ACME Solar Boosts Green Energy with Rs 17,000 Crore Investment

Renewable energy major ACME Solar has announced an ambitious capital expenditure plan of Rs 17,000 crore by 2026, with a strong emphasis on hybrid and round-the-clock renewable energy projects.

In a statement released on Sunday, ACME Solar Holdings Ltd revealed its strategic pivot towards revenue and margin-accretive hybrid and Firm and Dispatchable Renewable Energy (FDRE) projects. These initiatives are aimed at ensuring a reliable and continuous supply of green power, addressing the intermittency issues associated with renewable energy.

“We intend to focus our new capacities on revenue and margin accretive hybrid and FDRE projects as a critical pivot in our business strategy,” said Nikhil Dhingra of ACME Solar.

The company also indicated that it is evaluating an entry into the nuclear energy sector. However, these plans are currently in the preliminary stages and remain at the drawing board level.

Capacity Expansion in Phases

ACME Solar has planned its capacity expansion in two phases, starting in April this year. As of the nine months of FY25, the company’s total portfolio stood at 6,970 MW, comprising 2,540 MW of operational capacity and 4,430 MW under construction. Notably, 49% of this portfolio is dedicated to hybrid and FDRE projects.

The company’s operational capacity of 2,540 MW is expected to generate an annualized EBITDA run rate of up to Rs 1,800 crore. The current power purchase agreements (PPAs) are split between central and state off-takers, with the central government holding a 67% share and state governments at 33%.

Key Investments and Financial Highlights

ACME Solar has made significant investments in infrastructure, including Rs 4,400 crore in its 1,200 MW interstate transmission system (ISTS)-connected project in Jaisalmer, Rajasthan. The company has also secured grid connectivity for its 4,430 MW of under-construction capacity and an additional 2,000 MW for future projects.

In a move to strengthen its financial health, ACME Solar reduced its net debt by Rs 2,070 crore using IPO proceeds. Additionally, it secured Rs 16,500 crore in debt financing for 1,700 MW of under-construction hybrid and FDRE renewable energy projects.

Exploring Nuclear Energy

Beyond solar, wind, and hybrid energy, ACME Solar is keen on exploring opportunities in nuclear energy. This move aligns with the Indian government’s recent push to involve private sector participation in the nuclear energy space.

Financial Performance

ACME Solar reported strong financial growth in the third quarter of FY25, with a 9.9% year-on-year increase in revenue to Rs 401 crore. The company’s EBITDA rose by 15.7%, while net profit surged by 152.1%.

With its aggressive investment plans and diversification into new energy segments, ACME Solar continues to position itself as a key player in India’s renewable energy transition.