Hexa Climate has signed a Power Purchase Agreement (PPA) with NHPC for a 160 MW Firm and Dispatchable Renewable Energy (FDRE) project, marking a significant milestone in the deployment of round-the-clock renewable power solutions in India.
The project comprises 160 MW of contracted capacity, including an 80 MW base allocation and an additional 80 MW green-shoe allocation. Designed to deliver clean power on demand, the FDRE project is expected to support grid reliability while reducing dependence on conventional fossil fuel-based generation.
According to the company, the project will operate at an annual capacity utilization factor (CUF) of 65%, a level that distinguishes it from conventional renewable energy projects and enables it to qualify as firm renewable power. The ability to provide reliable and dispatchable clean energy is becoming increasingly important as India’s electricity system integrates larger volumes of renewable generation.
The project has secured a tariff of ₹4.33 per kWh through a competitive bidding process. The tariff has been adopted by both the Central Electricity Regulatory Commission (CERC) and the Punjab State Electricity Regulatory Commission (PSERC), providing regulatory support for the project’s long-term implementation.
Under the arrangement, NHPC will serve as the intermediary procurer, while Punjab State Power Corporation Limited (PSPCL) will act as the end distribution utility procuring power from the project. The PPA has been signed for a period of 25 years and will be connected through the Inter-State Transmission System (ISTS).
Hexa Climate estimates that the project will help avoid approximately 747,000 tonnes of carbon dioxide emissions annually. Over the project’s operational life, the cumulative emissions reduction is expected to reach nearly 18.7 million tonnes, highlighting its potential contribution to India’s climate and clean energy goals.
The agreement reflects growing momentum in the FDRE segment, which combines renewable energy generation with the flexibility required to provide dependable power supply. Industry observers view such projects as critical to supporting India’s energy transition, improving grid stability and enabling greater integration of renewable energy into the national power system.
The signing of the PPA represents a significant step forward for Hexa Climate as it expands its presence in India’s evolving renewable energy market and contributes to the development of reliable, low-carbon power infrastructure.
