ACME Solar shares moved more than 4% higher after the company announced a major long-term power purchase agreement that strengthens its position in India’s firm renewable energy space.
ACME Solar Holdings Limited has signed a 25-year Power Purchase Agreement (PPA) with NHPC Limited for a 250 MW Firm and Dispatchable Renewable Energy (FDRE) Tranche VI project. The agreement was executed on January 29, 2026, through ACME Solar’s wholly owned subsidiary, ACMEUrja One Private Limited.
Under the terms of the PPA, the project will operate with a minimum annual Capacity Utilisation Factor (CUF) of 40%. It also includes a firm commitment to meet 90% of peak power demand for four hours daily on a monthly basis, highlighting the project’s reliability compared with conventional renewable assets. The project will be connected to Inter-State Transmission System (ISTS) substations, and all required grid connectivity approvals have already been secured, ensuring seamless power evacuation.
The FDRE project is expected to be developed at an estimated capital expenditure of around ₹3,700 crore. Construction activities are being accelerated, with nearly 40% of the required land already acquired. Once commissioned, the project is projected to achieve a CUF of more than 60%, supported by a hybrid renewable energy configuration designed to deliver consistent and dispatchable power.
