ACME Solar Wins Compensation for Rajasthan Project Amidst Regulatory Changes

ACME Solar Holdings has announced that its subsidiary, ACME Aklera Power Technology, has received a change in law compensation for a solar project in Rajasthan. The Rajasthan Electricity Regulatory Commission's decision is poised to secure significant additional revenue for the project over 15 years, highlighting regulatory reform benefits.

ACME Solar Holdings revealed on Monday that its subsidiary, ACME Aklera Power Technology, has secured Rs 47.40 crore as a 'change in law compensation' for a 250-MW solar project in Rajasthan. The compensation decision follows a ruling by the Rajasthan Electricity Regulatory Commission (RERC), promising to boost the project's revenue by 3.5 per cent over 15 years.

The awarded sum accounts for the imposition of basic customs duty on solar cells and modules, the hike in Goods and Services Tax (GST) from 5 per cent to 12 per cent, and the associated carrying cost. This compensation is structured through an annuity mechanism at a 9 per cent discount rate over 15 years, assuring fair cost recovery for unforeseen regulatory expenses and safeguarding the project's financial viability.

This case is seen as a landmark in reinforcing regulatory certainty and cost stability within India's renewable energy sector. ACME Solar commended the RERC's prompt decision, reinforcing stakeholders' confidence in India's regulatory framework and its commitment to supporting renewable energy expansion. ACME Solar Holdings, a leading player in the renewable sector, boasts a diverse portfolio of solar, wind, storage, and hybrid solutions with significant operational and under-construction capacities.

(With inputs from agencies.)