ACME Solar Holdings has raised ₹1,571 crore in long-term project funding from India Infrastructure Finance Company Limited (IIFCL) to develop its 300 MW assured peak power plant in Rajasthan. The funding was secured on competitive terms of interest for the construction and overall implementation of the ACME Renewtech 6th project.

This financing arrangement is the first greenfield finance commitment in its entirety issued by India Infrastructure Finance Company Limited to ACME Solar Holdings. According to the financial deal, India Infrastructure Finance Company Limited has been acting as the sole lender to the clean energy asset with an extended tenor of 19 years.

Cumulative fiscal financing and hybrid renewable technology

This ₹1,571 crore loan milestone brings the aggregate project financing volume acquired by ACME Solar Holdings for the current fiscal year to an impressive ₹10,976 crore. The long-term offtake deal for the project has been finalized as a formal Power Purchase Agreement signed with the Solar Energy Corporation of India. 

The agreement is made for a term of 25 years at a fixed contracted tariff of ₹6.28 per unit. This long-term, commercial contract offers financial certainty and long-term revenue security during the 25-year project lifespan.

The project is referred to as the ACME Greentech Seventh Assured Peak Power project, which combines technology from several distinct renewable generation mechanisms. These encompass a combination of conventional and high-performance Battery Energy Storage System, along with a sophisticated power delivery control framework that fully meets the firm power supply obligations stated in the Power Purchase Agreement. 

Incorporation of storage provides higher dispatchability and supply predictability than standalone solar production facilities. To achieve this operational requirement, the facility will be complemented by a large 1,350 MWh Battery Energy Storage System that will be integrated with ACME Solar’s core solar PV generation assets as a key part of the Company’s capital spending strategy for Battery Storage across the Financial Year.

Capital expenditure and regional hub strategic alignment

The total capital investment for the development of this hybrid renewable asset is ₹2123 crore. The project is progressing well on the ground with a strong execution sequence in place, giving rise to more potential target deadlines for commissioning. Significant infrastructure milestones have already been reached, such as site location grid connectivity. 

The substation building and the separate transmission line to the substation are in advanced stages of construction. The land acquisition for the site is also largely finished, helping the construction team sustain the installation progress without any land-related regulatory delay. 

All of this hybrid asset development is being planned and executed in the same geographic area as ACME Solar’s other assured peak power projects in Rajasthan. The deployment of these advanced projects within the state positions Rajasthan as a pivotal location for the company’s progressively diversified portfolio of hybrid renewable power technologies. 

The solar and battery storage combination creates a viable model for integrating high-capacity battery storage with utility-scale solar arrays in the region, contributing to localized clean energy efforts and providing a more stable and predictable model for power generation.

Conclusion

Securing ₹1,571 crore in sole greenfield project debt from India Infrastructure Finance Company Limited is a significant milestone for ACME Solar Holdings as it grows in clean energy. The project consists of 300 MW solar generation with 1,350 MWh of battery energy storage, defining a template for dispatchable peak renewable power delivery under the 25-year SECI contract.

With total fiscal investment in excess of ₹10,976 crore, advanced construction progress, confirmation of land rights, and a defined repayment plan spanning 19 years, ACME Solar Holdings is poised to accelerate completion, bolster the renewable energy infrastructure in Rajasthan, and work toward its wider sustainable capital investment objectives.