ACME Solar Holdings Limited has made a significant stride in expanding its renewable energy portfolio. The company's wholly-owned subsidiary, ACME Platinum Urja Private Limited, has signed a 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) Limited for a 200 MW solar project with 100 MW/400 MWh battery storage capacity.

Key Highlights of the Agreement

• Project Capacity: 200 MW solar with 100 MW/400 MWh battery storage
• Tariff: ₹3.42 per unit
• PPA Duration: 25 years
• Scheduled Commissioning: June 2027

Impact on ACME Solar's Portfolio

This agreement marks a significant expansion for ACME Solar:

• Increases total PPA-signed capacity to 5,380 MW
• Adds 800 MW of contracted capacity in the current financial year
• Includes 2,320 MWh of Battery Energy Storage System (BESS) capacity

Project Specifications

The project comes with specific performance requirements:

• Annual Capacity Utilization Factor (CUF) of 25%-27% during solar hours
• Minimum availability of 70% monthly and 85% annually during evening peak hours

Financial Perspective

To understand the financial context of this agreement, let's look at ACME Solar's recent balance sheet data:

The significant increase in fixed assets and investments over the past year aligns with ACME Solar's expansion strategy, as evidenced by this new PPA. The company's growing equity base also suggests a strong financial position to support such large-scale projects.

Conclusion

This PPA represents a major step for ACME Solar in strengthening its position in the renewable energy sector. The integration of battery storage in the project showcases the company's commitment to addressing the intermittency challenges associated with solar power. As the project progresses towards its 2027 commissioning date, it will be interesting to observe how this addition impacts ACME Solar's financial performance and market standing in the evolving clean energy landscape.

ACME Solar Holdings Limited has emerged as the winning bidder for a significant 130 MW renewable energy project under the Railways Energy Management Company Limited's (REMCL) 1000 MW Round-the-Clock (RTC) tender. The company's competitive bid of Rs 4.35 per unit secured this substantial contract, marking a notable achievement in the renewable energy sector.

Key Highlights of the Deal

• Project Capacity: 130 MW
• Bid Amount: Rs 4.35 per unit
• Tender Type: Round-the-Clock (RTC) Renewable Energy
• Client: Indian Railways (through REMCL)
• Project Timeline: 30 months for commissioning

Project Specifications

ACME Solar will be responsible for supplying renewable energy complemented with dispatchable sources and/or Energy Storage Systems (ESS) to ensure firm, round-the-clock clean power. The project requirements include:

• Minimum Annual Availability:
  • 75% for the first three contractual years
  • 85% thereafter
• Power Source: ISTS-connected projects
• Agreement Type: Direct Power Purchase Agreement (PPA) with Indian Railways

Strategic Implications

1. Direct Supply: The absence of intermediaries in the PPA signifies a streamlined process, potentially leading to cost efficiencies.
2. Technological Integration: The project necessitates a combination of solar/wind and battery storage, showcasing ACME Solar's capability in managing complex renewable energy systems.
3. Market Competitiveness: The winning bid of Rs 4.35 per unit demonstrates the increasing cost-effectiveness of renewable energy for high Capacity Utilization Factor (CUF) power throughout the day.

Company Overview

ACME Solar Holdings Limited has shown significant growth in recent years, as evidenced by its financial data:

This financial strength positions ACME Solar well for executing large-scale projects like the REMCL tender.

The successful bid for this Railways tender not only strengthens ACME Solar's portfolio but also contributes to India's renewable energy goals. As the project unfolds, it will be interesting to observe its impact on both the company's growth trajectory and the broader landscape of sustainable energy in India's transportation sector.