ACME Hybrid Urja, a subsidiary of ACME Solar Holding, has secured Rs31.84bn ($363m) in long-term project financing from REC for the development and construction of a 280MW firm and dispatchable renewable energy (FDRE) project. This marks the third instance of REC funding ACME Solar’s FDRE projects, following earlier investments in two projects with a combined capacity of 570MW.
The FDRE project, which integrates solar power with a battery energy storage system (BESS), aims to enhance supply predictability and dispatchability. ACME Hybrid Urja has entered a 25-year power purchase agreement with government-owned utility NHPC at a tariff of Rs4.64 per unit. The project is expected to achieve a minimum annual capacity utilisation factor (CUF) of 40% and ensure peak hours availability of 90% on a monthly basis.
“This project is a significant step towards India’s energy transition objectives,” said an ACME Solar spokesperson. “By integrating multiple renewable technologies, we are not only reducing greenhouse gas emissions but also ensuring a reliable and stable power supply.”
The strategic financing from REC underscores the growing investor confidence in India’s renewable energy sector. It also reinforces the nation’s commitment to expanding clean and sustainable energy solutions, aligning with the government’s ambitious renewable energy targets.
ACME Solar recently made battery energy storage purchase agreements (BESPAs) with NHPC for two standalone BESS projects in Andhra Pradesh, India, totalling 275MW/550 megawatt hours. In July 2023, ACME Group announced that it had secured a debt facility of Rs40bn for its green hydrogen and ammonia project in Oman.
The successful financing and development of such projects could accelerate the adoption of hybrid renewable energy solutions in India. This trend may encourage other developers to explore similar integrated projects, potentially reshaping the country’s energy landscape. The focus on firm and dispatchable renewable energy could also drive advancements in energy storage technologies, further enhancing the reliability and efficiency of renewable power sources.
As the sector evolves, the interplay between policy, technology, and market dynamics will be crucial in determining the pace and scale of India’s energy transition. The ACME Hybrid Urja project serves as a testament to the potential of innovative financing and technological integration in achieving sustainable energy goals.