ACME Solar Holdings has secured a debt tie-up of ₹47.2 billion (~$519.2 million) from Indian financial institutions to fund the construction of renewable energy projects and optimize its capital structure by reducing financing costs.

Out of the total amount, ₹27.1 billion (~$298.1 million) has been secured from Power Finance Corporation for ACME’s 300 MW firm and dispatchable energy (FDRE) project that combines renewables with four hours of battery energy storage.

In addition, ACME Solar has received ₹8 billion (~$88 million) from the National Bank for Financing Infrastructure Development for its 150 MW solar plus energy storage system (ESS) project.

The 150 MW project includes two hours of battery storage with 50% availability.

Both the FDRE and solar plus ESS projects have grid connectivity in place and are in advanced stages of construction.

The remaining ₹12.09 billion (~$133 million) under the current financing round has been secured from Yes Bank to refinance the 300 MW Sikar solar project.

According to the company, this refinancing will initially reduce the project’s cost of debt by 170 basis points, with the reduction eventually reaching 195 basis points.

The financing, raised through various subsidiaries, includes both new greenfield funding and refinancing, with tenors ranging between 18 and 20 years. With this latest round of funding, ACME Solar has secured approximately ₹105.9 billion (~$1.17 billion) of greenfield financing in the current financial year.

This has resulted in an overall debt tie-up covering more than 90% of the power purchase agreements signed for projects under construction. In addition, the company has refinanced around ₹33.8 billion (~$372 million) of debt, achieving an average rate reduction of about 135 basis points on the refinanced amount.

ACME Solar has also secured an additional rate reduction of nearly 60 basis points on approximately ₹40.3 billion (~$443 million) of debt across other projects, including two operational projects that have moved to a fixed-rate regime with existing lenders.

ACME Solar has a total renewable energy portfolio of 7,520 MW, comprising 2,942 MW of operational capacity and 4,578 MW under construction, including around 15 GWh of battery energy storage system installations. Of the total portfolio, 5,380 MW has signed PPAs.

In October this year, ACME Solar signed a 25-year power purchase agreement with Tata Power Company for FDRE from its 50 MW solar-plus-storage project at a tariff of ₹4.43 (~$0.05)/kWh.

In September, the company received a letter of award from Tata Power Company’s distribution arm, Tata Power-D, for developing a 50 MW FDRE project, with a tariff of ₹4.43 (~$0.051)/kWh.