India’s renewable energy sector has taken a significant step toward reliable clean electricity supply after ACME Solar Holdings Limited signed a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India Limited (SECI).
The ACME Solar Seals a Massive Deal contract guarantees renewable power supply for 25 years from a wind-solar hybrid project forming part of a 380-megawatt (MW) mega development.
The agreement, executed through ACME subsidiary ACME Urja One Private Limited, signals a broader shift in India’s energy strategy — from intermittent renewable capacity toward dependable, dispatchable green electricity capable of supporting round-the-clock demand.
ACME Solar Seals a Massive Deal Agreement: What Exactly Has Been Signed?
The signed portion of the project covers 190 MW initially, representing the first phase of the 380-MW hybrid facility awarded under SECI’s hybrid power auction programme.
Under the terms of the agreement:
- ACME Solar will generate electricity using solar photovoltaic panels and wind turbines
- A Battery Energy Storage System (BESS) will store surplus power
- Electricity will be supplied to SECI for distribution to state utilities
- Contract duration: 25 years
- Commercial operations expected: 2028
The project must maintain a minimum annual capacity utilisation factor (CUF) of approximately 50%, significantly higher than standalone solar plants. This requirement is critical because it ensures reliable electricity output rather than weather-dependent generation.
Why Hybrid Renewable Energy Is Important
India’s energy transition faces a core challenge: renewable power is abundant but inconsistent.
Solar plants produce electricity only during daylight hours. Wind farms depend on seasonal and geographic weather patterns. Electricity demand, however, peaks in the evening — precisely when solar generation declines.
Hybrid renewable projects address this mismatch.
How Hybrid Systems Work
- Solar generates electricity during the day
- Wind contributes power during evenings and monsoon seasons
- Battery storage supplies power during peak demand
This combination creates a flatter, more stable generation curve. Power engineers often refer to this as “firm renewable power” — electricity that behaves more like conventional generation.
Role of SECI in India’s Renewable Ecosystem
The Solar Energy Corporation of India (SECI) plays a central role in the country’s renewable deployment. Established by the Ministry of New and Renewable Energy (MNRE), it acts as a national power aggregator.
Instead of each state negotiating separately, SECI:
- Conducts renewable energy auctions
- Signs long-term contracts with developers
- Allocates electricity to state distribution companies (DISCOMs)
This model reduces financial risk and improves bankability. Energy economists say SECI has been instrumental in reducing renewable tariffs and attracting global investment.
Financing and Bankability
The project has secured financial backing from Power Finance Corporation (PFC), a government-owned infrastructure lender. Large renewable projects are capital-intensive. Developers spend heavily upfront on:
- Land acquisition
- Turbine installation
- Solar modules
- Transmission connectivity
- Battery storage systems
Long-term PPAs like this one are essential because lenders finance projects based on guaranteed revenue streams.
A senior infrastructure finance analyst explained:
“Banks do not fund generation capacity; they fund predictable cash flows. A 25-year contract provides that certainty.”
Battery Storage: The Key Technology
Battery Energy Storage Systems represent the most transformative element of hybrid projects.
Storage allows developers to:
- Store midday solar surplus
- Supply electricity during evening peaks
- Stabilise grid frequency
India’s power demand peaks after sunset — a period often called the “duck curve problem” in energy planning. Hybrid storage systems directly address this issue.
Battery prices have fallen sharply over the past decade, making hybrid projects increasingly viable.
Impact on Electricity Prices
Will consumers immediately see lower electricity bills? Not necessarily.
Electricity tariffs include multiple components:
- Generation cost
- Transmission charges
- Distribution losses
- State electricity duties
- Subsidies
However, hybrid renewable PPAs offer long-term price stability because they avoid fossil fuel price volatility. Coal and gas prices fluctuate globally. Renewable generation has near-zero fuel cost once installed.
Over time, economists expect hybrid projects to help stabilise procurement costs for utilities.
Grid Stability and Energy Security
India’s power grid must balance supply and demand every second. Increasing renewable share makes this more complex. Coal plants historically provided steady baseload supply. As renewable penetration rises, the grid requires flexible generation sources.
Hybrid projects serve as a middle ground between intermittent renewables and fossil plants.
Power system planners say these projects reduce the need for expensive gas-based peaking stations and diesel backup generators. They also enhance energy security by reducing dependence on imported fuel.
Policy and Climate Targets
India has pledged to achieve 500 GW of non-fossil fuel power capacity by 2030 and reach net-zero emissions by 2070. Meeting those targets requires not just capacity additions but reliable supply.
Hybrid projects are now central to government renewable auctions because they support higher renewable penetration without destabilising the grid.
Energy policy experts view the ACME-SECI deal as part of India’s transition from renewable expansion to renewable integration.
Industry Reaction
Energy analysts view the agreement as a sign that the renewable sector is entering a maturity phase. An independent power consultant in New Delhi said:
“The first phase of India’s solar revolution focused on adding megawatts. The next phase focuses on delivering usable electricity at all hours.”
Investors have also responded positively to hybrid models due to predictable long-term revenues. ACME Solar’s contracted portfolio now spans multiple gigawatts, placing it among the major private renewable developers in India.
Challenges and Risks
Despite strong momentum, hybrid projects face hurdles:
Transmission Constraints
Grid infrastructure expansion must keep pace with renewable capacity.
Storage Cost
Batteries remain expensive and require replacement over project life cycles.
Land and Permits
Large projects require significant land and environmental clearances.
Technology Integration
Managing solar, wind and storage together requires sophisticated forecasting and control software.
Environmental Implications
Hybrid projects significantly reduce carbon emissions by replacing fossil fuel generation. They also reduce the need for emergency diesel power during shortages. However, environmental planners stress the importance of:
- Responsible land use
- Biodiversity protection
- Battery recycling infrastructure
What This Means for the Future
India’s renewable strategy is evolving toward round-the-clock clean power rather than intermittent generation. Future energy tenders are expected to increasingly prioritise:
- Hybrid generation
- Storage capacity
- Firm renewable supply
The ACME-SECI project may therefore represent a model for future large-scale renewable deployment.
Related Links
2026 Portfolio Picks: Top 5 solar stocks that every clean energy investor should watch right now
Electricity from Space? How Space-Based Solar Power tech is moving from sci-fi to reality in 2026.
The 25-year agreement between ACME Solar and SECI for the 380-MW hybrid renewable project marks an important turning point in India’s energy transition. By combining solar, wind and battery storage, the project aims to deliver reliable clean electricity rather than variable output.
While challenges remain in financing, grid expansion and storage deployment, hybrid renewable systems are emerging as a practical solution for balancing sustainability with reliability.
As India moves toward large-scale renewable adoption, projects like this could become the backbone of the country’s future electricity system.
