ACME Solar Advances Rajasthan BESS Project: Phase IV Commissioning Nears, Total Capacity Hits 133 MW

ACME Solar Holdings Limited has announced that Phase IV of its Battery Energy Storage System (BESS) project in Rajasthan is scheduled for commercial operation on April 3, 2026. This next phase will add 33.333 MW of capacity and 160.48 MWh of energy storage. Once operational, the project's total capacity will reach 133.336 MW and 641.980 MWh, representing approximately 44% of the total planned 300 MW / 1409.34 MWh BESS capacity for the site. This development marks continued progress in the company's expansion of vital energy storage infrastructure.

Why It Matters

Battery Energy Storage Systems (BESS) are critical for India's transition to renewable energy. These systems help stabilize the grid by storing excess solar and wind power and releasing it during peak demand or when generation is low. This enhanced storage capacity ensures a more reliable supply of renewable energy, reducing reliance on fossil fuels and improving overall grid stability.

ACME's Wider Energy Storage Strategy

ACME Solar is a significant player in India's renewable energy sector. The company focuses on integrated solutions, including solar, wind, and increasingly, BESS and Firm and Dispatchable Renewable Energy (FDRE) projects. ACME aims to reach 10 GW of renewable capacity by FY2030. The Rajasthan project is part of a broader BESS expansion plan, with ACME targeting around 17 GWh of BESS installations across various states. The company has previously commissioned other BESS phases and secured agreements, such as the BESPA with NHPC for 275 MW/550 MWh. These BESS assets are designed to operate initially on a merchant basis, leveraging price differences between peak and non-peak hours, before potential integration with FDRE projects under long-term PPAs.

Impact of the Expansion

With the upcoming commissioning, shareholders will see an increase in ACME Solar's operational BESS capacity, moving the project closer to full completion. This expansion bolsters ACME Solar's position in the rapidly growing energy storage market. The company will be better equipped to manage grid intermittency and offer firm power solutions.

Key Risks and Challenges

ACME Solar faces several notable challenges. The company received a GST demand notice for approximately ₹149.73 crore, which it plans to contest, though no immediate business impact is expected. Separately, a Supreme Court case is underway concerning ACME's 1200 MW solar projects and transmission line. This case challenges a committee's decision on overhead lines due to Great Indian Bustard habitat concerns, which could potentially obstruct power generation. Financially, ACME Solar operates with high leverage, reporting a Debt to EBITDA ratio of 6.00 times as of March 2026, and a Return on Capital Employed (ROCE) of 8.52%. Concerns also persist regarding its valuation and a reduction in institutional investor stakes.

Competitive Landscape

ACME Solar is navigating a rapidly expanding BESS sector. Major competitors include Tata Power, which is integrating BESS into its strategy with projects like its 100 MW solar + 120 MWh BESS in Mumbai. JSW Energy plans substantial storage capacity by 2030 and is already constructing a 1.0 GWh BESS project. Vikram Solar is also investing heavily in BESS manufacturing capabilities.

Financial Snapshot

ACME Solar's revenue for the six months ending March 2026 grew by 58.49% to ₹964.54 crores, with Profit After Tax (PAT) rising 68.07% to ₹225.65 crores. However, the company's Debt to EBITDA ratio stood at 6.00 times as of March 2026, and its ROCE for the same period was 8.52%.

Investor Outlook

Investors will closely monitor the full commissioning of the Rajasthan BESS project and its impact on revenue. Future progress on debt reduction and improvements in financial metrics like ROCE will be key indicators. The outcomes of the GST demand notice and the Supreme Court case regarding transmission lines are also critical to track. ACME's success in executing its overall BESS and FDRE project pipeline will be closely watched.