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NHPC Strengthens Clean Energy Portfolio with 40-Year Power Supply Agreement for 1,720 MW Kamala Hydropower Project

NHPC Limited has signed a long-term Power Purchase Agreement (PPA) with Chhattisgarh State Power Distribution Company Limited (CSPDCL) for the supply of electricity from the upcoming 1,720 MW Kamala Hydroelectric Project in Arunachal Pradesh. The agreement, signed in Raipur, will remain effective for 40 years from the project's Commercial Operation Date (COD), reinforcing NHPC's strategy of securing long-term power offtake for its large hydropower assets while supporting India's transition towards cleaner energy sources.

The agreement is expected to provide Chhattisgarh with a reliable source of renewable electricity capable of meeting growing demand while improving grid stability. Unlike intermittent renewable sources such as solar and wind, hydropower offers dispatchable generation, enabling utilities to balance electricity supply during peak demand and support greater integration of renewable energy into the national grid. The partnership also contributes to India's broader objective of expanding non-fossil fuel-based electricity generation and strengthening long-term energy security.

Speaking on the development, Bhupender Gupta, Chairman and Managing Director of NHPC, said the agreement represents another significant milestone in the company's commitment to delivering dependable and sustainable hydropower. He noted that such long-duration PPAs not only strengthen energy security for states but also support India's renewable energy ambitions by ensuring access to clean, reliable electricity over several decades.

The agreement was formally signed by Ranjeet Thakur, General Manager (Commercial), NHPC, and V.K. Sai, Executive Director (Regulatory Affairs & Power Management), CSPDCL, in the presence of senior officials from both organisations. Long-term agreements of this nature also improve project bankability by providing revenue visibility, enabling developers to secure financing for large infrastructure projects with extended construction timelines.

The Kamala Hydroelectric Project has emerged as one of NHPC's key upcoming generation assets and has been attracting power procurement commitments from multiple utilities across the country. Earlier this month, NHPC signed a similar 40-year PPA with the Tripura State Electricity Corporation Limited (TSECL) for power from the same project. The company has also executed long-term agreements with Gujarat Urja Vikas Nigam Limited (GUVNL) for electricity from both the 1,720 MW Kamala Project and the 1,856 MW Sawalkot Hydroelectric Project in Jammu & Kashmir.

NHPC has further expanded its portfolio of long-term power supply agreements in recent months. These include a 40-year PPA with the New Delhi Municipal Council (NDMC) for power from the 800 MW Parbati-II Hydroelectric Station in Himachal Pradesh, as well as an agreement with Uttar Pradesh Power Corporation Limited (UPPCL) for electricity from the 260 MW Dulhasti Stage-II Hydroelectric Project in Jammu & Kashmir. Collectively, these agreements underline the growing demand among state utilities for firm, renewable hydropower to complement the rapid expansion of solar and wind capacity.

Beyond conventional hydropower, NHPC is also expanding into energy storage solutions. In June 2026, the company signed a memorandum of understanding with ONGC Green Limited to jointly explore the development of Pumped Storage Projects (PSPs) and other renewable energy ventures across India. Pumped hydro storage is expected to play a critical role in balancing the grid as India moves towards its target of 500 GW of non-fossil fuel electricity capacity by 2030, providing large-scale energy storage that can support round-the-clock renewable power availability.