ACME Solar Inks ₹3,700 Cr Deal with NHPC for 250 MW Project

Introduction

ACME Solar Holdings, through its subsidiary ACME Urja One, has signed a 25-year Power Purchase Agreement (PPA) with NHPC Limited. The agreement, finalized on January 29, 2026, is for a 250 MW Firm and Dispatchable Renewable Energy (FDRE) project. This deal marks a significant expansion of ACME's renewable energy portfolio and involves a substantial capital investment.

Details of the Power Purchase Agreement

The long-term PPA secures a 25-year offtake for the power generated from the 250 MW project, which falls under the FDRE Tranche VI tender. The counterparty, NHPC Limited, is a AAA-rated Central Government enterprise, providing strong financial security and mitigating payment risks for ACME Solar. The agreement was formally executed by ACME Urja One Private Limited, a wholly-owned subsidiary of ACME Solar Holdings. This partnership underscores the growing collaboration between private renewable energy developers and public sector undertakings to advance India's clean energy objectives.

Project Specifications and Obligations

The terms of the PPA mandate stringent performance metrics. ACME Solar is required to maintain a minimum annual Capacity Utilisation Factor (CUF) of 40%. Furthermore, the project must meet 90% of the peak power requirement for a four-hour window every day on a monthly basis. This 'firm and dispatchable' nature is crucial for grid stability, ensuring reliable power supply even when solar or wind generation is intermittent. While the minimum CUF is set at 40%, ACME Solar anticipates the project will operate at a CUF exceeding 60%, indicating high efficiency and output. The project will be connected to the Inter-State Transmission System (ISTS), with all necessary grid connectivity approvals already secured.

Investment and Construction Timeline

ACME Solar has committed a capital expenditure of approximately Rs 3,700 crore for the development of this FDRE project. The company is actively fast-tracking construction activities to ensure timely commissioning. As a significant step towards this goal, nearly 40% of the required land for the project has already been acquired. This proactive approach is aimed at meeting the project's operational deadlines and contractual obligations efficiently.

Key Project Data

Strengthening ACME Solar's Portfolio

The signing of this PPA significantly boosts ACME Solar's project portfolio. The company's total capacity under signed PPAs now stands at 5,630 MW. In addition to this confirmed capacity, ACME has a robust pipeline of 2,140 MW for which Letters of Award (LOAs) have been received or are awaited. This expansion solidifies ACME's position as a leading player in the Indian renewable energy sector, particularly in the growing segment of firm and dispatchable power.

Company's Integrated Business Model

ACME Solar operates as a fully integrated renewable energy company with a diverse portfolio that includes solar, wind, hybrid projects, and energy storage solutions. The company currently has an operational contracted capacity of 2,962 MW and a further 4,808 MW under construction, which includes a substantial 16 GWh of battery energy storage systems. By managing projects through its in-house Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) teams, ACME maintains control over project timelines, costs, and operational efficiency, which contributes to strong operating margins.

The Importance of FDRE for India's Grid

Firm and Dispatchable Renewable Energy projects are critical for India's energy transition. Unlike standard solar or wind projects that generate power intermittently, FDRE projects often combine multiple renewable sources with energy storage systems to provide a consistent and reliable power supply on demand. This helps balance the grid, reduce reliance on fossil fuels for peak power demand, and facilitate higher integration of renewable energy into the national power system. This project by ACME is a step in that direction, addressing the core challenge of renewable energy's variability.

Conclusion

The 25-year PPA with NHPC for the 250 MW FDRE project is a strategic achievement for ACME Solar Holdings. It not only secures a long-term revenue stream with a highly-rated counterparty but also enhances the company's expertise in the complex and high-value FDRE segment. With a Rs 3,700 crore investment and construction already underway, the project is set to contribute significantly to India's renewable energy capacity and grid stability in the coming years. The focus now shifts to the timely execution and commissioning of the project.