ACME Solar stocks in focus after securing 250 MW renewable energy project from NHPC
ACME Solar secures a 250 MW FDRE project from NHPC with potential expansion to 500 MW, boosting its capacity to 6,970 MW amid mixed financial performance in Q2 FY24.
ACME Solar Holdings is in the spotlight on December 11 after securing a 250 MW Firm & Dispatchable Renewable Energy (FDRE) project from NHPC. This strategic win highlights the company’s expanding footprint in the renewable energy sector and its commitment to delivering cutting-edge sustainable solutions.
Key Project Details
The project was awarded a tariff of Rs 4.56 per unit and included a green-shoe option to scale up the capacity from 250 MW to 500 MW. With this addition, ACME Solar's total renewable energy capacity has reached an impressive 6,970 MW.
The tender, titled "Supply of 1200 MW FDRE (Assured Peak Power Supply) from ISTS-Connected Renewable Energy Power Projects Coupled with ESS (Tranche VI)," was floated to procure 1,200 MW of renewable energy integrated with Energy Storage Systems (ESS) across India. The project requires a mix of solar, wind, and battery technologies to ensure a reliable and stable four-hour peak power supply during high-demand periods.
Market Implications
This project positions ACME Solar as a key player in the renewable energy market, showcasing its technological capabilities in integrating energy storage with renewable energy solutions. Such contracts reflect the growing demand for sustainable energy solutions and bolster investor confidence in companies driving the energy transition.
Financial Snapshot
Despite this operational success, ACME Solar’s recent financial performance has been underwhelming. The company reported a 60 per cent year-on-year drop in consolidated net profit for Q2 FY24 to Rs 15.29 crore. Revenue from operations also declined by over 17 per cent to Rs 295.14 crore compared to the same period last year.
What Lies Ahead
This project is a significant boost to ACME Solar’s portfolio and aligns with India’s renewable energy ambitions. The innovative blend of solar, wind, and battery technologies could position the company for further project wins, paving the way for long-term growth.
As ACME strengthens its position in the renewable sector, its stock performance will likely reflect growing optimism over its ability to navigate challenges and capitalize on new opportunities.
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