ACME Solar Inks NHPC PPA for 250 MW Project Worth ₹3,700 Crore

Introduction

ACME Solar Holdings, a prominent Indian independent power producer (IPP), has signed a 25-year Power Purchase Agreement (PPA) with NHPC Ltd for a 250 MW Firm and Dispatchable Renewable Energy (FDRE) project. The agreement, signed on January 29, 2026, involves a capital expenditure of approximately ₹3,700 crore and marks a significant step in expanding ACME's renewable energy portfolio.

Details of the NHPC Agreement

The PPA was executed through ACME Urja One, a subsidiary of ACME Solar. The project is designed to provide reliable power and will be connected to the Inter-State Transmission System (ISTS), with necessary connectivity approvals already secured. A key feature of the agreement is the stringent supply obligation, which mandates a minimum annual Capacity Utilisation Factor (CUF) of 40%. Furthermore, the project must meet 90% of the peak power requirement for four hours daily on a monthly basis. Despite the minimum CUF requirement, ACME Solar anticipates the project will operate at a CUF exceeding 60%, highlighting its confidence in the project's design and technology.

Project Development and Investment

ACME Solar is fast-tracking the construction of this FDRE project, having already acquired nearly 40% of the required land. The substantial investment of ₹3,700 crore underscores the scale and technological sophistication of the project, which will likely integrate solar generation with a battery energy storage system (BESS) to meet its dispatchable power commitments. This proactive approach to development ensures that the project can move towards commissioning in a timely manner.

Impact on ACME's Growing Portfolio

The agreement with NHPC elevates ACME Solar's total PPA-signed portfolio to 5,630 MW. This is complemented by a firm pipeline of 2,140 MW for which Letters of Award (LOAs) have been received or are awaited. This deal solidifies ACME's position as one of India's largest renewable energy IPPs, with a total portfolio of approximately 7.52 GW. This portfolio is divided between 2.94 GW of operational capacity and 4.58 GW of assets currently under construction, which includes a significant 15 GWh of battery storage installations.

A String of Strategic Wins

This PPA is the latest in a series of successful bids and agreements for ACME Solar, showcasing its competitive strength in the evolving renewable energy market. Recently, the company emerged as a winner in SJVN’s FDRE-IV auction, securing 450 MW of capacity at a tariff of ₹6.75 per kWh. To fulfill this, ACME plans to develop a 300 MW solar project integrated with an 1,800 MWh BESS. In late 2025, the company also signed a 25-year PPA with Tata Power Company for a 50 MW FDRE project at a tariff of ₹4.43 per kWh, further diversifying its off-taker base.

| Recent Key Projects Secured by ACME Solar | | :--- | :--- | | Off-taker | NHPC Ltd | | Capacity | 250 MW (FDRE) | | Investment | ₹3,700 Crore | | Tenure | 25 Years | | Key Obligation | 40% Min. CUF, 4-hour peak supply |

Financial Fortification for Growth

To support its ambitious expansion, ACME Solar has successfully shored up its finances. The company recently secured a debt tie-up of ₹47.2 billion from Indian financial institutions. This includes ₹27.1 billion from the Power Finance Corporation for a 300 MW FDRE project and ₹8 billion from the National Bank for Financing Infrastructure and Development for a 150 MW solar-plus-storage project. An additional ₹12.09 billion was raised from Yes Bank to refinance an existing 300 MW solar project, optimizing its capital structure and reducing financing costs.

Market Analysis and Strategic Focus

ACME's consistent focus on FDRE and BESS-integrated projects aligns with India's growing need for grid stability and reliable power to complement intermittent renewable sources. FDRE projects are critical for managing peak demand and ensuring a smooth transition away from fossil fuels. By building in-house capabilities to develop, build, and operate these complex projects, ACME has positioned itself at the forefront of India's energy transition. The company's ability to secure long-term PPAs with credible counterparties like NHPC and Tata Power reflects strong market confidence in its execution capabilities.

Conclusion

The PPA with NHPC for the 250 MW FDRE project is a significant milestone for ACME Solar, reinforcing its leadership in the Indian renewable energy sector. Backed by a robust project pipeline, a diversified portfolio, and strong financial arrangements, the company is well-equipped to execute its large-scale projects. ACME's strategic emphasis on firm, dispatchable, and stored renewable energy solutions positions it to play a pivotal role in achieving India's clean energy goals.