By Chaitanya | BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance
ACME Solar Holdings Limited, a prominent name in India’s renewable energy sector, has announced a significant financial milestone. Its wholly-owned subsidiary, ACME Hybrid Urja Private Limited, has successfully secured long-term project financing totalling ₹3,184 crore from REC Limited. This substantial funding is earmarked for the development and construction of a 280 MW Firm & Dispatchable Renewable Energy (FDRE) project, which has a crucial 25-year Power Purchase Agreement (PPA) with NHPC Limited, a leading hydropower company in India.
This latest financial infusion from REC Limited underscores their strong confidence in ACME Solar Holding Limited’s project execution capabilities and vision. Notably, REC Limited, a public infrastructure finance company, is serving as the sole lender for this 280 MW venture, providing an 18-year financing tenure. This marks the third time this year that REC Limited has financed ACME’s FDRE projects, previously supporting two other projects with a cumulative capacity of 570 MW. This consistent backing highlights the robust partnership between the two entities in advancing India’s green energy goals.
Project Highlights and Technical Details
The 280 MW FDRE project is designed to offer stable and reliable power through an innovative hybrid technology, combining solar power generation with a Battery Energy Storage System (BESS). This integration ensures that the project can provide power on demand, overcoming the intermittent nature of standalone renewable sources. The PPA with NHPC is set at an attractive tariff of ₹4.64 per unit, further solidifying the project’s financial viability. Furthermore, the project aims for a minimum Capacity Utilization Factor (CUF) of 40% annually, guaranteeing consistent power supply. It also promises an impressive 90% availability during peak hours each month, a critical feature for grid stability.
For a clearer overview of the project’s key financial and operational parameters, refer to the table below:
| Parameter | Details / Figures |
|---|---|
| Project Name | Hybrid Urja 280 MW FDRE Project |
| Parent Company | ACME Solar Holding Limited |
| Funding Institution | REC Limited (REC Ltd) |
| Funding Amount | ₹3,184 crore |
| Loan Tenure | 18 years |
| Project Capacity | 280 MW (Firm & Dispatchable Renewable Energy) |
| Power Purchase Agreement (PPA) | 25 years with NHPC |
| PPA Tariff | ₹4.64 per unit |
| Capacity Utilization Factor (CUF) | Minimum 40% annually |
| Peak Hour Availability | 90% monthly during peak hours |
| Previous REC FDRE Financing Capacity (2025) | 570 MW (two earlier projects) |
ACME Solar Holdings: Expanding Green Footprint
This project is a key addition to ACME Solar Holdings’ rapidly expanding portfolio. By mid-2025, ACME anticipates its total capacity to reach approximately 6.97 GW, encompassing a diversified mix of solar, wind, hybrid, and FDRE projects. While around 2,890 MW (sources indicate between 2,826 MW and 2,890 MW) is expected to be operational, a significant 4,080 MW, along with 550 MWh of standalone BESS capacity, remains under various stages of construction. This aggressive expansion strategy solidifies ACME Solar’s position as a leading independent power producer in India.
The announcement on August 13, 2025, was well-received by the market, with ACME Solar shares gaining approximately 2% on the National Stock Exchange (NSE), where the company is listed under the ticker ACMESOLAR. This positive reaction reflects investor confidence in the company’s growth trajectory and its commitment to sustainable energy solutions. Furthermore, this project is expected to significantly contribute to reducing greenhouse gas emissions, aligning with India’s broader environmental goals and commitment to a clean energy transition.
The consistent flow of project financing and the strategic expansion of its portfolio affirm ACME Solar Holdings’ pivotal role in accelerating India’s transition towards a sustainable energy future. With strong backing from financial institutions like REC Limited and long-term power purchase agreements, ACME is well-positioned to continue its impressive growth trajectory and contribute significantly to the nation’s clean energy landscape.
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