ACME Solar Holdings , a leading integrated renewable energy player, has made a significant move to enhance its energy storage capabilities by placing an order for a 2 GWh Battery Energy Storage System (BESS) through Posco International Corporation. This strategic decision marks a substantial expansion in the company's commitment to renewable energy solutions.

Order Details

The order, placed with Chuzhou Lishen New Energy Technology Co., Ltd., will be facilitated through Posco International Corporation and China FAW Group Import and Export Co., Ltd. The 2 GWh BESS is scheduled for delivery in phases over the next six to ten months.

Deployment and Timeline

ACME Solar Holdings plans to deploy the newly acquired BESS across its Firm & Dispatchable Renewable Energy (FDRE) projects and standalone BESS initiatives. These projects are slated for commissioning within the next 12 to 18 months, indicating the company's rapid expansion in the renewable energy sector.

Strategic Importance

Nikhil Dhingra, CEO of ACME Solar Holdings, emphasized the strategic importance of this procurement, stating, "With this latest order, ACME Solar's cumulative BESS procurement surpasses 5 GWh, following a previous order of 3.1 GWh BESS placed in July." He further explained that this purchase would play a crucial role in mitigating project commissioning risks and accelerating overall project delivery timelines.

Market Implications

Jason Lee, Director of Posco International, highlighted the significance of this deal for the Indian market, describing it as "the most promising BESS market in the world." This partnership is expected to diversify Posco International's activities in India and strengthen its relationship with ACME Solar Holdings.

Supplier Perspective

Lu TianJun, General Manager of Lishen, expressed the company's commitment to contributing to energy efficiency initiatives in the Indian market. Lishen, with its 27-year legacy in lithium-ion battery R&D and manufacturing, brings substantial expertise to this collaboration.

ACME Solar's Position

ACME Solar Holdings has established itself as a key player in the renewable energy sector, boasting a diversified portfolio that includes solar, wind, storage, FDRE, and hybrid solutions. The company currently operates with a capacity of 2,890 MW and manages end-to-end development and operations & maintenance of its plants.

This latest BESS order underscores ACME Solar Holdings' commitment to expanding its renewable energy capabilities and solidifies its position as a forward-thinking player in the sustainable energy landscape.

ACME Solar Holdings Limited , a key player in India's renewable energy sector, has made a strategic move to bolster its project pipeline and accelerate its growth in the solar power industry. The company has approved the acquisition of AK Renewable Infra Private Limited, marking a significant step in expanding its renewable energy portfolio.

Acquisition Details

ACME Solar's Operational Committee of the Board of Directors has given the green light to acquire 100% equity shares of AK Renewable Infra Private Limited. The deal, valued at an enterprise value of INR 79.25 crore, is subject to closing conditions and adjustments as per the Share Purchase Agreement (SPA).

Strategic Implications

This acquisition is poised to bring several benefits to ACME Solar:

1. Enhanced Project Pipeline: AK Renewable Infra has secured development rights for a 300 MW capacity project in Rajasthan. This includes land, connectivity, and all necessary approvals.

2. Accelerated Execution: The acquisition is expected to speed up project execution and commissioning, potentially leading to faster revenue generation and improved profitability for ACME Solar.

3. Expanded Presence: By integrating AK Renewable Infra's assets, ACME Solar strengthens its foothold in the renewable energy park development sector.

Transaction Structure

• The deal is structured as a cash consideration.
• Upon completion, AK Renewable Infra will become a wholly-owned subsidiary of ACME Solar.
• The acquisition is expected to be completed within five business days of the SPA execution, or as agreed upon by both parties.

About AK Renewable Infra

• Incorporated on April 14, 2021
• Registered office: Shop No. 304, City Pearl, M.I. Road, Jaipur, Rajasthan
• Primary focus: Development of renewable energy parks in India
• Financial performance: The company reported nil turnover for the past three fiscal years

Regulatory Compliance

ACME Solar has disclosed this acquisition in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this transaction does not fall under the category of related party transactions.

Market Impact

This strategic acquisition underscores ACME Solar's commitment to expanding its renewable energy portfolio and accelerating its growth in the Indian solar power market. By securing rights to a substantial 300 MW capacity in Rajasthan, ACME Solar is positioning itself to capitalize on the growing demand for clean energy solutions in India.

As the renewable energy sector continues to gain momentum, ACME Solar's proactive approach in expanding its project pipeline through this acquisition may well set the stage for enhanced market presence and long-term growth in the competitive solar power industry.