ACME Solar’s subsidiary has obtained ₹2,646.64 crore in long-term funding from REC Ltd to build a 450 MW renewable energy project. The venture, which includes battery storage, is backed by a 25-year agreement to supply peak power to SJVN Ltd.
ACME Solar, through its subsidiary ACME Greentech Seventh, has finalized a ₹2,646.64 crore debt agreement with the state-owned lender REC Ltd. This capital is earmarked for developing a 450 MW Firm and Dispatchable Renewable Energy project. This type of project is designed to provide electricity during specific peak demand hours, rather than just whenever the sun is shining, by combining solar generation with large-scale battery storage systems.
Project Economics and Structure
The financing from REC Ltd comes with a 20-year repayment schedule, matching the long-term nature of the project. A key factor providing stability to this investment is the 25-year Power Purchase Agreement signed with SJVN Ltd. Under this contract, the company will supply power at a fixed rate of ₹6.74 per unit. This tariff is significantly higher than standard solar rates, reflecting the added cost and complexity of integrating battery storage to ensure power is available when it is needed most, particularly during non-solar hours.
Capacity and Strategic Focus
The project will be located in Rajasthan, a region known for high solar potential, and will connect to the Inter-State Transmission System. The company has committed to a strict availability target of 90% on both a monthly and annual basis. This performance metric is critical, as failure to meet these supply levels can lead to penalties under the agreement with SJVN.
ACME Solar currently operates a diverse portfolio of 2,990 MW of renewable assets. Beyond this new project, the company is managing a construction pipeline of 5,080 MW. A major part of the company's growth strategy involves moving toward storage-integrated solutions. The company is currently developing approximately 18 GWh of battery energy storage capacity to complement its existing operational portfolio.
Investor Monitorables
For investors, the financial health of this project depends heavily on the successful execution of the battery storage integration, which is more complex than traditional solar farm construction. While the long-term contract with SJVN provides revenue visibility, the company’s ability to manage costs during the construction phase will be essential to maintaining profit margins. Investors should track the project's commissioning timeline, as delays in installing battery storage or grid connectivity could impact the company's debt-servicing ability and overall project returns. Future updates on the operational status of this site and the company’s broader progress on its 5,080 MW under-construction portfolio will be important for assessing the company’s financial trajectory.