ACME Solar to Expand Portfolio with First Wind Project

ACME Solar Holdings Ltd. has an ambitious plan to establish its first wind energy project, marking a major expansion into the wind sector. This new venture highlights the company’s growing commitment to diversifying its renewable energy portfolio. This was disclosed during the Q2 FY25 investors call convened by JM Financial.

As per the discussion, the project is expected to come up in a month's time. Although specific details about the capacity and location were not disclosed, the first wind project is expected to play a key role in ACME’s strategy to increase its renewable energy capacity across multiple sectors, including solar and wind.

"Our first wind plant is also coming up in a month or so. So that will also help us. As we execute these FDRE and hybrid plants, our focus is we have built a team to execute these plants. Of course, we have to execute large bids of solar, largest bid of solar, small bids of wind, and of course, large bid of battery executionN," said, Nikhil Dhingra, Chief Executive Officer, Acme Solar Holdings Ltd.

The top mangement team highlighted the recently commissioned one of India's largest solar plants with a capacity of 1,800 MWp and pointed out its shifted focus to round-the-clock (RTC) power and firm dispatchable renewable energy (FDRE) solutions. FDRE projects, which, though complex due to the integration of three technologies, offer high returns. With fewer competitors in FDRE bids, ACME Solar is leveraging its expertise to manage associated risks effectively.

The management also highlighted the firm's strong focus on integrating various technologies and managing risks, particularly with floating solar, wind, and battery storage projects. 

Dwelling on the upcoming capacity, Dhingra said, "Around 900 MW odd is coming online in the next financial year," and further added that 4.2 GW is expected to be charged before around 2027.

Although ACME Solar’s main focus is on expanding its renewable energy portfolio, the company has made it clear that it is not currently looking to monetize its assets through Infrastructure Investment Trusts (InvITs) or other means. Instead, the company is focussed on consolidating its renewable energy projects, ensuring their long-term financial sustainability. The firm's approach to growth includes securing Power Purchase Agreements (PPAs) with both government and private sectors, which provide stable revenue streams for the company’s solar and wind projects. These agreements will help ACME to continue its efforts to offer competitive tariffs and keep costs low, thus ensuring the viability of its renewable energy projects.

A key discussion point was also the sustainability of the company's tariff of INR 2.51 per unit, which is made possible by falling capital expenditure (capex) and reductions in solar module prices. The company has kept costs competitive by sourcing domestic solar modules, which now reach parity with imported cells. A specific project is priced at INR 2.44 per unit, showing the impact of these cost-saving measures.

Seasonal variations, particularly heavy rains in Gujarat, have impacted generation but the company anticipates completing most of its PPAs soon.

The entry into wind energy builds upon its existing achievements in the solar sector, where the company has established a robust presence. The integration of wind power with the company’s large-scale solar installations forms part of its strategy to create a more reliable and diversified renewable energy platform.

ACME Solar’s renewable energy strategy is characterised by a balanced mix of solar and wind power, which is complemented by its focus on energy storage systems. The company's investment in battery storage solutions and hybrid projects, combining solar, wind, and storage technologies, further strengthens its commitment to providing uninterrupted clean energy.

This hybrid approach will ensure that it can offer stable energy output, even during periods when solar energy production may be less effective, due to weather patterns or seasonal changes.

In conclusion, the company’s diversification into wind energy, combined with its continued focus on solar and hybrid systems is expected  to strengthen its position in India’s rapidly growing renewable energy market. As the country pushes towards net-zero emissions, ACME Solar’s innovative approach to energy generation and sustainability will be crucial in meeting India’s clean energy goals.