ACME Solar Holdings Limited has diversified its renewable energy portfolio further. The company, through its wholly owned subsidiary, ACME Marigold Urja Private Limited, has signed a Power Purchase Agreement (PPA) with Northeast Frontier Railway (NFR) for a 130 MW Round-the-Clock (RTC) renewable energy project.
ACME Solar announced the project on 24th December 2025 and then executed the PPA on 26th August 2026. The agreement has been signed for a period of 25 years giving a long term framework for supply of renewable electricity to Northeast Frontier Railroad.
The agreement has fixed the Scheduled Commencement of Supply Date (SCSD) as 25th February, 2029. REMC Limited is the awarding authority for the project while NFR is the designated power purchaser under the PPA.
Under the agreement, the tariff for supply of electricity has been fixed at Rs 4.35 per kWh for the entire tenure of 25 years of the contract. This is a domestic project that is expected to provide NFR with a long-term source of renewable power as the railroad industry continues to focus on clean energy and sustainable operations.
RTC RE 130MW Project
Continuous renewable energy projects, as opposed to traditional renewable power projects that depend on the availability of sunlight or wind, are designed to provide more reliable supplies of power by combining renewable generation with appropriate balancing and storage solutions.
The 130 MW project will be operated under a long term agreement with NFR and the commercial terms for supply of electricity will be based on the 25 year PPA. The supply is expected to start in February 2029, giving ACME Solar sufficient time to build and commission the required renewable energy infrastructure.
The agreement adds to ACME Solar’s portfolio of long-term power purchase agreements and is consistent with the company’s strategy of investing in renewable energy assets with predictable revenue contracts. Long-term PPAs give project developers more certainty about future cash flows, and allow large consumers such as railroads to lock in renewable power for a longer period of time.
In its regulatory filings, ACME Solar had informed the BSE and NSE that the transaction is not a related party transaction. The company further clarified that the promoter group has no interest in the entity which has awarded the project.
This disclosure has been made voluntarily by the company under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
Strong Q1 FY27 Results
The new PPA follows strong financial results for the first quarter of FY27 reported by ACME Solar.
The company said its consolidated total revenue for the quarter ended June 30, 2026 stood at ₹954 crore, up 63.3 per cent year-on-year. The profit after tax (PAT) for the quarter was ₹235 crore, an increase of 80%.
The company’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) also grew significantly by 56.5% YoY to ₹831 crore.
“The strong performance for the quarter and addition of 130 MW RTC project represents continued growth for ACME Solar in the renewable energy space.
Railroads Powered by Renewable Energy
The agreement with the Northeast Frontier Railroad is one of several steps Indian Railroads is taking to find renewable energy options to lower emissions and make its operations more sustainable. Long-term contracts for renewable electricity can meet the electricity needs of railroad zones and further national clean energy goals.
This 130 MW PPA further expands ACME Solar’s contracted renewable energy portfolio and provides long-term revenue opportunity for 25 years. The project is expected to complement the company’s growth strategy in building renewable energy assets across India.
Now the focus is on project development and execution with an anticipated start of supply in February 2029. Successful implementation of the project will be important to ensure that the contracted renewable power is delivered to NFR in accordance with the terms of the long-term contract.
Thus, the PPA signed by ACME Solar is yet another milestone in ACME Solar’s journey to build its renewable energy portfolio to meet the growing demand for reliable long term clean power solutions by large power consumers in India.
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