ACME Solar has signed a power purchase agreement with the Solar Energy Corporation of India to supply 300 MW of renewable power during peak evening hours. Priced at Rs 6 per unit, the contract includes battery storage to ensure energy supply when solar output is unavailable. This addition strengthens the company’s project pipeline, which now totals 5,380 MW.
ACME Solar has formalised a power purchase agreement with the Solar Energy Corporation of India to supply 300 MW of assured peak power. This project, which will be executed through the subsidiary ACME Greentech Twenty Private Limited, is designed to help stabilize the national electricity grid by providing power during high-demand evening and night-time hours. The agreement is set at a fixed tariff of Rs 6 per unit.
Moving Beyond Standard Solar
Unlike traditional solar projects that only generate electricity when the sun is shining, this deal falls under the Firm and Dispatchable Renewable Energy framework. To meet the requirements of this framework, ACME Solar must provide 4 MWh of energy for every megawatt of capacity for four hours every day, even when solar power is not available. To achieve this, the company will integrate large-scale battery energy storage systems with its solar generation infrastructure. This transition to a hybrid solar-plus-storage model allows the company to move into a higher-value segment of the renewable energy market, as grid operators are increasingly willing to pay a premium for reliable, non-intermittent power.
Scaling Renewable Capacity
With this new contract, ACME Solar’s under-construction portfolio has reached 4,310 MW, contributing to a total contracted pipeline of 5,380 MW. The ability to secure large-scale projects under the FDRE framework suggests that the company is successfully diversifying its capabilities beyond utility-scale solar farms. By maintaining a minimum monthly availability of 90%, the project aims to serve as a reliable source of power for the grid.
Operational Risks and Monitorables
While the shift to dispatchable energy offers a significant opportunity for market expansion, it also introduces specific operational risks. The technical complexity of integrating battery storage systems is higher than that of simple solar installations, involving potential cost pressures related to battery technology, equipment sourcing, and long-term maintenance. Additionally, the project's profitability will depend on the company’s ability to manage costs effectively while meeting strict supply availability requirements set by the regulator. Investors may look for updates on project execution timelines, battery procurement costs, and the company’s ability to maintain high availability standards as the project moves toward commissioning in October 2026.