ACME Solar secures Rs 3,892 cr project funding for 400 MW FDRE project

ACME Venus Urja, a subsidiary of ACME Solar Holdings, has obtained Rs 3,892 crore in long-term financing from the State Bank of India to build a 400 MW Firm and Dispatchable Renewable Energy (FDRE) project in Barmer, Rajasthan. The loan features a 19-year repayment schedule and underpins a power supply agreement carrying a tariff of Rs 4.64 per unit with NHPC.

Dispatchable renewables move from concept to scale

FDRE projects are designed to deliver clean electricity on demand, overcoming the variability that often accompanies solar and wind. By pairing photovoltaic capacity with a Battery Energy Storage System (BESS), developers can shape output to match grid requirements and contractual obligations, improving reliability without leaning on fossil-based peaking plants.

In Rajasthan’s sun-rich Barmer district, the combination of solar generation and storage will enable ACME to meet scheduled delivery windows specified in the Power Purchase Agreement. This “firming” capability is central to India’s next phase of renewables integration, where grid stability, evening ramp coverage, and predictable supply are increasingly valued alongside low-cost generation.

Financing milestone for ACME and SBI

The transaction marks ACME’s largest financing package from the State Bank of India and represents SBI’s first foray into the developer’s FDRE projects. The extended tenor is notable: longer maturities can help keep tariffs competitive by spreading capital costs over a greater portion of the project’s lifetime, a key factor for storage-backed clean power.

Public sector banking participation at this scale signals growing confidence in dispatchable clean energy business models. It also underscores how mainstream lenders are adapting to storage-led structures that rely on disciplined scheduling, energy arbitrage, and ancillary services to deliver value.

Tariff and contract dynamics

At Rs 4.64 per unit, the contracted tariff reflects the premium for firm, time-bound delivery relative to standalone solar. The inclusion of BESS allows the project to align output with grid demand curves, mitigate intermittency, and offer enhanced dispatchability under the PPA. As more utilities seek round-the-clock or evening-peak coverage from renewables, such hybrid configurations are setting new benchmarks for bankable clean energy offtake.

Why Barmer matters

Rajasthan’s high solar irradiance and vast land availability make it a natural hub for large-scale clean power. Locating an FDRE asset here leverages strong daytime generation while storage shifts electrons to higher-value hours. This is particularly relevant for evening demand surges and for meeting rigid scheduling obligations that traditional solar plants struggle to fulfill without curtailment or backup from thermal generators.

ACME’s expanding clean energy footprint

ACME Solar Holdings operates across solar, wind, storage, FDRE, and hybrid solutions, with 2,890 MW already in operation. The Barmer project builds on this platform, adding dispatchable capacity that can complement India’s hydropower and thermal fleets while accelerating the transition to a more flexible, low-carbon grid.

The bigger picture

India’s energy transition increasingly depends on turning intermittent renewables into dependable capacity. Financing packages of this scale for FDRE projects are pivotal: they normalize storage as core infrastructure, enable compliance with strict delivery schedules, and reduce the system-level need for fossil backstops. With this deal, ACME and SBI are sending a clear signal that the market for bankable, storage-backed clean power is maturing.

As construction advances, the project’s performance will be closely watched by developers, lenders, and utilities looking to replicate the model. If executed as planned, the Barmer FDRE plant should help set standards for cost, reliability, and grid services—showing how solar-plus-storage can move beyond pilots to become a staple of India’s power mix.