ACME Solar Holdings has secured ₹2,646.64 crore in long-term funding from REC Ltd for its 450MW/1800MWh Firm and Dispatchable Renewable Energy project. The deal provides capital certainty for future growth.
ACME Solar Secures ₹2,646 Crore REC Funding for FDRE Project
Funding Amount: ₹2,646.64 crore
Project Capacity: 450MW / 1800MWh FDRE with BESS
Reader Takeaway: Financing secured for new project; execution of large pipeline remains key.
What just happened
ACME Solar Holdings Ltd announced it has secured ₹2,646.64 crore in long-term project funding from REC Ltd. This financing will support its 450MW capacity and 1800MWh Battery Energy Storage System (BESS) project, known as ACME Greentech Seventh. The loan has a tenure of 20 years.
The project is backed by a 25-year Power Purchase Agreement (PPA) with SJVN Limited, at a tariff of ₹6.74 per unit, offering significant revenue visibility.
Why this matters
This funding provides crucial capital certainty for ACME Solar's development pipeline. The focus on Firm and Dispatchable Renewable Energy (FDRE) coupled with BESS integration signifies a strategic shift towards higher-value, more predictable energy solutions, differentiating it from traditional variable renewable energy projects.
The backstory
ACME Solar manages a total renewable portfolio of 8,070 MW. This includes 2,990 MW of operational capacity with approximately 3.3 GWh of BESS. The company has a substantial pipeline of 5,080 MW under construction, including about 18 GWh of BESS installations, and an additional 3,580 MW of PPA-signed capacity also under construction.
What changes now
The financial closure with REC Ltd de-risks the Greentech Seventh project development. It allows the company to proceed with construction and energization, contributing to its expanding portfolio of BESS-integrated renewable energy assets.
Risks to watch
The company has a large under-construction pipeline of 5,080 MW. Investors need to monitor project commissioning timelines and ACME Solar's ability to maintain stable margins across this extensive development, alongside the successful deployment of its significant BESS capacity.
Context metrics (time-bound)
- Portfolio: 8,070 MW total renewable capacity
- Operational: 2,990 MW (with ~3.3 GWh BESS)
- Under Construction: 5,080 MW (including ~18 GWh BESS)
- PPA Signed Under Construction: 3,580 MW
- New Project Funding: ₹2,646.64 crore from REC Ltd
- Project Tariff: ₹6.74 per unit
- PPA Duration: 25 Years
- Loan Tenure: 20 Years
What to track next
Investors should closely watch the progress of ACME Solar's under-construction projects, particularly their commissioning timelines and the successful integration of BESS. Monitoring margin stability and the company's ability to secure further financing for its pipeline will also be critical.