ACME Explains How BESS Reduced Transmission CAPEX by ₹20 Lakh per MW

ACME Solar Holdings, the Gurugram-based renewable energy developer, said the integration of Battery Energy Storage Systems (BESS) across its projects has helped the company save around Rs 20 lakh per MW in transmission capital expenditure, while strengthening its push toward firm and dispatchable renewable energy (FDRE) solutions.

Speaking during the company’s Q3 FY26 earnings call, the management outlined how battery storage is becoming central to ACME’s strategy for optimizing infrastructure, improving grid reliability, and unlocking additional revenue streams.

"By deploying batteries at existing operational sites, we are optimizing the use of available transmission infrastructure, saving transmission CAPEX of about 20 lakhs per megawatt, avoiding execution and right-of-way challenges. This approach is expected to enable early cash flow generation while ensuring seamless integration of BESS with the respective FDRE projects upon full commissioning, where they will continue to operate under long-term PPAs for 25 years," Rajat Kumar Singh, Group Chief Finance Officer (GCFO), told investors.  

BESS Rollout and Capacity Targets

The company has upgraded its BESS deployment guidance, with plans to operationalise 2 GWh of storage capacity (Instead of the earlier guidance of 1 GWh) in Q4 FY26, followed by another 2 GWh in Q1 FY27. Looking further ahead, ACME aims to commission 10 GWh of battery storage by the end of calendar year 2027.

At present, the company’s overall portfolio includes 16 GWh of BESS capacity, with around 1,150 MWh already delivered to three project sites and currently in advanced stages of commissioning.

To support the FY27 expansion plan, the management said it has already secured most of the required battery supply, including a recent order for an additional 5 GWh of BESS capacity within the planned budget, giving it a shield from any jolt in component prices of BES from China and other countries due to any geopolitical issues in the future. 

Impact of Regulations and Market Dynamics

ACME said battery integration also helps reduce Inter-State Transmission System (ISTS) charges significantly. For instance, a standalone solar project may incur charges of Rs 1.30–1.40 per unit, whereas projects integrated with battery storage can reduce this to around 80 paise, and FDRE projects to roughly 30–40 paise per unit.

The company added that BESS deployment helps mitigate risks arising from Deviation Settlement Mechanism (DSM) regulations by improving the predictability and stability of renewable power output.

Revenue Potential from Battery Storage

The ACME management indicated that battery storage could become a significant earnings driver. According to Nikhil Dhingra, the company’s CEO, 1 GWh of battery storage can generate roughly Rs 170 crore in annual EBITDA, assuming a Rs 5 per unit arbitrage between power purchase and sale prices.

ACME is using BESS to deliver base-load renewable power, comparable to traditional thermal or nuclear supply but potentially at lower cost. The company has also applied for patents related to optimizing combinations of solar, wind, and battery storage to achieve a round-the-clock power supply.

Procurement and Supply Chain

ACME typically procures batteries from Chinese suppliers under fixed-price, short-term contracts denominated in US dollars to minimize price volatility.

Addressing recent policy changes, the management said China’s phased withdrawal of VAT export rebates on batteries will not impact ACME, as the company had already secured its current BESS requirements prior to the announcement.