Solar Company Secures Rs 1,988 Crore in Financing from Power Finance Corporation (PFC) and Wins 300 MW SECI ISTS Solar Project at a tariff of Rs 3.05 per Unit
This approach leverages the existing grid connectivity in Bikaner-2 and capitalizes on the substantial capital expenditure already incurred, streamlining the project's development and ensuring timely completion.
ACME Renewtech Private Limited, a subsidiary of ACME Solar Holdings Limited, has secured Rs 1,988 crore in term loan financing from Power Finance Corporation (PFC) to fund the development and construction of a 300 MW Solar-Wind Hybrid Renewable Energy Project. The project will be strategically located in high-resource potential areas, with solar capacity in Bikaner, Rajasthan, and wind sites in Bhuj, Gujarat. With a Power Purchase Agreement already signed with NTPC and grid connectivity in place, the project is poised for successful execution. Notably, PFC, as the sole lender, has structured the financing with an optimal debt-to-equity ratio of 80:20, ensuring a sound financial framework for the project.
Furthermore, ACME Solar has achieved another significant milestone by securing a 300 MW Solar Power Project under the SECI-ISTS XVIII scheme at a competitive tariff of Rs 3.05 per unit. The project is mandated to commence operations before June 30, 2025, as per the PPA terms. To meet this deadline, ACME Solar strategically plans to allocate its existing under-construction ACME Sikar project to fulfil this new bid. This approach leverages the existing grid connectivity in Bikaner-2 and capitalizes on the substantial capital expenditure already incurred, streamlining the project's development and ensuring timely completion.
The successful bid under the SECI-ISTS XVIII scheme will benefit from the Inter-State Transmission System (ISTS) waiver, as the Scheduled Commercial Operation Date (SCOD) is set before June 2025. This aligns perfectly with the government's incentives for the early operationalization of renewable energy projects, further enhancing the project's viability and contributing to India's ambitious renewable energy targets.
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About the Company
ACME Solar Holdings Limited is a renewable energy company in India with a diversified portfolio across solar, wind, hybrid and Firm and Dispatchable Renewable Energy (FDRE) projects. The company is one of the top 10 renewable energy independent power producers in India with an operational capacity of 2,540 MW and under construction capacity of 4,180 MW. The Company generates long-term stable cashflows through the sale of electricity to various off-takers including central and state government-backed entities via long-term contracted PPA typically for fixed tariff rates for 25 years. The company has in-house EPC and O&M capabilities allowing it to control processes, costs and timelines and giving flexibility in the choice of technology and suppliers.
According to Quarterly Results, the total revenue increased by 7.4 per cent to Rs 295 crore and net profit increased by 75.4 per cent to Rs u crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the total revenue increased by 5.5 per cent to Rs 635 crore and net profit increased by 10.6 per cent to Rs 152 crore in H1FY25 compared to H1FY24.
ACME Solar Holdings Limited has achieved substantial growth and operational efficiency in the first half of FY25. The company's total portfolio has expanded to 6,720 MW, comprising 2,540 MW of operational capacity and 4,180 MW of under-construction projects. The operational capacity has nearly doubled, increasing from 1,340 MW in Q1FY25 to 2,540 MW, primarily due to the recent energization of 1,200 MW SECI ISTS projects in October 2024.
The total order book for under-construction projects to 4,180 MW. For these projects, grid connectivity is in place for all 4,180 MW, PPAs have been signed for 1,660 MW, LOAs have been awarded for 2,120 MW and debt financing of Rs 1,400 crore (Rs 14,500 crore) has been secured. Additionally, the company has refinanced operational projects worth Rs 4,500 crore, resulting in a cash release of Rs 590 crore.
Disclaimer: The article is for informational purposes only and not investment advice.