ACME Explains How BESS Cut Transmission CAPEX by Rs Two Million per MW
POWER & RENEWABLE ENERGY

ACME Explains How BESS Cut Transmission CAPEX by Rs Two Million per MW

ACME Solar Holdings, the Gurugram based renewable energy developer, said integration of battery energy storage systems (BESS) has reduced transmission capital expenditure by Rs two million (mn) per megawatt (MW) and supported its shift to firm and dispatchable renewable energy. Management said deployment of BESS at existing sites optimises transmission infrastructure and avoids execution and right of way challenges. The approach is expected to enable early cash flow generation and integration with long term power purchase agreements.

The company has raised its storage deployment guidance and plans to operationalise two GWh in Q4 FY26 and another two GWh in Q1 FY27, targeting 10 GWh by the end of calendar year 2027. The portfolio presently stands at 16 GWh of BESS capacity, with about 1,150 MWh delivered to three sites and entering commissioning. To back the FY27 expansion the company said it has secured most battery supply, including an order for five GWh within the planned budget.

Battery integration also reduces inter state transmission system charges and helps mitigate risks from deviation settlement mechanism regulations by improving predictability and stability of output. A standalone solar project may face charges of about one rupee thirty paise to one rupee forty paise per unit, whereas projects with storage can cut this to around eighty paise and FDRE projects to roughly thirty to forty paise per unit. Management said these reductions materially lower delivery costs and improve project economics.

ACME management indicated battery storage could become a meaningful earnings driver and estimated that one GWh can generate roughly Rs 1.7 billion (bn) in annual EBITDA assuming an Rs five per unit arbitrage. The company is deploying BESS to provide base load renewable power comparable with traditional thermal generation and has sought patents for optimising combinations of solar, wind and battery storage to deliver round the clock supply. Procurement typically comes from Chinese suppliers under fixed price short term contracts denominated in US dollars and the company said recent changes to export rebate policies will not affect its current plans.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

ACME Solar Holdings, the Gurugram based renewable energy developer, said integration of battery energy storage systems (BESS) has reduced transmission capital expenditure by Rs two million (mn) per megawatt (MW) and supported its shift to firm and dispatchable renewable energy. Management said deployment of BESS at existing sites optimises transmission infrastructure and avoids execution and right of way challenges. The approach is expected to enable early cash flow generation and integration with long term power purchase agreements. The company has raised its storage deployment guidance and plans to operationalise two GWh in Q4 FY26 and another two GWh in Q1 FY27, targeting 10 GWh by the end of calendar year 2027. The portfolio presently stands at 16 GWh of BESS capacity, with about 1,150 MWh delivered to three sites and entering commissioning. To back the FY27 expansion the company said it has secured most battery supply, including an order for five GWh within the planned budget. Battery integration also reduces inter state transmission system charges and helps mitigate risks from deviation settlement mechanism regulations by improving predictability and stability of output. A standalone solar project may face charges of about one rupee thirty paise to one rupee forty paise per unit, whereas projects with storage can cut this to around eighty paise and FDRE projects to roughly thirty to forty paise per unit. Management said these reductions materially lower delivery costs and improve project economics. ACME management indicated battery storage could become a meaningful earnings driver and estimated that one GWh can generate roughly Rs 1.7 billion (bn) in annual EBITDA assuming an Rs five per unit arbitrage. The company is deploying BESS to provide base load renewable power comparable with traditional thermal generation and has sought patents for optimising combinations of solar, wind and battery storage to deliver round the clock supply. Procurement typically comes from Chinese suppliers under fixed price short term contracts denominated in US dollars and the company said recent changes to export rebate policies will not affect its current plans.

Next Story
Infrastructure Urban

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Next Story
Infrastructure Transport

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Next Story
Infrastructure Transport

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement