ACME Solar PPA: ₹4.35 tariff for 130 MW RTC from 2029

Deal announcement and why it matters

ACME Solar Holdings Limited said its wholly owned subsidiary, ACME Marigold Urja Private Limited, has executed a long-term Power Purchase Agreement (PPA) with Northeast Frontier Railway. The agreement covers a 130 MW round-the-clock (RTC) renewable energy project. The tariff is fixed at ₹4.35 per kWh for the full contract period. The PPA runs for 25 years, with supply scheduled to begin on February 25, 2029. For Indian Railways, RTC renewable procurement is designed to match a steady, all-day electricity requirement rather than only daytime solar generation. For developers, a long-duration PPA with defined performance requirements provides visibility on offtake and pricing.

Parties involved: ACME Solar, its subsidiary, and the buyer

The PPA has been signed through ACME Solar Holdings Limited’s wholly owned subsidiary, ACME Marigold Urja Private Limited. The buyer mentioned in the agreement is Northeast Frontier Railway. The broader procurement context described alongside the deal is Indian Railways’ plan to buy firm renewable power directly from winning bidders. The updates also reference REMC Limited and REMCL in connection with the tender process, indicating a railway-linked renewable procurement platform. Under the described framework, Indian Railways enters into direct PPAs with winning bidders without an intermediary. This structure matters because it ties the power contract to the end user’s load needs and procurement process.

What “round-the-clock renewable” means in this tender

The project is described as an RTC renewable energy power project that will supply firm power for 24x7 needs. The disclosed project approach relies on a combination of renewable generation sources and flexibility tools. ACME Solar is required to supply renewable energy complemented with dispatchable sources and or Energy Storage Systems (ESS). The supply must come from Inter-State Transmission System (ISTS) connected projects. The tender conditions, as described, focus on “firm” delivery rather than intermittent output, aligning with Indian Railways’ stated need for a uniform and reliable power profile across the day.

Tender backdrop: allocation under a 1,000 MW RTC programme

ACME Solar Holdings Limited is also described as the winning bidder for 130 MW under an e-reverse auction conducted by REMC Limited under a 1,000 MW RTC renewable energy tender. The winning bid tariff is stated as ₹4.35 per unit, consistent with the PPA tariff figure of ₹4.35 per kWh. A Letter of Award (LoA) is expected to be issued as per tender timelines, as per the provided details. The allocation size of 130 MW is part of a larger 1,000 MW programme, indicating competitive price discovery through auction. The reporting also notes that shares of ACME Solar Holdings Ltd were “in focus” following the update, without providing a specific price move.

Key contract terms: tariff, tenure, and start date

The contract locks in a fixed tariff of ₹4.35 per kWh for 25 years. The scheduled commencement date for power supply is February 25, 2029. The project capacity is 130 MW. These terms collectively define the commercial backbone of the deal: price certainty for the buyer and long-term offtake certainty for the developer. Because the start date is several years out, the commissioning and performance milestones become important operational checkpoints.

Performance obligations: minimum availability requirements

The tender conditions described include minimum annual availability thresholds. The contract mandates 75 percent minimum annual availability for the first three years from commissioning. After that, the minimum annual availability requirement rises to 85 percent. These obligations are designed to ensure that “RTC” delivery is reliable enough for an end user with continuous operations. They also implicitly require careful resource planning across generation and storage, because availability requirements apply annually rather than only at specific times.

Execution timeline: commissioning within 30 months of PPA signing

ACME Solar plans to commission the project within 30 months of signing the PPA, based on the details provided. The company’s plan is described as leveraging land and grid connectivity already available in its portfolio. The reference to existing land and connectivity suggests the developer is aiming to reduce lead time and execution risk. However, the binding timeline is the stated commissioning requirement within 30 months from the PPA signing. The supply start date of February 25, 2029 sets an additional outer marker for readiness under the PPA’s delivery schedule.

Portfolio context: contracted and under-construction capacity

The provided snapshot also mentions ACME Solar’s capacity pipeline figures. It lists 7,390 MW as “contracted” capacity. It also lists 2,918 MW as “under construction.” These figures offer context on the company’s scale and execution bandwidth relative to a 130 MW award. They do not specify the split across technologies, but the broader description references solar, wind, storage, FDRE and hybrid solutions as part of the company’s wider portfolio.

Key facts table

Market impact and what investors typically track next

The immediate market relevance is that the award adds a long-tenure contracted revenue stream with a disclosed tariff, while also imposing measurable availability obligations. For Indian Railways, the deal supports procurement of firm renewable power that is designed to match a 24x7 load profile. For ACME Solar, execution will depend on building a resource mix that meets the availability thresholds using renewable generation plus dispatchable sources and or storage. The next document milestone referenced is the Letter of Award, expected as per tender timelines, alongside subsequent project progress updates against the 30-month commissioning window. Investors generally watch for clarity on project configuration, progress on connectivity, and readiness to meet the stated annual availability requirements, but any such details beyond the disclosed tender conditions have not been provided here.

Conclusion

ACME Solar’s subsidiary has signed a 25-year PPA with Northeast Frontier Railway for a 130 MW RTC renewable project at a fixed tariff of ₹4.35 per kWh, with supply scheduled from February 25, 2029. The disclosed tender framework requires firm delivery from ISTS-connected projects supported by dispatchable sources and or storage, with annual availability thresholds stepping up over time. The key near-term reference point in the updates is the Letter of Award and the execution path toward commissioning within 30 months of PPA signing.