Hexa Climate Signs 160 MW FDRE Power Purchase Agreement with NHPC

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 step toward strengthening India’s round-the-clock clean energy supply.

The project comprises 80 MW of base contracted capacity along with an additional 80 MW under the green-shoe option. Designed to provide reliable renewable power beyond daylight hours, the FDRE project will deliver clean electricity on demand, supporting grid stability and reducing dependence on conventional fossil fuel-based generation.

With an annual capacity utilization factor (CUF) of 65%, the project stands out among renewable energy assets, enabling it to qualify as firm and dispatchable power. The tariff for the project was discovered through a competitive bidding process at ₹4.33 per kWh and has received regulatory adoption from both the Central Electricity Regulatory Commission (CERC) and the Punjab State Electricity Regulatory Commission (PSERC).

The project will operate under a 25-year agreement and is connected through the Interstate Transmission System (ISTS). NHPC will serve as the intermediary procurer, while Punjab State Power Corporation Limited (PSPCL) will be the end distribution utility procuring the power.

According to Hexa Climate, the project is expected to avoid approximately 747,000 tonnes of carbon dioxide emissions annually, translating to nearly 18.7 million tonnes of avoided emissions over its operational lifetime. The environmental impact is comparable to removing around 160,000 cars from the road each year.

The company highlighted the regulatory approvals from both central and state authorities as a strong validation of the project’s commercial and operational viability. Hexa Climate also acknowledged NHPC for facilitating a collaborative procurement process and credited its internal teams for driving the project through regulatory, commercial, and execution milestones.

The agreement underscores the growing role of FDRE projects in India’s energy transition, providing dispatchable renewable power that can support energy security while accelerating decarbonization goals.