Acme Solar raises equity funding for its 250 MW project in Rajasthan

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Acme has raised equity investment from Denmark’s state-owned government fund IFU and United Nations Office for Project Services’ S3i for its 250 MW solar project in Rajasthan.

Acme holds the majority stake (51%) in the project awarded by state-run Solar Energy Corporation of India Ltd (SECI), with IFU raising a 39% stake and S3i 10%.

The total value of the project is the equivalent of just under US$ 200 million, of which about a quarter are financed through equity contributions by the three co-investors.

When commissioned, the Rajasthan solar project is expected to produce 675 GWh annually and reduce CO2 emissions by more than 500,000 tons CO2e annually, compared to the current energy mix. It will provide electricity to the equivalent of 500,000 households under a 25-year PPA agreement with SECI.

The project is estimated to create 225 direct jobs during construction and 75 permanent jobs during operation.

“This is a historic partnership agreement and we are very excited to have UNOPS S3i and IFU as our partners and co-investors in India for the development of solar projects. ACME will jointly develop world-class solar plants using the experiences of our partners in social impact measurement while optimizing operations and energy generation. This partnership is a key milestone towards ACME’s vision for developing a portfolio of 25 GW of RE projects which comes in line with India’s plans to achieve 450 GW of RE power by 2030,” said Manoj Upadhyay, Founder, and Chairman, ACME Group.

IFU’s investment is made on behalf of the Danish SDG Investment Fund, which is backed by the Danish state, larger Danish pension funds and other private investors.

The project is the first renewable energy project to be signed following the India-Denmark Green Strategic Partnership, launched in September 2020 by the Indian Prime Minister Narendra Modi and the Danish Prime Minister Mette Frederiksen.

In terms of megawatt capacity installed, the investment is one of IFU’s largest single renewable investments to date and will add further to IFU’s large portfolio of investments in renewable energy, which has reached a total of 2GW.

UNOPS will co-invest through Sustainable Investments in Infrastructure and Innovation (S3i), set up to deliver both social and environmental impact.

ACME Solar is one of India’s leading independent power producers in the solar energy sector with a combined portfolio of 5 GWp, out of which 2.3 GWp is operating and 2.7GWp under construction. The assets are well diversified with a presence across 13 states in India and a central: state mix of 65:35.

 

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