ACME Solar Holdings won the 301 MW/1,204 MWh project from FDRE through an e Reverse Auction method. This is a significant win for the company, taking diversified contracted capacity to 8,071 MW as it includes Solar and BESS solutions for hour supply, excluding non-solar hours. Having 2,962 MW of capacity in operation and 5,109MW of capacity currently under construction, ACME asserts its presence in the field of renewable energy solutions.
Strategic Analysis & Impact:
ACME Solar Holdings has managed to clinch an important contract for securing assured peak supply for its 301 MW/1,204 MWh SECI FDRE-VII e-reverse auctioned project. With this win, the company’s overall diversified contracted portfolio now crosses 8,071 MW, including solar, wind, storage, hybrid, FDRE, and RTC solutions. With respect to this contract, an important feature is the 4-MWh-per-MW contracted capacity, which will be met every day exclusively during non-solar hours, along with stringent 70% monthly and 85% annual availability terms. The company has used Solar Energy Storage Technology, making use of existing connectivity between nights, for achieving the high standards of its specifications developed for the demanding peak supply term.
The company has its own EPC and O&M divisions under its integrated structure, with ACME Solar having its own EPC and O&M divisions, which is highly advantageous for the execution of projects, including the cost aspect, thereby resulting in robust operational performance, as indicated by industry-leading CUF margins and operation margins. Its current contracted ordered capacity stands at 2,962 MW, with another 5,109 MW under construction. The latest order marks the beginning of more complex forms of renewable energy solutions.
Risks & Outlook:
The key risks that come to mind as far as this particular project goes are its integration and reliability for the BESS portion to meet its obligations for supply under non-solar hour supply and high availability requirements. Project timelines and any possible delays in receiving the Letter of Award, though soon to come, are all factors that should be kept an eye on. Investors may want to keep an eye out for ACME Solar’s ability to build on this success and replicate it for its ability to integrate storage for its supply ofdispatchable power and how that improves its project and operational efficiencies as a whole. When looking to the future, one may want to keep an eye on its project commissioning timeline and its performance, along with the expansion of its diversified portfolio within renewable energies.
