Small-cap stock ACME Solar Holdings jumped over 6% and hit a record high on the BSE on Monday, September 8. The rally in the stock follows the company’s announcement that it has placed a 2 GWh Battery Energy Storage System (BESS) order through Posco International Corporation.
BESS allows energy storage for later use. As energy supply can face fluctuation due to weather, blackouts, or any other foreseen disruption, BESS helps with continual power flow.
ACME Solar order details
ACME Solar has placed an order of 2 GWh of BESS with leading global energy system supplier – Chuzhou Lishen New Energy Technology Co through POSCO International Corporation and China FAW Group Import and Export Co, the company said in a filing today. With this, ACME Solar’s BESS procurement would cross 5 GWh.
The order will be delivered in phases over the next six to ten months and will be deployed across ACME Solar’s FDRE (Firm & Dispatchable Renewable Energy) and standalone BESS projects, scheduled for commissioning over the next 12 to 18 months, the exchange filing added.
Nikhil Dhingra, CEO of ACME Solar, said, “This strategic purchase will ensure the timely availability of the BESS system, playing a key role in de-risking project commissioning timelines & accelerating overall project delivery.”
Meanwhile, the order will be facilitated by Posco International, which is a global integrated business company based in Korea, with green energy being its key focus sector.
“This is the big step forward for us to the Indian market, which is the most promising BESS market in the world. With this opportunity, we will diversify our partnership with the market-leading enterprise, ACME, and enlarge our biz activities in India,” Jason Lee, Director of Posco International, said.
According to ACME Solar’s release, Lishen is a global leader in the high-end lithium-ion battery market. It has an annual production capacity of 31 GWh.
ACME board approves AK Renewable Infra’s acquisition
Meanwhile, in another update last week (September 5), the company’s board considered and approved a share purchase agreement for the acquisition of 100% equity shares of AK Renewable Infra Private Limited for an Enterprise Value of ₹79.25 crore.
AK Renewable Infra is in the business of developing of renewable energy park in India.
The acquisition provides an opportunity to acquire AK Renewable Infra, which is engaged in the development of solar parks and has secured all development rights, including land, final connectivity & associated approvals for 300 MW site in Rajasthan, which would enhance ACME’s project pipeline and also accelerate project execution and commissioning, thus expediting revenue & profitability, the company said.
ACME Solar share price trend
ACME Solar shares jumped 6% to the day’s high of ₹314.80, also its record high level. The small-cap stock listed in November last year. The stock is up 30% on a year-to-date (YTD) basis, while it has jumped 22% in the last three months.
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