ACME Commissions 52 MW Wind Project in Gujarat

ACME Solar has completed phase one of its 100 MW wind power project by commissioning 52 MW in Surendranagar, Gujarat.

In addition to this phase of the project being completed, another 8 MW of capacity has also been added to the project by ACME Eco Clean Energy Pvt Ltd.

As part of this Power Purchase Agreement between ACME and Gujarat Urja Vikas Nigam Limited (GUVNL), GUVNL will provide the electricity generated by the Surendranagar wind farm for a period of 25 years.

But the question is whether the ability to sell this electricity can provide ACME Solar with long-term revenue stability, benefiting both ACME Solar’s renewable energy portfolio and GUVNL’s clean energy goals for Gujarat.

How Did the Project Commissioning Progress?

The phased approach of developing the project allows ACME Solar to efficiently scale their operations while complying with the required timeframes for grid integration.

The 8 MW of added capacity from the recent commissioning of the facility now gives a total operational capacity at the Surendranagar wind power project of 52 megawatts.

The Power Finance Corporation (PFC) provided the project financing for the entire wind power project as an indicator of the supportive institutional basis for the growth of wind projects in this part of India.

Why Surendranagar?

Surendranagar has significant potential for producing wind energy due to the area's quality wind resources and its proximity to the power grid. And therefore, this wind project will play an important role in enhancing the reliability of the state's electric grid and in achieving reductions in carbon emissions.

It also provides ACME Solar with the necessary positioning in terms of regulatory approval, and the technical complexities of constructing this large wind farm demonstrate the company's expertise and ability to execute large-scale projects at this level.

This development supports India's initiative to grow its renewable energy sources and increases ACME's ability to partner with GUVNL and state utilities.

PPA and Financing Backbone

The 25-year Power Purchase Agreement (PPA) with GUVNL gives ACME and GUVNL revenue security, which is very important when bidding competitively on projects.

Funding through Power Finance Corporation shows that PFC has confidence in both ACME's previous accomplishments and the project's bankable status. Long-term agreements like this lower the risks related to being a merchant and allow for an increased focus on operational excellence.

Gujarat's renewable energy policies allow for this type of investment by providing an environment conducive to future investments.

ACME Solar's Broader Portfolio Strength

Based in Gurugram, ACME Solar Holdings Ltd., is an integrated renewable energy leader that has expertise in solar, wind, storage, return-generating renewable and hybrid energy-generating solutions. With its diversified portfolio, ACME has the ability to withstand challenges resulting from inconsistent availability of renewable resources.

The wind project in Gujarat adds to ACME’s wind collection, giving it a broader geographic scope and providing for greater efficiencies in terms of maximum capacity usage. As ACME continues to develop its operational capabilities, it can position itself more favourably to accommodate increasing demand for clean electricity from discoms and industrial users.

ACME has already made progress on its 100 MW wind project in Gujarat, with 52 MW operational now.

But the question is whether ACME can accelerate its progress towards completing the remainder of this project and begin scaling other projects throughout the country to help expedite India’s push toward renewable resources.

References

The Print
Economic Times
Energy Economic Times
The Hindu Business