New Delhi, March 2: ACME Solar announced a major expansion strategy on Sunday, committing ₹17,000 crore in capital expenditure for FY26, primarily directed toward hybrid and round-the-clock renewable energy projects. The ambitious move aims to significantly scale up the company’s renewable energy capacity to 5 gigawatts (GW) by 2027 and eventually reach 7 GW by 2028.
CEO Nikhil Dhingra highlighted the importance of hybrid and FDRE (Firm and Dispatchable Renewable Energy) projects, saying, "We intend to focus our new capacities on the revenue and margin accretive hybrid and FDRE projects as a critical pivot in our business strategy." FDRE refers to renewable energy projects integrated with energy storage systems, designed to ensure uninterrupted, 24/7 supply of clean energy, addressing the intermittent nature of renewable generation.
Two-Phase Expansion from April 2025
ACME Solar plans to execute this extensive capacity expansion in two phases, beginning in April 2025. The strategy aligns with India's broader push towards renewable energy adoption, positioning ACME Solar as a crucial player in the country’s energy transition journey.As of the first nine months of FY25, ACME Solar’s total portfolio stands at 6,970 MW, consisting of 2,540 MW operational projects and 4,430 MW under construction. Currently, hybrid and FDRE projects constitute 49% of the total portfolio, demonstrating the company's strategic shift towards higher-margin, reliable renewable solutions.
Operational Strength and Financial Stability
The existing operational capacity of 2,540 MW is projected to yield an annualized EBITDA run rate of approximately ₹1,800 crore. The company maintains a balanced power off-take distribution, with central and state agencies purchasing 67% and 33% respectively. This balance reflects rising renewable energy demand from both central and state governments, securing stable revenue streams for ACME Solar through long-term Power Purchase Agreements (PPAs) lasting up to 25 years, thereby insulating the company from volatile merchant markets.Strategic Diversification and Debt Management
CEO Dhingra underscored ACME Solar’s diversified strategy, noting that ongoing construction includes solar, wind, hybrid, and FDRE solutions. Such projects offer a shorter capital expenditure-to-revenue cycle, enhancing revenue generation efficiency and profit margins.Recently, the company has invested ₹4,400 crore into a 1,200 MW inter-state transmission-connected project located in Jaisalmer, Rajasthan. Additionally, through proceeds from its recent IPO, ACME Solar successfully reduced net debt by ₹2,070 crore. It has also secured additional financing amounting to ₹16,500 crore specifically earmarked for ongoing 1,700 MW hybrid and FDRE project development.
Grid connectivity is already secured for the entire 4,430 MW under-construction capacity, while further connectivity for an additional 2,000 MW is available for upcoming bids.
Eyeing Nuclear Energy Opportunities
ACME Solar is also exploring potential investments in nuclear energy, aligning with the Indian government's recent initiatives encouraging private sector participation. Dhingra clarified that nuclear energy ventures are currently at the preliminary evaluation stage.Robust Financial Performance in Q3 FY25
In Q3 of FY25, ACME Solar demonstrated strong financial performance, registering a 9.9% increase in revenue, reaching ₹401 crore year-on-year. Furthermore, EBITDA rose significantly by 15.7%, and the company recorded an impressive surge of 152.1% in net profit compared to the previous year.This strategic investment plan and robust financial health underscore ACME Solar’s prominent role in India's renewable energy market, aiming to reinforce its position as a leading provider of sustainable energy solutions nationwide.
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