ACME Solar Secures 25-Year PPA with NHPC for 250 MW FDRE Project at Rs 4.56/kWh

ACME Solar Holdings Ltd has signed a landmark 25-year Power Purchase Agreement (PPA) with NHPC Limited for a 250 MW Firm and Dispatchable Renewable Energy (FDRE) project in Rajasthan. The agreement, finalized under NHPC’s Tranche-VI auction, marks a significant step in India’s transition to round-the-clock renewable energy backed by storage.  

Key Highlights of the Agreement  

- ACME Solar won the bid at a tariff of Rs 4.56 per kilowatt-hour through an e-reverse auction conducted in December 2024  
- The project will be developed on a build-own-operate basis and connected to the Inter-State Transmission System (ISTS)  
- It includes a 1,150 MWh Battery Energy Storage System (BESS) to ensure four hours of peak power supply daily  
- The PPA spans 25 years and is expected to support NHPC’s renewable purchase obligations and energy storage mandates  

Project Scope and Technical Details  

- The FDRE project will blend solar, wind, and battery technologies to deliver reliable, dispatchable power  
- Scheduled commercial operation is targeted for FY 2027–28, assuming PPA execution in early FY 2026  
- The project includes a green-shoe option that could expand capacity from 250 MW to 500 MW  
- ACME plans to leverage its existing CTU connectivity in Rajasthan and Gujarat for project execution  

Strategic and Market Impact  

- With this win, ACME Solar’s total renewable energy portfolio has grown to approximately 7 GW  
- The company’s committed long-term supply to NHPC now stands at 930 MW, including a previously awarded 680 MW FDRE capacity  
- The project supports India’s broader goal of achieving 500 GW of non-fossil fuel capacity by 2030  
- It also aligns with NHPC’s strategy to diversify into firm renewable energy solutions beyond hydropower  

Future Outlook  

The ACME-NHPC PPA represents a pivotal moment in India’s renewable energy landscape, showcasing the viability of firm, dispatchable green power at competitive tariffs. As the project moves toward commissioning, it is expected to set a benchmark for future FDRE tenders and catalyze private sector participation in energy storage-backed renewables.  

Sources: Economic Times, PV Magazine India, Power Peak Digest, Business Standard, CNBC-TV18, NHPC, ACME Solar Holdings.

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