’s evolving energy landscape, Hexa Climate has signed a Power Purchase Agreement (PPA) with NHPC for a 160 MW Firm and Dispatchable Renewable Energy (FDRE) project, designed to deliver round-the-clock renewable electricity while strengthening grid stability.
The project includes 80 MW of base capacity and an additional 80 MW under the greenshoe option, and will supply renewable power to Punjab State Power Corporation Limited (PSPCL) through the interstate transmission network under a long-term 25-year agreement.
Why This Project Matters
India has rapidly expanded its solar and wind capacity over the past decade, but one of the biggest challenges facing the renewable energy sector remains intermittency. Solar power is available only during daylight hours, while wind generation fluctuates based on weather conditions.
Firm and Dispatchable Renewable Energy (FDRE) projects are increasingly being viewed as the next step in India’s clean energy journey because they combine renewable generation with advanced balancing mechanisms to provide power when it is needed—not just when the sun shines or the wind blows.
By ensuring a consistent supply of clean electricity, FDRE projects help utilities reduce dependence on fossil-fuel-based power while supporting grid reliability and energy security.
Competitive Tariff Reflects Renewable Energy Maturity
The project was awarded through a competitive bidding process at a tariff of ₹4.33 per kWh, highlighting the growing cost competitiveness of advanced renewable energy solutions.
The project will operate at an estimated 65% annual Capacity Utilisation Factor (CUF), significantly higher than conventional standalone solar or wind projects. This allows utilities to secure dependable renewable power while improving overall system efficiency.
Both the Central Electricity Regulatory Commission (CERC) and the Punjab State Electricity Regulatory Commission (PSERC) have adopted the tariff and project framework, providing regulatory clarity for long-term implementation.
Significant Climate Impact
Beyond strengthening India’s renewable energy infrastructure, the project is expected to deliver substantial environmental benefits.
According to Hexa Climate, the project could avoid approximately:
🌱 747,000 tonnes of CO₂ emissions every year
🌱 18.7 million tonnes of CO₂ emissions over the project’s lifetime
To put that into perspective, the avoided emissions are equivalent to removing hundreds of thousands of fossil-fuel-powered vehicles from the road annually or significantly reducing coal-based electricity generation.
As India pursues its net-zero ambitions and expands clean energy deployment, projects capable of delivering both emissions reductions and reliable power are becoming increasingly important.
Strengthening Hexa Climate’s Renewable Energy Portfolio
The NHPC agreement comes shortly after a major expansion move by Hexa Climate.
In May 2026, Hexa Climate Solutions completed the acquisition of Fortum’s renewable energy assets in India, including a 100% stake in Fortum India and its 206 MW commercial and industrial renewable energy portfolio.
The acquisition significantly expanded Hexa Climate’s presence in the Indian renewable energy market and strengthened its position across the clean energy value chain.
The Rise of Round-the-Clock Renewable Energy
The Hexa-NHPC partnership reflects a broader trend across India’s energy sector. Utilities, regulators, and large power consumers are increasingly seeking renewable energy solutions that can provide predictable and dispatchable power rather than intermittent generation alone.
As battery storage, hybrid renewable systems, and FDRE projects become more widespread, the industry is moving beyond capacity additions toward building a more resilient and reliable clean energy ecosystem.
For India, this shift could play a crucial role in balancing rising electricity demand, supporting industrial growth, and accelerating decarbonisation while ensuring energy security.
With a long-term power supply agreement, strong regulatory backing, and significant carbon reduction potential, the Hexa Climate-NHPC project represents another important milestone in India’s transition toward a low-carbon, round-the-clock renewable energy future.
