ACME Solar announced a ₹17,000 crore capital expenditure plan for 2026, primarily targeting the development of hybrid and 24/7 renewable energy projects. The company is also considering entry into the nuclear energy sector, although these plans are still in the early stages, according to a statement released by ACME Solar.
The firm intends to invest ₹17,000 crore to expand its renewable energy capacity to 5 GW by 2026. Looking ahead, ACME Solar aims to triple its current renewable energy capacity, targeting 7 GW by 2028. “We are focusing on hybrid and firm, dispatchable renewable energy (FDRE) projects, as they provide a substantial boost to both revenue and margins,” said CEO Nikhil Dhingra.
FDRE projects combine renewable energy with storage systems, ensuring a constant, reliable supply of green energy and addressing issues of intermittent power generation. Dhingra added that the company’s capacity expansion will roll out in two phases, beginning in April this year.
As of the first nine months of FY25, ACME Solar’s portfolio stood at 6,970 MW, with 2,540 MW operational and 4,430 MW under construction. Approximately 49% of these projects are in the hybrid and FDRE categories.
The 2,540 MW currently operational is expected to deliver an annualized EBITDA of up to ₹1,800 crore. The company’s power off-take is distributed between central and state buyers, with a split of 67% and 33%, respectively, reflecting the rising demand for renewable energy from both levels of government.
ACME Solar signs long-term power purchase agreements (PPAs) of 25 years, providing stability and reducing exposure to fluctuations in the merchant power market. In terms of its growth strategy, Dhingra emphasized that the company is not only focused on solar expansion but also diversifying into wind, hybrid, and FDRE solutions. These projects have shorter capital expenditure-to-revenue cycles, allowing for faster returns.
ACME Solar recently invested ₹4,400 crore in a 1,200 MW inter-state transmission system in Jaisalmer, Rajasthan. The company has also made significant progress in reducing its net debt. Following its IPO, ACME Solar reduced its net debt by ₹2,070 crore, while securing ₹16,500 crore in additional debt for its 1,700 MW under-construction hybrid and FDRE projects.
ACME Solar has secured grid connectivity for 4,430 MW of its under-construction projects, with an additional 2,000 MW available for future bids. In addition to its work in solar, wind, and hybrid energy, Dhingra expressed the company’s interest in exploring nuclear energy investments, especially in light of the government’s push for increased private sector involvement in the sector. For the third quarter of FY25, ACME Solar reported a 9.9% year-on-year revenue increase, reaching ₹401 crore. EBITDA rose by 15.7%, while net profit soared by 152.1%.
ACME Solar Holdings Limited is a fully integrated renewable energy company in India, specializing in a diverse portfolio that includes solar, wind, hybrid, and Firm and Dispatchable Renewable Energy (FDRE) projects. As one of the top 10 independent power producers in the country’s renewable energy sector, the company boasts an operational capacity of 2,540 MW and an under-construction capacity of 4,430 MW.
ACME Solar generates stable, long-term cash flows by selling electricity to a range of offtakers, including government-backed entities, through long-term Power Purchase Agreements (PPAs) typically set at fixed tariff rates for 25 years. With in-house capabilities for EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance), the company ensures tight control over processes, costs, and timelines, offering flexibility in technology and supplier choices.
