ACME Solar Holdings secures 1,571 crore rupees ($179 million) from IIFCL for a 300 MW project combining solar generation and battery storage in Rajasthan, India.

ACME Solar Holdings, an Indian renewable energy developer, has secured 1,571 crore rupees ($179 million) in long-term financing from the India Infrastructure Finance Company Limited (IIFCL) for its 300 megawatt (MW) assured peak power project in Rajasthan. The deal covers the ACME Renewtech Sixth project, for which IIFCL acts as sole lender with a repayment tenor of 19 years. Much like Tenergie, which secured a €150 million financing package for 350 solar projects, ACME Solar is mobilizing structured financing to accelerate its development pipeline. The transaction also marks IIFCL's first sole greenfield financing granted to the group.

Financing and project structure

According to ACME Solar, the latest funding brings the group's total financing secured since the start of the current fiscal year to 10,976 crore rupees ($1.25 billion). IIFCL, a public Indian infrastructure finance institution, had never previously financed a greenfield project of the developer on its own. Like the $1.5 million solar subcontract recently secured by Founder Group in Kedah, this transaction reflects the growing number of financing arrangements dedicated to solar assets across Asia. The 19-year repayment tenor mirrors the long-term horizon typical of solar assets backed by power purchase agreements.

The project is backed by a 25-year power purchase agreement (PPA) signed with SECI Limited, India's public agency dedicated to solar energy, at a tariff of 6.28 rupees per unit, or roughly $0.071 per kilowatt-hour. The project's total investment stands at 2,123 crore rupees ($241 million). It combines solar generation with a battery energy storage system (BESS) with a capacity of 1,350 megawatt-hours (MWh), designed to deliver guaranteed peak power to the grid.

Grid connection nearing completion

Grid connectivity is already operational, while the pooling substation and dedicated transmission line are nearing completion, according to ACME Solar. Land acquisition for the project has also been largely secured. The entire project is being developed in Rajasthan and forms part of the group's battery-storage investment programme.