ACME Solar to Invest Rs 17,000 Crore in FY26 for Renewable Energy Expansion
Massive Capex Plan to Enhance Renewable Capacity
ACME Solar has announced plans to invest Rs 17,000 crore in capital expenditure for FY26, focusing on hybrid and round-the-clock renewable energy solutions. The company is also exploring opportunities in nuclear energy, although these plans are still in the early stages.
By 2027, ACME Solar aims to expand its renewable energy capacity to 5 GW, with a broader target of reaching 7 GW by 2028. The company’s strategy prioritizes high-revenue hybrid and Firm and Dispatchable Renewable Energy (FDRE) projects.
Scaling Up Renewable Energy Projects
FDRE projects, which integrate renewable energy with storage solutions, ensure a stable supply of green power by addressing the intermittency issues associated with renewables. The company will roll out its capacity expansion in two phases, starting in April 2025.
As of the nine-month period of FY25, ACME Solar's portfolio stands at 6,970 MW, with 2,540 MW already operational and 4,430 MW under construction. Notably, nearly 49% of its projects focus on hybrid and FDRE solutions.
Financial Performance and Revenue Growth
The company’s operational capacity of 2,540 MW is expected to generate an annual EBITDA of up to Rs 1,800 crore. ACME Solar's power purchase agreements (PPAs) extend for 25 years, shielding it from merchant power market fluctuations.
The distribution of its power sales is split between central and state off-takers at 67% and 33%, respectively. This reflects the rising demand for renewable energy from both government sectors.
Strategic Investments and Debt Reduction
In line with its expansion strategy, ACME Solar recently invested Rs 4,400 crore in a 1,200 MW inter-state transmission system project in Jaisalmer, Rajasthan. The company has also taken steps to reduce its net debt, using IPO proceeds to cut it by Rs 2,070 crore. Additionally, ACME has secured Rs 16,500 crore in financing for ongoing hybrid and FDRE projects.
The company has already secured grid connectivity for 4,430 MW of its under-construction capacity, with an additional 2,000 MW available for future bidding.
Exploring Nuclear Energy Investments
With the Indian government encouraging private sector participation in nuclear energy, ACME Solar is evaluating potential investments in the sector. This move could diversify its portfolio and strengthen its position in the evolving energy market.
Strong Financial Performance in Q3 FY25
ACME Solar reported a 9.9% year-on-year revenue growth in the third quarter of FY25, reaching Rs 401 crore. EBITDA rose by 15.7%, while net profit saw an impressive increase of 152.1%.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not constitute financial advice. The opinions are those of the sources cited and not necessarily of this website or its management. Investing in financial markets involves risks, and readers should conduct their own research before making investment decisions. Please consult a qualified financial advisor for personalized advice.
0 comments:
Post a Comment