Project Financing
ACME Solar Raises ₹2,646.64 Crore Project Funding for 450MW/1800MWh FDRE Project from REC Ltd
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ACME Solar Holdings Limited has secured long-term project financing of ₹2,646.64 crore from REC Limited for its 450MW/1800MWh Assured Peak Power (FDRE) project. The funding will support project development and construction, while REC will serve as the sole lender for the next 20 years. The project operates under a 25-year Power Purchase Agreement (PPA) with SJVN Limited.
PRICE-SENSITIVE TRIGGER
Event: ACME Solar secured long-term debt financing from REC Limited for its FDRE renewable energy project.
Type: Project Financing
Impact: Positive
Immediate Effect: The financing provides capital visibility for project execution, strengthens funding certainty, and supports timely construction of one of ACME’s large-scale renewable energy projects.
financials:
Key Metrics:
- Project Funding: ₹2,646.64 crore
- Project Capacity: 450 MW Solar + 1800 MWh Battery Energy Storage System (BESS)
- Lender: REC Limited
- Loan Tenure: 20 years
- Power Purchase Agreement: 25 years
- PPA Counterparty: SJVN Limited
- Tariff: ₹6.74 per unit
Credit Ratings Assigned:
- Japan Credit Rating Agency (JCR):
- Foreign Currency Long-Term Issuer Rating: BBB / Stable
- Local Currency Long-Term Issuer Rating: BBB / Stable
- Rating & Investment Information (R&I):
- Foreign Currency Issuer Rating: BBB / Stable
- Domestic Currency Issuer Rating: BBB / Stable
Highlight:
- Funding Secured: ₹2,646.64 crore
What Happened ?
ACME Solar Holdings Limited announced that it has secured ₹2,646.64 crore in long-term project financing from REC Limited for its ACME Greentech Seventh 450MW/1800MWh Assured Peak Power (FDRE) Project.
The financing will be utilized for the development and construction of the project. REC Limited will act as the sole project lender for a period of 20 years, providing long-term debt support throughout the project’s lifecycle.
The project has already secured a 25-year Power Purchase Agreement (PPA) with SJVN Limited at a tariff of ₹6.74 per unit, providing long-term revenue visibility.
key details
Project Overview:
- Funding secured for a 450MW solar generation project integrated with a 1800MWh Battery Energy Storage System (BESS).
- REC Limited will finance the entire project as the sole lender.
- Loan proceeds will be deployed towards project development and construction activities.
- The project combines renewable generation with battery storage to deliver Assured Peak Power.
- Long-term PPA signed with SJVN Limited for 25 years.
- Contracted tariff fixed at ₹6.74 per unit.
- Battery storage enables better dispatchability and improves supply reliability during peak demand periods.
Note:
The combination of utility-scale solar generation and large battery storage enhances grid reliability while providing ACME with long-term contracted revenue backed by a government-linked power purchaser.
Risk Analysis
Summary:
- Although project financing significantly improves execution certainty, successful project completion remains dependent on construction timelines, operational performance, and execution efficiency.
Key Risks:
- Construction delays could postpone project commissioning.
- Cost overruns may impact project returns despite funding availability.
- Operational performance of the integrated BESS system will influence long-term efficiency.
- Regulatory or policy changes affecting renewable energy projects could impact future economics.
- Execution risk remains until commercial operations commence.
Worst Case:
- Any significant delay in construction or commissioning could postpone cash flow generation and affect expected project returns.
Risk Level: Medium
Company Commentary
- The financing will support development and construction of the FDRE project.
- REC Limited will remain the sole lender for the project over a 20-year financing period.
- The project integrates solar generation with Battery Energy Storage Systems (BESS) to provide assured peak power.
- The hybrid design improves predictability, dispatchability, and fulfillment of power supply obligations.
- ACME Solar continues to expand its diversified renewable energy portfolio across solar, storage, hybrid, and FDRE assets.
Official Exchange Filing: ACME Solar Holdings Limited
