ACME Hybrid Urja, a subsidiary of ACME Solar Holding, one of India's leading renewable energy independent power producers, has secured long-term project financing of Rs31.84bn ($363m) from REC for the development and construction of a 280MW firm and dispatchable renewable energy (FDRE) project.

REC, an infrastructure finance company, will act as the exclusive lender for this project, providing 18-year long-term financing.

This is the third time REC has provided funding for ACME Solar's FDRE projects, following earlier investments in two projects with a combined capacity of 570MW.

ACME Hybrid Urja has entered a 25-year power purchase agreement with government-owned utility NHPC at a tariff of Rs4.64 per unit.

The FDRE project integrates multiple renewable technologies, including solar and a battery energy storage system (BESS), to enhance supply predictability and dispatchability.

The project will achieve a minimum annual capacity utilisation factor (CUF) of 40% and ensure peak hours availability of 90% on a monthly basis.

It is expected to play a significant role in reducing greenhouse gas (GHG) emissions and advancing the country's energy transition objectives.

The strategic financing from REC reflects the growing investor confidence in India's renewable energy sector and reinforces the nation's commitment to expanding clean and sustainable energy solutions, in line with the government's ambitious renewable energy targets.

ACME Solar recently made battery energy storage purchase agreements (BESPAs) with NHPC for two standalone BESS projects in Andhra Pradesh, India, totalling 275MW/550 megawatt hours.

In July 2023, ACME Group announced that it had secured a debt facility of Rs40bn for its green hydrogen and ammonia project in Oman.