ACME Solar arm gets ₹3,184 cr REC funding for 280 MW renewable project

ACME Solar Holdings on Wednesday said that its arm ACME Hybrid Urja has secured ₹3,184 crore in project funding from state-owned REC Ltd for a 280 MW Firm and Dispatchable Renewable Energy (FDERE) project.

REC will serve as the sole lender for the project, thereby providing long-term financing for 18 years, a company statement said.

ACME Hybrid Urja Private Ltd, a wholly owned subsidiary of ACME Solar Holdings Ltd, will use the funds for the development & construction of a 280 MW Firm & Dispatchable Renewable Energy Project (FDRE), which has been contracted with NHPC, according to the statement.

This is REC Ltd's third financing initiative of ACME Solar's FDRE project, following the financing of two other FDRE projects earlier this year, with a cumulative capacity of 570 MW. 

The company signed a 25-year Power Purchase Agreement (PPA) with NHPC at a tariff of ₹4.64 /Unit.

The project combines multiple renewable energy technologies, including Solar and Battery Energy Storage Systems (BESS), to meet the supply obligations and ensure higher predictability and dispatchability.

Designed to meet a minimum annual CUF of 40 per cent and peak hours availability of 90 per cent on a monthly basis, the project will contribute significantly to reducing Greenhouse Gas (GHG) emissions and to the country's energy transition goal. 

ACME Solar Holdings Ltd is a pure-play, fully integrated renewable energy company in India, with a diversified portfolio spanning solar, wind, storage, 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 2,890 MW and under under-construction capacity of 4,080 MW plus 550 MWh of standalone BESS.