Acme Renewtech Secures Rs 1,988 Crore Loan for 300 MW Solar-Wind Hybrid Project
Acme Renewtech, a subsidiary of Acme Solar Holdings, has successfully secured a Rs 1,988 crore term loan from Power Finance Corporation (PFC), which will be utilised to finance the development of a 300 MW solar-wind hybrid renewable energy project. This marks a significant step in Acme Renewtech’s expansion into hybrid energy solutions, contributing to India’s growing renewable energy capacity. The project is set to be developed in areas with high renewable energy potential, specifically in Bikaner, Rajasthan, for solar power, and Bhuj, Gujarat, for wind energy.
The hybrid energy project is part of the company’s strategy to diversify its energy portfolio and play a pivotal role in meeting India’s ambitious renewable energy goals. Acme Renewtech’s hybrid approach combines the strengths of both solar and wind energy, ensuring a more stable and efficient power supply, particularly in regions that benefit from abundant sunlight and wind. The project will be crucial in contributing to India’s energy transition, as the country seeks to increase the share of renewables in its energy mix.
A key component of this development is the signed Power Purchase Agreement (PPA) with NTPC, one of India’s largest state-owned power utilities. The PPA ensures that the energy generated from this project will be sold to NTPC, providing a reliable buyer and revenue stream for the project. Additionally, Acme Renewtech has secured grid connectivity for the project, which is an essential step towards ensuring that the energy produced can be efficiently distributed and used in the national grid. Furthermore, the land required for the solar capacity in Bikaner has already been fully procured, a major milestone for the project. In terms of financing, Power Finance Corporation (PFC) has acted as the sole lender for the project. The Rs 1,988 crore loan is structured with an optimal debt-to-equity ratio of 80:20, allowing Acme Renewtech to secure the necessary funding while maintaining a manageable level of equity investment. This structure is designed to ensure the financial viability of the project, while also providing room for future expansion and growth within the renewable energy sector. The project’s total capital expenditure will be directed towards the construction and development phases, including setting up infrastructure, securing the necessary technology, and managing operational costs.
In addition to this ambitious solar-wind hybrid project, Acme Solar has also successfully secured a 300 MW solar project under the SECI-ISTS XVIII scheme at a tariff of Rs 3.05 per unit. This project is part of India’s broader efforts to attract investments in solar energy and accelerate its renewable energy capacity. The project is required to commence operations by June 30, 2025, according to the terms of the PPA. To ensure that the project meets this deadline, Acme Renewtech plans to allocate its existing under-construction Acme Sikar project to the new bid, taking advantage of the existing grid connectivity in Bikaner-2. By leveraging this existing infrastructure and the significant capital expenditure already incurred, Acme Renewtech is optimising its resources to meet project timelines while maintaining a competitive edge in the renewable energy market.
This project underscores the growing trend of hybrid renewable energy solutions, which offer a more reliable and flexible power generation model by combining solar and wind power. The hybrid model is particularly suited to regions with diverse renewable resources, such as Rajasthan and Gujarat, where solar and wind conditions complement each other, providing a steady power supply throughout the day and night. The success of this project is expected to set a benchmark for future hybrid energy developments in India, aligning with the nation’s goal to achieve 500 GW of non-fossil fuel-based energy capacity by 2030. Acme Renewtech’s efforts in securing financing, executing strategic partnerships, and leveraging existing infrastructure demonstrate its commitment to renewable energy growth. This project, along with its other renewable energy initiatives, positions the company as a leading player in India’s transition to clean, sustainable power. As the project progresses, it will contribute significantly to the country’s renewable energy capacity, helping to reduce carbon emissions and providing reliable, green energy to meet India’s growing power demands.
