ACME Solar Signs 25-Year PPA with SECI for 300 MW FDRE Assured Peak Power Project

Key Metrics:

What Happened ?

Key Details

Project & Contract Details:

• The PPA has been executed with Solar Energy Corporation of India Limited (SECI).
• The contract pertains to a 300 MW FDRE assured peak power project.
• The project includes 1,200 MWh ISTS-connected energy storage configuration.
• The agreement tenure is 25 years from the Scheduled Commencement of Supply Date.
• Scheduled Commencement of Supply Date (SCSD) is May 28, 2028.
• ACME Solar will supply four hours of assured peak power during non-solar hours.
• The project carries a minimum annual availability requirement of 85%.
• The tariff under the PPA is fixed at ₹6.28 per unit.
• The project was awarded under SECI’s FDRE Tranche-VII tender through tariff-based competitive bidding.
• The executed PPA covers 300 MW capacity versus the originally referred 301 MW LOA capacity due to project optimization adjustments.
• Following this agreement, ACME Solar’s PPA-signed portfolio increased to 6,570 MW.

Note:

• The agreement improves long-term contracted revenue visibility while strengthening ACME Solar’s position in dispatchable renewable energy and battery-integrated power solutions.

Risk Analysis

Summary:

• While the PPA provides long-term revenue stability, project execution, commissioning timelines and energy storage integration remain key operational risks.

Key Risks:

• Project commissioning is scheduled for 2028, creating execution and construction timeline risks.
• Large-scale battery storage integration may involve technology and operational challenges.
• Delays in transmission connectivity or regulatory approvals could affect project commissioning.
• Long-term project economics remain sensitive to storage system performance and operating efficiency.
• Availability obligations under the PPA require sustained operational reliability.

Worst Case Scenario:

• Project delays, cost overruns or inability to meet assured peak supply commitments could impact profitability, commissioning timelines and contractual performance obligations.

Company Commentary

• ACME Solar stated that the project will utilize existing night-time connectivity infrastructure in high irradiation zones.
• Management highlighted that the project will deliver four hours of assured peak power during non-solar periods.
• The company noted that the agreement expands its long-term renewable energy portfolio and signed capacity base.
• ACME Solar reiterated its integrated renewable energy strategy spanning solar, wind, storage, FDRE and hybrid solutions.
• Management emphasized its in-house EPC and O&M capabilities supporting cost-efficient project execution and operational performance.