ACME Solar Secures ₹2,647 Crore REC Funding for Major Power Project

Key Takeaways

ACME Solar Holdings has secured ₹2,646.6 crore in project financing from REC for a 450 MW/1,800 MWh power project.
The company will utilize the funds for a solar generation and battery storage project, enhancing energy reliability.
The generated electricity will be sold to SJVN under a 25-year agreement at ₹6.74 per unit, ensuring steady revenue.

Financing Secured for Renewable Energy Initiative

ACME Solar Holdings announced it has obtained long-term financing amounting to ₹2,646.6 crore from the state-run Rural Electrification Corporation (REC). This funding will aid in the development of the ACME Greentech Seventh Assured Peak Power Project, which features a capacity of 450 MW and an impressive 1,800 MWh of energy storage.

The primary goal of this project is to integrate solar energy generation with battery storage technology, allowing for the delivery of reliable, dispatchable power. According to ACME Solar, this approach significantly enhances supply predictability, meeting a crucial demand for grid operators, especially as India continues to expand its renewable energy landscape.

As indicated, REC will act as the sole lender for this initiative, providing financial backing for a 20-year period. The investment aims to ensure that the intermittent nature of renewable sources does not compromise the reliability of electricity supply.

In terms of revenue generation, the electricity produced from this project will be supplied to SJVN, a state-owned enterprise, under a power purchase agreement lasting 25 years. The agreed tariff stands at ₹6.74 per unit, which offers long-term visibility into cash flow for ACME Solar.

The company is recognized as an integrated player in the renewable energy sector, boasting a substantial portfolio of 8,070 MW, encompassing solar, wind, and hybrid projects among others. With this latest financing, ACME Solar looks to cement its role in promoting sustainable energy solutions while meeting increasing energy demands in India.

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