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ACME Solar Secures INR 2,646.64 Crore REC Financing for 450 MW Hybrid Peak Power Project

ACME Solar has secured INR 2,646.64 crore in long-term project financing from REC Limited for the development of its 450 MW/1,800 MWh Assured Peak Power Project, reinforcing the growing role of hybrid renewable energy systems in delivering reliable and dispatchable clean electricity. REC will act as the sole lender for the project with a 20-year financing tenure, while the electricity generated will be supplied to SJVN Limited under a 25-year Power Purchase Agreement (PPA) at a tariff of INR 6.74 per unit.

The project, being developed by ACME Greentech Seventh, integrates solar photovoltaic (PV) generation with a Battery Energy Storage System (BESS), enabling renewable power to be stored during periods of high solar generation and dispatched during peak demand hours. This hybrid configuration enhances grid reliability by providing firm and predictable power output, addressing one of the key challenges associated with variable renewable energy sources such as solar.

Unlike conventional solar projects that generate electricity only during daylight hours, assured peak power projects are designed to supply electricity during predefined peak demand periods when power consumption is highest. By combining large-scale battery storage with renewable generation, the project will improve the availability of clean energy during evening demand peaks, reduce dependence on fossil fuel-based peaking power plants, and support grid balancing as renewable energy penetration increases.

The financing reflects the increasing importance of energy storage in India's power sector as the country accelerates its clean energy transition. With ambitious targets of achieving 500 GW of non-fossil fuel-based installed power capacity by 2030, utilities and developers are increasingly investing in hybrid renewable energy projects capable of delivering round-the-clock or peak-hour electricity. Battery storage is emerging as a critical technology for improving grid flexibility, reducing renewable energy curtailment, and ensuring a stable supply of power despite fluctuations in solar generation.

REC Limited, a leading infrastructure financing institution in the power sector, has been expanding its support for renewable energy, transmission, battery storage, and emerging clean energy technologies. The funding for ACME Solar's project aligns with national efforts to strengthen energy security while facilitating greater integration of renewable energy into the electricity grid through long-term, financially viable infrastructure investments.

The project also highlights the growing adoption of assured peak power procurement by distribution companies and central agencies. Long-term PPAs for hybrid renewable projects provide developers with revenue certainty while enabling procurers to access clean, reliable electricity during periods of high demand, reducing reliance on expensive conventional power purchases in the spot market.

As India's renewable energy sector evolves from capacity addition to grid reliability and flexibility, projects combining solar power with Battery Energy Storage Systems (BESS) are expected to become an increasingly important part of the country's energy mix. ACME Solar's latest investment represents another step towards building a more resilient, dispatchable, and low-carbon electricity system capable of supporting India's rapidly growing power demand while advancing its long-term decarbonisation goals.