ACME Secures $363 Million from REC for Renewable Energy Initiative

Key Takeaways

ACME Hybrid Urja secures Rs31.84bn ($363m) funding from REC for a 280MW renewable energy project.
The project includes solar power and a battery energy storage system, enhancing energy supply reliability.
This financing underlines growing investor confidence in India’s renewable energy sector and supports national energy transition goals.

Project Financing and Overview

ACME Hybrid Urja, part of ACME Solar Holding, has successfully obtained long-term financing of Rs31.84 billion ($363 million) from REC, an infrastructure finance company. This funding will be utilized for developing a 280MW firm and dispatchable renewable energy (FDRE) project. REC will serve as the exclusive lender, offering an 18-year financing term.

This marks the third time REC has financed ACME Solar’s FDRE projects, which also includes previous investments in two other projects with a total capacity of 570MW. The new project features a 25-year power purchase agreement with NHPC, a state-owned utility, at a rate of Rs4.64 per unit.

Technological Integration and Environmental Impact

The FDRE project will incorporate several renewable technologies, primarily solar and a battery energy storage system (BESS), to improve energy supply predictability and dispatchability. It aims to reach a minimum annual capacity utilization factor (CUF) of 40%, ensuring 90% availability during peak hours each month.

The project is poised to significantly reduce greenhouse gas (GHG) emissions and contribute to India’s energy transition objectives. This aligns with the country’s increasing commitment to clean energy solutions and its ambitious renewable energy targets.

Future Developments

ACME Solar has also entered into battery energy storage purchase agreements for two standalone BESS projects in Andhra Pradesh, amounting to a capacity of 275MW/550 megawatt-hours. In July 2023, ACME Group announced the acquisition of Rs40 billion in debt for green hydrogen and ammonia projects in Oman, further solidifying its position in the renewable energy sector.

This strategic financing by REC not only highlights investor confidence in India’s renewable energy market but also strengthens efforts towards expanding sustainable energy initiatives across the nation.

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