ACME Solar Holdings’ wholly-owned subsidiary, ACME Venus Urja Private Limited, has secured long-term project financing of ₹3,892 crore from the State Bank of India (SBI). This marks ACME’s largest funding arrangement with SBI and is the bank’s first investment in ACME’s Firm and Dispatchable Renewable Energy (FDRE) projects.
Following the announcement, ACME Solar’s share price rose 2%, reflecting investor confidence in the company’s expansion into advanced renewable energy solutions.
Project Overview
The financing supports a 400 MW FDRE project being developed in Barmer, Rajasthan. The project has been contracted with NHPC at a tariff of ₹4.64 per unit. A key feature of the project is its integration of solar generation with a Battery Energy Storage System (BESS), enabling consistent and dispatchable renewable power.
By combining solar energy with advanced storage, the FDRE project can supply electricity on demand, aligning with the terms of the Power Purchase Agreement (PPA). The loan carries a 19-year repayment tenure, highlighting the long-term stability and viability of the project.
Strategic Significance
FDRE projects are considered a critical evolution in India’s renewable energy sector. They address one of the key challenges of renewable energy: intermittency. By enabling energy storage and dispatchable supply, these projects help stabilize the grid while boosting renewable energy penetration.
This initiative aligns with India’s broader energy strategy of increasing renewable capacity while ensuring reliable and predictable power supply, especially for industrial and utility consumers.
Market and Growth Implications
The SBI loan strengthens ACME Solar’s financial and operational capacity to execute large-scale, technologically advanced renewable projects. It also positions the company as a leader in dispatchable solar power solutions, a segment expected to see rapid growth as India moves toward its net-zero and energy transition targets.
ACME Solar’s ability to secure long-term funding from a major public-sector bank underscores investor confidence in both the FDRE model and the company’s execution capabilities in India’s renewable energy market.
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