ACME Solar Shares Hit Record High After Securing Rs 3,892 Crore SBI Funding For Barmer Project

ACME Solar Holdings Ltd. shares hit a record high in early trade Thursday after a subsidiary secured long-term project funding of Rs 3,892 crore from State Bank of India for the development and construction of a 400 MW renewable energy project.

The repayment of the SBI loan is spread across 19 years. The project is being developed in Barmer, Rajasthan, by ACME Venus Urja Pvt. and is contracted with government-owned NHPC Ltd. at a tariff of Rs 4.64 per unit, the company said in a stock exchange filing.

The project involves installing solar and Battery Energy Storage System (BESS) to meet the supply obligations and ensure higher dispatchability as outlined in the power purchase agreement.

"The funding is significant as it represents the company’s largest financing from SBI and also, represents SBI’s first financing in ACME’s FDRE projects," the filing said.

The term FDRE stands for ‘firm and dispatchable renewable energy’. These projects are renewable energy projects that are integrated with energy storage systems. They provide round-the-clock power and help solve challenges like grid balancing and underutilisation, which variable renewable energy causes.

ACME Solar Holdings has a diversified portfolio spanning solar, wind, storage, FDRE and hybrid solutions and an operational capacity of 2,890 MW. The Gurugram-based company does end-to-end development along with managing operations of the plants.

The company will float a proposal to raise up to Rs 3,000 crore via equity for shareholders' approval at the annual general meeting scheduled on Sept. 29.