Acme Solar Holdings Ltd (NSE: ACMESOLAR) Q1 2026 Earnings Call dated Jul. 28, 2025
Corporate Participants:
Unidentified Speaker
Nikhil Dhingra — Chief Executive Officer
Rajat Kumar Singh — Chief Financial Officer
Manoj Upadhyay — Managing Director
Analysts:
Unidentified Participant
Yogesh Patil — Analyst
Samarkand Delwal — Analyst
Nikhil Abhyankar — Analyst
Dhruv Muchhal — Analyst
Ketan Jain — Analyst
Mohit Kumar — Analyst
Diana Bokinala — Analyst
Vikram Datwani — Analyst
Siddharth — Analyst
Raman K.V — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Acme Solar Holdings Q1FY26 earnings conference call hosted by Dollar Capital Markets Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Yogesh Patil from Daulat Capital Market Private Limited. Thank you. And over to you sir.
Yogesh Patil — Analyst
Thank you, Shubham. Good morning ladies and gentlemen. On behalf of Dalat Capital, I have pleasure in inviting you all for Q1 FFY 26 earnings conference call with the management of ACME Solar Holdings Limited. The management is represented by Mr. Manoj Kumar Upadaya, Chairman and Managing Director, Mr. Nikhil Dhingra CEO Mr. Rajat Kumar Singh Group CFO Mr. Ankit Verma, Head of Corporate Finance and Mr. Arun Chopra, Head of Finance and Accounts. Now without taking much time, I hand over this call to Mr. Nikhil Dhingra for the opening remarks and then we will have a question and answer. Over to you Nikhil sir.
Nikhil Dhingra — Chief Executive Officer
Thanks a lot Yogesh. Good morning everybody. Thank you all for joining us today. I’ll first start with our company performance and then I’ll update on the key updates on the industry. So Q1FY26 has been an important quarter for us both in terms of financial results and strategic milestones. We commissioned 350 megawatts of new projects including our first 50 megawatt wind project. With this our operational portfolio of independent power producer now stands at 2,890 megawatts capable of delivering an annual steady state project level EBITDA of 2000 to 2050 crores and an EBITDA yield of around 1415%.
In terms of new wins, we secured our first standalone battery energy storage projects of 550 megawatt hour contracted with NHPC. The PPA was signed in a quick time of one month. This marks a major diversification into energy storage pure energy storage contract. Further in this quarter we signed PPAs of 550 megawatts of FDRE and solar project and 550 also megawatt hour of standalone best projects. With this our under construction portfolio stands at 4080 megawatt which is all PPA signed plus 550 megawatt hours of storage. And 55% of our portfolio has signed PPAs for our under construction capacity, we have placed orders of over 3.1 gigawatt hours of battery energy storage system with suppliers like Narada and Trina Energy.
Also we have secured commitments for key long lead items like power conversion systems, transmission line power transformers, wind turbines and various other equipments. So all in all we have placed purchase orders in excess of around 7000 crores so far for our under construction portfolio. Further grid connectivity is in place for the entire 4080 megawatt of under construction portfolio. Coming to our financial performance now, our total revenue for the quarter stands at around 584 crores which is a 72% increase. Year on year EBITDA comes in at rupees 531 crores up 76%. Again we had a very healthy EBITDA margin which is aided by the operational capacity growth and also reduction in the overall percentage cost.
So the margin is now at 91%. Pat is rupees 131 crores. A very sharp jump of course because of the quarter because the capacity growth we had in this year. In terms of balance sheet, we continue to maintain strong balance sheet discipline with net operational debt to EBITDA at 4.2. How we calculate it is basically the operational project debt and the Operational Project EBITDA. This is well within our guided range of 5.5x which we seek to maintain at all times. Our net debt to net worth stands at 1.7x which is again very healthy. Further days of sales outstanding has dropped to 36 days in Q1.
Of course the proportion of central offtakers in our overall portfolio has moved to 86% now. So this really bodes well for cash flow generation for us coming to capital optimization and on the finance side a key milestone for us is tying up of refinance debt. We continue to refinance our debt and we have now taken in this quarter disbursement also for that debt of around 1,070 crores for a 250 megawatt operational project at an interest rate of 8.5% fixed for five years. This diversifies our interest rate book to some part to fixed. And this also marks the entry of new reputed lenders like bank of America, the Standard Chartered bank and India Infra Debt Limited.
In our loan book this is a 95 basis points reduction in the interest cost for this and this is this bodes well for our future refinancing. In terms of the financing cost we will we were able to reduce our weighted average cost of debt substantially and we will as we take benefit of the base rate reduction and the spread reduction because of improvement in credit rating on credit rating we are pleased to share that within six months of full operations our four SECHI assets with a cumulative capacity of megawatts have secured Crystal AA minus stable rating.
These are strong endorsements of our execution and credit profile. Now turning to operational metrics, in Q1FY26 we generated 163 crore units up over 107% year on year and our capacity utilization factor improved to 28.5% from 27% last year. In this of course, Rajasthan continues to be a very large proportion of the operational portfolio. It accounts for 2 to 5.0megawatts of our operational portfolio delivering an impressive 30.3% CUF. Now coming to industry briefly, so there are a few key updates relating to industry so Ministry of Power announced the second tranche of VGF scheme with a total financial outlay of around 5,400 crores.
This aids the development of the best projects across states VGF around 18 lakh per megawatt will be provided 18 lakh per megawatt hour will be provided under the scheme which will enable development of 30 GWh of best capacity. This is a strong signal by the government to accelerate the energy storage deployment in the country. On the regulatory front, MOP again extended the 100% waiver on the ISTs for co located best projects commissioned by June 28 and pumped hydro storage projects where construction will be awarded before the same date. This bodes well for the whole industry.
The FDRE project because it has a large component of CO located best projects. This move will strengthen the commercial viability of the integrated renewable plus storage solutions. The execution remains strong. In quarter one of this financial year the country added over 12 gigawatts of renewable capacity which is a big improvement over the last year. In this half year we have done close to 2530 gigawatts which is a very significant improvement over the last year and this 12 gigawatt added in this quarter includes 10.6 gigawatt of solar and 1.6 gigawatt of wind, taking the total installed renewable capacity to around 234Gw including large hydro non fossil fuel sources now make up more than 50% of the country’s total installed electric capacity.
Importantly, this target has been achieved five years ahead of the original schedule and we are proud to be contributing meaningfully to this transformation. Lastly, on the demand side, power consumption showed some softness during the quarter on account of early onset of monsoon. At a Higher base. India’s overall power demand during Q1 FY26 stood at 446 million units reflecting a 1% odd year on year decline. Similarly, peak power demand during the quarter stood at 242 gigawatt marking a 3.2% decline over the same period last year. Of course our business is all linked to the ppa so these industries don’t really impact us in that regard.
In closing I would like to reiterate Q1 FY26 has begun on a strong footing driven by robust operations, solid financial performance and strategic wins in storage space. We continue to prioritize disciplined growth, technology driven execution and financial agility as we expand our portfolio. With that I now open the floor for questions and I’d also like to request our CFO group CFO Rajat to say a few words.
Rajat Kumar Singh — Chief Financial Officer
Thank you Nikhil and good morning everybody. As Nikhil has already reiterated, I think there is huge opportunity including the storage solutions. So definitely from a financing and finance perspective our focus is going to continue in the growth but growth with profitability. So we are going to have projects which gives us growth as well as you know we maintain our profitable momentum. And also because you know there is significant amount of funding required for financing this project, there will be continued focus on finance reducing the financing cost. And as already you know kind of alluded by Nikhil, we have diversified our both construction financing as well as operation stage financing from multiple lenders.
We have moved away from traditional lenders that typically fund the power project. We have gone to large PSU banks, we have gone to private sector banks and also foreign lenders. As we speak we also want to. Focus on the capital market as well because encouraged by family rating for multiple projects and looking at the central ARIA project significantly contributes to our portfolio. I think we expect going forward our rating to be consistently in the AA family. Of course specific to rating of the projects but also it will contribute significantly to the holding company rating as we contribute and add more and more Central area project. Today our holding company rating is A plus with positive outlook. We look to taking it further as we keep on adding more and more projects and so certain mix of this financing going forward could be from capital market gives a diversification into various fund providers such as mutual funds, insurance companies and also provident funds.
So I think that our focus consistently is going to be on the cost of financing. We have already started reducing our cost of financing below 8.5% as we speak and also due to you know kind of policy intervention by Reserve bank of India and competition amongst the banks and financial institutions to fund this kind of project. We are already getting a lot of calls from banks and financial institutions who kind of partner with us in terms of funding and reduce the cost of funding. So I think that consistently is going to be our approach. And yes, now we can definitely go on to the question and answer.
Thank you Nikhil.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone phone. If to wish you remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, you will wait for a moment while the question queue assembles. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead. As there is no response from the current participants, we will move towards the next question.
The next question comes from the line of Meet Katrodia from Nivisha. Please go ahead.
Unidentified Participant
Yes sir. Thank you so much for the opportunity. Sir, could you please provide a breakdown of the current unit economics of the battery energy storage system projects? Specifically the capex per megawatt R and what internal rate of vision IRR are we targeting both with and without VGF? Also additionally the government has reduced the VGF right from 27 lakh per megawatt to 18 lakh per megawatt. So what are the underlying reasons for the revision?
Nikhil Dhingra
Right, right. First of the industry question of. Thank you. Thank you for the question. So in terms of the VDF reduction as you the CAPEX cost has gone down for the whole battery solution and the government is looking at the tariff reduction which has happened across the projects. Very competitive rates have come. So government believes that reduced VGF will also be fine in terms of getting the economical rates. So that is why that is the thought behind reducing the VGF. And we think it’s a very good move to at least have this much VGF because it will lead to a lower tariff for the state government and it will encourage the development of the.
And it is also in sync with the ISS waiver given by the government till 2028 because the emphasis is on stabilizing the grid, meeting the peak power demand and this VGF will keep the whole all the state governments interested to keep continuing the momentum they had built on doing this battery link projects. In terms of the projects we have one, right? So the battery projects typically are where you need to the Andhra Pradesh NHPC project we have one where we don’t need to Basically do the do the whole evacuation substation we are installing at the at the premises of the customer.
So the whole capex which is required to be done on a typical solar plant regarding transmission evacuation substation need need not be done. So we don’t need to do that. The only thing we really need to do is the battery installation, battery system installation. And that is typically done a capex of $100 per kilowatt hour. So it is much less than that. And the IRR in this is of course lesser than the fdre, but the risk is also much lesser than the fdre. So they are in high teens. So we don’t do a project which is less than a 16% return.
So the returns are much above that for this project. And these returns are aided by multiple factors. And this includes the VGF of course. And this also does not include the upside which an interest rate reduction will provide in terms of the reduced risk of the project because this does not include any land acquisition. This does not include any transmission lines. The risks are almost similar to what used to be there in a solar park bit. So that’s how it is. And the the contract tenure is shorter here also. So that also is factored in in these numbers.
Unidentified Participant
Thank you so much sir for the elaborate answer. Second answer with reference to the recently announced 3.1 GHz standard. It is one of the largest. So can you elaborate on the sourcing strategy like are we importing basic components in the semi knockdown condition or and locally local assembly, are we in full assembly battery packs? So is there any cost differential between these two approaches? Like is there any if we do assembly here it is beneficial cost wise or how should. How are we doing this?
Rajat Kumar Singh
Right, Let me reply this Nikit. First of all actually India is we are deploying first time a large scale battery in India. So it is important that we should. Get the full product from someone who has already deployed in global scale at a global simply at this time when the industry at nascent stage is not the very good strategy. It can happen later. Right? The government is there. That is the reason even the government has given the option that you can get the full battery from outside by paying a small duty while you are importing. So we want to reduce our risk of doing any local assembly at initial stage of battery deployment when in India we have a hundred gigawatt of battery deployment right that time people will think of doing a local assembly till the time. I think it is more important to ensure the reliability than the cost reduction. Of some level in terms of the warranty. This provides you a better reliability of the product because if you are procuring a cell from a different vendor and wrapping it up by a vendor who is smaller than the battery contractor then the the ramp will not be of the same quality as you would get the whole container from the battery vendor.
Unidentified Participant
Got it. So what would be the difference in terms of costing of best if you in India or direct import from India is is there any higher duty on the battery? So how much is the cost difference between India and China?
Rajat Kumar Singh
So it’s a India and China. The cost is India is not an option anymore. But in terms of the containerized I think you are only asking about the container the container part. So I think the duty difference is more or less made up by the cost increase which we make up by making in India. But it’s around 5%, 11% that is the duty difference in terms of the cell and the container. So not a very large difference if you consider the warranty cost and the reliability which is sought by our investors and lenders.
Unidentified Participant
Last one, could you share the details on the current best tendering and how much tenders are there in the pipeline and how many tenders can come in the future on Ben side.
Rajat Kumar Singh
So best our key focus on the best side is meaning the FDRE and the solar plus storage tender. Right. And we will ideally like to have those in our portfolio as compared to the pure best tenders. So that’s the first key point in. Terms of the pipeline which you are asking of the new projects which are coming. As we already said, 30 GWh of VGF has been announced and these states will like to consume that in this year or maybe the next year. So that much and they can consume it through multiple means. So we are seeing that the tendering had slowed down in the last quarter but now it will pick up because we have multiple bids coming from all the REIAs. The trend has shifted to solar plus storage and pure storage. So we are seeing less of and hopefully the 24 hour the whole day procurement will also pick up that because that will really lead to a higher growth of the of the peak power in the in the country.
So we see that these growth will be very high. It will be much higher than the last year is what we feel.
Unidentified Participant
Okay, got it. Just one follow up. Like I was talking with one of the assembly players. So they were saying if we import the cell so cell is a 4040 of the cost of the battery pack. So duty on sale is 5% and if we import the wall battery pack, it is duty. So they get duty difference of the 5, 6% if they assemble it here. So, so why like we are importing full battery pack? Could you give some reasons why it is beneficial to import wall battery pack in India?
Nikhil Dhingra
So see 40% as you rightly mentioned is the cell cost on that 6% is around 2.4% of the overall cost. 2.4% you can save, right? The quality of the integrator is as good as what is available in China. And the warranty, as I said, there’ll be a big lack of in the warranty because if you are getting the containerized solution from India then the containerized vendor will need to warranty the whole 15 years of performance. So that’s a big risk for two and a half percentage of cost improvement. Are you willing to sacrifice a large FDRE project revenue? We are currently not in favor of that.
And also the insurance sector in India has not developed to, you know, pick. All these bits and pieces and give a rag kind of insurance. So as Manoji was talking about in the early stages of this, I think. We should focus on what best price we can get it right and make the performance for a longer period of. Time by getting that kind of warranty. From the supplier, original equipment supplier. That is the key. We are a developer, we are not a manufacturer. At the end of the day we want to ensure this plan runs for a longer period of time without any problem.
Unidentified Participant
Also on part of servicing side. So are we. Do we have contact with Trina or let’s say Narada for the servicing or we will do the servicing part?
Nikhil Dhingra
No, no, no. We have a long term service agreement with both these suppliers which will on the payment of annual fees we will get the on site maintenance and the extended warranty which will be provided by these two vendors.
Unidentified Participant
Okay. Okay sir. Thank you so much.
Nikhil Dhingra
Thank you.
operator
Thank you. The next question comes from the line of Samark and Delwal from ICICI Security. Please go ahead.
Samarkand Delwal
Hello. Am I audible?
Nikhil Dhingra
Yes, you’re audible.
operator
Yes sir.
Samarkand Delwal
Yes sir. Firstly, congratulations on the performance during this quarter. My question is on the essay. The first part is I just wanted to clarify that we will be owning this for the. We will be the asset owner for the battery energy storage system that we are doing for NHP and will be receiving lead rentals, right?
Nikhil Dhingra
Correct. Correct.
Samarkand Delwal
So on the capex we are receiving release rentals and that will turn into our return. But what about the energy? The energy that NHPC supplying, that part will be received by nhpc.
Nikhil Dhingra
Correct. So that’s an input for us. We are only storing the energy for for the AP government through nspc. So the energy will be supplied by them at the hours we are supposed to maintain the service level agreement of availability and output. Basically energy provided by them during certain hours of the day as required by them.
Samarkand Delwal
Second question is on how, how is an FDRE project different from a Solar plus storage or a solar Wind plus storage?
Nikhil Dhingra
So FDRE project is essentially same as solar wind and storage project. The difference in FDRE is it could stretch to 24 hour project. Also technically, FDRE stands for firm and dispatchable renewable energy. If you implement this definition in the strictest sense of the word, you should supply it for longer duration of power. Typically a solar plus storage tender can have a peak for 2 hours, 4 hours and beyond that you will need to put some bit of wind if you want to extend at a competitive price. So the FDRE typically can have longer hours of storage.
But a Solar plus storage may have a shorter hours of storage extending up to four hours. So that could be one difference. They have been interchangeably used by in all the tenders in terms of the FDRE and solar plus storage. But the tenders we have mostly these. All FDREs are having four hours of storage. Typically in solar plus storage we have lower hours of storage, let’s say two hours and in some cases one hour. Also.
Samarkand Delwal
The difference in the storage time or supply time is the only reason for difference in tariffs.
Nikhil Dhingra
Yes, yes, yes, yes. That is the only difference. And the other difference is the fall in the Capex prices, understanding of the risk by the various counterparties, let’s say the entry of various players. So there is competitive dynamics, there is Capex dynamics and there is regulatory dynamics. So all these three always decide the tariff. And you would have seen in solar also there have been troughs and there have been peaks. So it’s all like a market cycle which is. And geopolitics also. So all these four, five factors play in terms of moving all these tariffs up and down.
Samarkand Delwal
Okay. Because FDRE is slightly higher than the clean solar.
Nikhil Dhingra
Yeah. If you look at the FDRE of a longer hours you will find tariffs of up to 4.98 which have been signed by discoms. So because they had longer hours of storage they have supply during even the night time also. So that decides the tariff.
Samarkand Delwal
Okay, thank you. Thank you so much.
Nikhil Dhingra
Thank you.
operator
Thank you. The next question comes from the line of Nikhil Abyankar from UTI Mutual Funds. Please go ahead.
Nikhil Abhyankar
Yeah, thank you, sir. And congrats. I just want to understand of this 3.1 GHz that we have given, how much of this will cater to the 2.2 gigawatt of contracted capacity that we have. I mean to flip the question for the 2.2 weeks out of contract with capacity, what is the quantum of that system required?
Nikhil Dhingra
So all of it will cater to the contracted capacity only. We are, what we are doing here is we are trying and early commission the best part of the contracted portfolio so that this 3.1 will, will be, will basically be catering to the 50% of the, the overall demand for this 2.3 gigawatt of portfolio. And what we are doing, trying to do is operationalize the best part of the system. And we have taken, we have taken approvals for that from all the counterparties and others. So before the COD of the whole FDRE component, we are trying to get the battery components operationalized which will help us improve the realizations free COD due to the, due to the merchant prices in terms of the peak power.
So that’s, that’s what we are doing. And this is all for the, all for the contracted capacity.
Nikhil Abhyankar
Okay, but you mentioned that it will only. I mean total requirements for 2.4, 2.4 GHz of contracted capacity will be much higher. Right?
Nikhil Dhingra
So it will be. Yeah, so it will be around 4. And a half, 5 gigawatt hours. We are closing more orders. So in our next month or so we are trying to close 2 gigawatt hours more of order. That will complete the overall battery requirement.
Rajat Kumar Singh
So roughly 2 gigawatt means 2 gigawatt going to multiplied by 2 and a half hour. So you can roughly the number will be 5 gigawatt hour. So right now we have ordered 5.6 gigawatt hour. So we have ordered 50%. Another 56, 55% we will be ordering soon.
Nikhil Dhingra
So out of 4 gigawatt of 100. Section, total battery requirement will be roughly 10 gigawatt hours.
Rajat Kumar Singh
Yeah.
Nikhil Dhingra
And out of this, which is PPS and is roughly two 2200 megawatt projects, that will require roughly around 6G hours of battery requirement out of which 50% is already ordered.
Rajat Kumar Singh
So our plan is that we order to get first three gigawatt hours this year to install it, then we get another three, three and a half gigawatt hour January to June install it and from June to December again 3 GWh. So totally taking up to 10 GWh that what we have shown in total requirement.
Nikhil Abhyankar
Understood, sir. And just final question on the CAPEX you can quantify the CAPEX required for say 2.20 to water construction capacity that we have.
Nikhil Dhingra
Right? Right. So capex wise FDRE is closer to around 11 crore per megawatt and so and the hybrid is around 8 crore per megawatt. So that is typically for a. For this year we have guided around 12 to 14,000 crore of capex and of course for the next year also a similar sort of number. Of course there is a downward Trend on the CapEx given the battery prices fall. So that is the sort of capex number. We’ve already placed purchase orders of close to 7,000 crore in this year and we as we said that we want to order the battery and we want to order the rest of the equipment very soon.
So we will try and close the orders for around 14,000 odd crore of capex in this year for sure.
Nikhil Abhyankar
And how much was done in Q1.
Nikhil Dhingra
Apex CPEX actually done is around 800 odd crores but the orders closed is around 7000 crores. You understand the cycle right? You, you place a purchase order then you open an I’ll see when the product is ready. So that is how CapEx happens and then the delivery happens, the CapEx is done.
Nikhil Abhyankar
Thank you sir.
Nikhil Dhingra
Thank you.
operator
Thank you. The next question comes from the line of Dhruv Muchal from HDFC amc. Please go ahead.
Dhruv Muchhal
Yes, my question was a bit related to the earlier question. So basically we have freeze the Battery prices for 3.1 GHz now at least 3.1 gig or the remaining you gradually order over the period of time.
Nikhil Dhingra
Yes, yes, we have seen the price.
Dhruv Muchhal
Got it. And so you will be early commissioning these projects and effectively probably selling any merchant market for some time until the PPA comes up. So based on your calculation, probably on a RY or minute wise basis you see that this project will give you the early commissioning, gives you that benefit, I mean gives you superior returns. Is that, I mean that back end work you have already done and that makes sense, I mean across seasons, across time portfolio. For example, generally what we see is in winter demand falls and merchant prices fall. So it is adjusting for all those factors.
Rajat Kumar Singh
We have done it in fact what happens the time sits lower sometimes in the summer what happens is the evening, right and it goes to the late night. In the winter it goes in the morning hours. So only the timing sits
Dhruv Muchhal
okay.
Nikhil Dhingra
What we are seeing group is around nine hours is the peak tariff on a one hour average basis for the last 12 months and 8.78 is the average for two hours in the last 12 months. So that’s the reference number and the production cost. You can see basically reference capex we have given. So there is. There is a good sort of. Sort of, yeah, economics and you can.
Dhruv Muchhal
For this requirement you can always go to the exchange market or say short term market to buy that power to charge your battery.
Rajat Kumar Singh
Just to clarify it, we will be doing two things. One is we will buy the power from the grid whenever it is necessary or sometimes what happens some of our plant, they have a. What happens in the peaking peak generation hours? Some of the power clips, we will use that free power also to charge the battery. Yeah.
Dhruv Muchhal
So second is on the reason we are seeing standalone battery position and also part the of is the commissioning timeline, you know, shorter there typically we have 24 months. Is it shorter in standalone battery projects?
Nikhil Dhingra
Yes, yes, yes, yes, it is 18 months in. It depends on the size of the project. But the project we have won is 18 months and the onus on giving the land and the evacuation lies on the customer. So if there is a delay on their side, this extends accordingly. But normally it will not happen because they allocate the place inside the service station. The only thing, what they have to do is just deliver the bay, otherwise the rest of the things are already there. We just need to put the battery and the transformer and they want to.
Rajat Kumar Singh
Take the VGs so they generally don’t delay. Yeah, yeah.
Dhruv Muchhal
The last question is on a portfolio basis, what would be interest cost now be and given the interest rate scenario, do you see further scope for this to change in the next two, three quarters?
Nikhil Dhingra
Yes. So our interest costs on a portfolio. Basis, especially for operating projects is close to 8.75% as we speak. But you know, we are in the process of refinancing a lot of this debt and also there is a interest cost reduction when the COD happens. So I think that during this financial year, as we end this financial year, we are expecting much significant reduction in the interest cost. One is due to reset of this. Interest on cod as well as yearly. Reset and also refinancing of these loans. It’s very difficult to say at what, but because RBI has reduced 50 basis points, it will not be unfair to. Assume that kind of reduction going forward at least over next six to eight months. But I think there will be significant reduction in interest cost.
Dhruv Muchhal
So this 8.75 is on your constructed portfolio where probably you have reasonably optimized on your debt. So this is a good representation in terms of what an operational portfolio can give you in terms of debt cost.
Nikhil Dhingra
Operational portfolio will be typically 25 to. 30 basis point higher than the under construction portfolio due to the lower. The. Under construction portfolio interest rate could be 25 to 30 basis points higher than the operation portfolio and the reduction is across the board. One is it will be slightly more in the operating portfolio because of the reset and refinancing pressure under lenders actually under the construction portfolio because of the benchmark reduction.
Rajat Kumar Singh
So what has happened is actually to clarify we have last two, three projects which technically they got commissioned in last two three months. We expect we still consider in that. We believe that. Interest rate in those projects will also go down.
Nikhil Dhingra
There is an interplay of two things there. One is the overall macro and the other is the micro of improvement of our we listed last year rating has gone up for all our products for double ed. So both these interplay will take our interest costs further down because as we exist at capital markets and we also understand that the there is an arbitrage between the capital markets and the bank loan market also. So I think as we go more to the capital markets the cost reduction. Can be more and also I wanted.
Dhruv Muchhal
To understand the question was also to understand the RBI rate reduction benefit is already flown out to our numbers in terms of the refinancing or generally some loans have six months, one year that kind of rescheduling. So is that completely, I mean.
Nikhil Dhingra
Not yet flown down to the. To our numbers because you know some of our projects have annual reset and those reset have not yet arrived and we have not really refinanced. So this ISTS project only one out of the four projects have been refinanced yet. So three projects are yet to be refinanced so they are still running at more than 9% interest cost. We, we do have sanctions for let’s say 1% lower than that but we have not activated them because we are trying. We don’t need the extra debt which is being provided by these because we have sufficient liquidity of more than 3000 crores.
So we are timing our refinancing as per the requirement because then then the lenders push us for taking early disbursement which we do want. So there is significant benefit yet to be coming because we have not refinanced yet.
Dhruv Muchhal
Great. Thank you so much and all the best. Thanks.
Nikhil Dhingra
Thank you.
operator
Thank you. The next question comes from the line of Ketan Jain from Eventus Park. Please go ahead.
Ketan Jain
Thank you. Thank you. So my first question around the capacity addition we’ve commissioned around 350 mega over in the first quarter and I think hundred megawatt is near completion. What more can we commission in this year in fib 6 which projects?
Nikhil Dhingra
Yes. So what we are targeting to do other than this 100 megawatt is basically the battery portion of the FDRE plants and also the some of the solar projects also. But the batteries which is our focus area because we are putting a battery at the already charged substations, we have more than 2 gigawatt of centrally connected projects where we are putting battery of our FDRE plants. So you can say all these 3.1 gigawatt hours we have ordered. So our target is to Commission if not 3.1 at least 2.5 GWh of that by this financial year and we will be doing it in phases.
So definitely some component of it will be charged before the calendar year and some portion would be charged before March. So that is our target to revenue basically from a revenue perspective in terms of the CAPEX perspective, the CAPEX for the solar wind all would be done but the charging of those will be done in sync with the commissioning timelines of the CDU substations because those are being done at the new substations, they are not being done at the existing charge substations. So that’s how we are planning.
Ketan Jain
So just to conclude, I mean we. Would be adding 450 megawatt of capacity and around 2.5 gigawatt hours of battery component of the FDRE projects which we can generate revenue from.
Nikhil Dhingra
Yes, that’s what we are targeting.
Ketan Jain
Also I wanted to ask you on A status on PPA 423 projects which is the Sigma orja Omega Urja which are these two are the solar projects and one Alpha renewables which is a hybrid project. What is the reason for delay in signing of these PPAs? Are we seeing any visibility in the near term?
Nikhil Dhingra
Yes, yes. So I’ll give you project by project status on Omega first. So Omega, the state of Madhya Pradesh has already got it approved in the regulatory forum. So it is. The consent has also been received by cbn. So I think because of the administrative things. It is, it is. It is expected to be signed this month because all sorts of approvals are there from state and sgvn. There was so, so this, this should be signed if not in July, maybe in August. This 2.52 there are no hurdles to it as far as we are aware.
Then in terms of the 3 point the NTPC Alpha Renewables 3.3 to 1 that is all that is. That is something which is pending as of now with NTPC but I can tell you which ones we know that are at advanced stage. So this 2.52 is SGVN is at advanced stage. Then you have the hybrid 3.25 of sechi that is again at an advanced stage. This is again gone to the regulator in it is in two states. One is in Bihar and another is in up. So this again should be signed in July sorry August August the renew tech as per our information of course Sechi is reading it but this is what we are aware of.
Then the another one which is expected to get signed is the NTPC one Again that is in discussion with in various states the FDRE one the NTPC 2.53 that is something we are discussing with NVVN in terms of the signing because they are thinking of buying it directly rather than selling it to the pooled basis. So that proposal we are discussing with NVV and they are trying to change the construct of that we are discussing with them and we will update as soon as the discussion concludes. So that’s that’s there. Other than that the the URJA one and Platinum ORJA one they are also in advance with the various states including MP and Chhattisgarh.
So we are quite positive that we should be able to conclude this whole pipeline in another four months and the pace has picked up as you must have seen. 550 megawatt of FDR and solar we have signed and 550 megawatt hours of battery we have signed. So pace has definitely picked up and the various states are now of taking these these powers and of course there is there is a large requirement coming from various states. Not all states are buying so there is selective buying from various states. But the counterparties have gone better at selling these form of power because it has now got standardized and so we should see good traction in this quarter similar to the last quarter in terms of signing of these ppa.
Ketan Jain
Understood. Thank you. Thanks for that explanation. Just one last question. When do we expect our first FDRA project to get commissioned?
Nikhil Dhingra
So the partial commissioning of the FDI plant like we said should happen. The the critical part of the FDA is the battery because solar and wind of course we have we are commissioning in already so many so battery we are trying it will be phase commissioning battery will be signed will be should be commissioned this year partially commissioned. Then the solar will be commissioned let’s say by June or by in that quarter basically June to June to September quarter And then of course it will follow after that.
Ketan Jain
Any, any one particular project which you can say that this project we are targeting like full FTRE commission. Maybe next year. Maybe next year.
Nikhil Dhingra
So yeah, so so basically the whole SGVN project full will be charged. The NHPC will be charged. So there are all of these projects and even the Secchi 150 megawatt which is already signed, that will be charged. So all these projects will be charged next year. The substation timelines are basically staggered throughout the year. So all these projects will be charged next year. How it will be done is these batteries will be charged first and the solar and. And the solar component, because we are primarily doing solar will be charged as per the substation timeline.
So all of them will be charged. Whatever PPs we have signed. See, all the PPs we have signed got signed from you can say till December 24. All these FDRE projects got signed before December 24. So the timeline of them is December 26. So we have not signed in this calendar year any FDRE. All the tenders which we have signed are very recent. One, one. But whatever we signed in December till December 24th will be charged in December by December 26th.
Ketan Jain
Understood. So my last question is on how. The FDR execution going on. Are you facing any challenges since it’s a new concept, how is the execution going on? Just on a qualitative basis.
Nikhil Dhingra
So see re. The only component which is new is the battery, right? So the battery execution wise is very sort of quite only electrical. And of course there is regulatory. Some bit are new. Right. So let’s say we are trying to do early commissioning. So regulatory pieces we need to take NOC from the counterparty, sometimes the NRLDC we need to get approval. So the regulatory piece is. It is new. So you need to take all these approvals which we are taking for the first time. So similarly the procurement again but there are upsides to all of that because once you your base case assumptions are getting better in most cases.
So in terms of the challenges, FDRE is execution wise is not challenging. It is of course the resource estimation. If you are putting a wind. In most of our FDRE there is very little wind component. So the wind resource assessment is a complication which is not execution wise heavy, but from a risk perspective it is heavy which we are trying to minimize by not putting much wind. And the wind also leads to some bit of variability in your generation, which leads to penalties. So that is something we are removing at the outset by reducing the wind component.
So in terms of the execution. See a battery project typically takes a very small amount of land. So the risk in typically renewables are land connectivity and of course the transmission line in terms of the macro involvement. So these things are minimal in a battery plant. So we don’t see that. And the other is the resource variability. If your generation fluctuates a lot, you will be liable to a large penalty that we have reduced by basically putting the same amount of batteries which they want. We are not trying to reduce the amount of batteries by putting relying on wind so that we have removed at the outside.
So we do not see in terms of the interplay and all these FDRE is actually not a. In some cases not a. You can say there is no interplay in terms of co located. Everything is connected to the national grid and there is no linkage between the resources. You just need to charge the battery through solar. That is as simple as it gets. So the operationalization of the whole thing is not technically complicated. It has regulatory and procurement wise some of the things are being done for the first time so. But we are not finding it very challenging.
Ketan Jain
Thank you. Thanks for reading that sir.
operator
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes. Hi, good morning and congratulations on a very good quarter. So my first question is is it. Fair to say that that 2.2 gigawatt which is signed PPSI will get commissioned by FY27N and do you see any delay as of now due to transmission issues or is it too early to say.
Nikhil Dhingra
So? You’re right Mohit, that 2.2 gigawatt will be done by FY27 and it is staggered across FY26 and FY27 the connect. So we are not seeing much delay and the. And the reason for that is we have sourced our connectivity independent of these bits. What we have been telling you also is that we source connectivity prior to the bits so that really dealings the PPS signing to the connectivity timelines. And once you source connectivity early, the commissioning timeline of that connectivity is also early. So the timelines are of course staggered. But we can say that this 2.2 gigawatt is scheduled to be commissioned as far as connectivity is concerned in the timelines you mentioned.
Mohit Kumar
Understood. The second question is of course there’s a huge capex layout for next couple of years and I think there is some gap in the date tie up for the capex plant when you expect the to tie up the entire date for the CapEx for 2.2 gigawatt especially.
Nikhil Dhingra
Right. So we actually mohit are not seeing any gap on the debt side. What we are trying to do is let’s say our project got sanctioned in one of the board meetings of the leading lenders on Friday. We will make an announcement whenever it is public. But, but the thing is that the debt sanctions are definitely on time and of course we are getting multiple offers for each of these projects. So the debt tie up if all of them are kind of in principle sanctioned. What happens is once we take the sanction there is a fee payment which we need to do and there is a disbursement timeline which we need to follow.
So what we try and do is sync up the disbursement timeline with the capex timeline where we actually need to spend money, right? PO ordering is fine but the lenders want to take their disbursement in six months otherwise their debt needs to be revalidated. And so that is why we have not taken consciously the sanction for some of the projects which are getting sanctioned now. So we will be totally tied up in next quarter for all the 3.2 we have actually got debt for a couple of them which we didn’t draw also. So lenders are also cautiously telling us that allow ask us to sanction only when you are taking the disbursement in.
A quarter or so. So that’s all we are doing by defining these timelines of sanctions. But as far as the lines go, we have lines for all of these 2.2 we want and we have underwran debt even in our operational projects, right? You know the lenders give us lines in our operational project so we have more than 1500 crores of undrawn debt for the projects which we have already taken partial disbursements. So that is I think on the debt side we are fairly covered.
Mohit Kumar
My last question sir, did you see any back down in structure in the quarter due to drop in demand especially in May 25th?
Nikhil Dhingra
So see on a macro basis like we said on the industry side there has been a shortage, there has been low demand and all that but we are a PPA 100% PPA company. So when we were selling our one plant in Merchant, right for one or two months before we signed the PPA with Seki which is the 300 megawatt plant. At that time we were seeing the drop in the tariffs because of the lower demand but it was only for one or two months for us because our 100% of capacity is tied up in PPAs so we don’t get the impact of this.
This low demand because of RPP tied up capacity.
Mohit Kumar
Understood. Thank you. And all the best. Thank you.
operator
Thank you. The next question comes from the line of Diana Bokhinala from Dolat Capital. Please go ahead.
Diana Bokinala
Thank you, sir. Am I audible?
operator
Yes. Yes, ma’. Am.
Diana Bokinala
Congratulations on great set of members. My question is on evacuation challenges. So we see more contracted projects that is which have LOA signed of Atmasolar going to come up in Madhya Pradesh and other states right now. Could this be related to evacuation delays in Rajasthan? And do we see the situation improving in these two states? And any idea on the current status of HVDC transmission products as well? That is going to ease the situation.
Nikhil Dhingra
Right? Right. So so basically see Rajasthan is connectivity In Rajasthan in 2026, 27 is not enough for everybody to commission their plants in that state. Of course everybody prefers to put it there because they have the highest GHI and the associated costs are also lower because of the lower land cost and easier execution which happens in that state. And the most dry period for execution you get at all of any state in India. So Rajasthan remains the favorite destination for everybody to put up the solar plants. But you can’t put up all of your capacity there because you need to time up the connectivity operationalization as per your ppa.
So what we have done is we have taken connectivity at we have a cutoff GHI which is the radiation and above that cutoff radiation we match our tariffs to the place we are putting up the solar plant or wind plant at. So let’s say we have tried and taken connectivity only at those places which have the highest GHI in that state. So let’s say a place like Neemanj would have one of the highest GHI zone. Then it’s closer to Rajasthan then closer to mp. So our Nemaj plant is essentially coming in Chittaugarh. It is not coming in Neeman.
So that is how it is. Similarly the other states we have zeroed on Andhra Pradesh and Karnataka. And that Andhra Pradesh project specifically had the seven substations which were supposed to be chosen. And out of those we chose to choose, I’ve chosen the highest THI zone which was in AP out of those seven substations. But of course Karnataka is another state which has connectivity. So you need to actually if you are executing a IPP based portfolio which is selling all the power to the government, it makes sense to block connectivity across the and that has a yearly commitments in terms of the PPAs.
It makes all the sense to diversify across states and it makes all the sense to take plants which are the connectivities which are coming at early intervals rather than later and not tie up yourself with one state because that’s not going to help you commission at a frequent intervals of plants. It is a. It is a very good. And government also doesn’t want you to do that. Right. This ISDS waiver which got expired for solar and wind. There is all intent to diversify the connectivity across India rather than keep it concentrated in generation sources. That is why the government has not extended the ISTs waiver for solar and wind.
So we are moving in line with that direction of the government. In terms of the hvdc. We have taken some connectivity for future in Barmer, Bikaner and also in Ramgarh. So those are lines which are slightly dependent on hvdc. And of course we are not updated on the actual timeline. But it should be. Government is trying to do it prior to 30. We are speaking to the vendors who are doing it. We are speaking to the government. So all the intent is to commission it in 29 or so. But we are not relying on that for any of our projects.
It’s part of the future portfolio for us. It is part of the large scale land acquisition, the government land acquisition, the state land acquisition we are doing. So none of our pipeline is dependent on the HVDC commissioning.
Rajat Kumar Singh
Yeah, I want to clarify here the current, all current projects, what we are talking about. They are not dependent on hvdc. So we have a three category of project. One project which are under construction. All those connectivities are available in 26 and 27. So there we are doing. And they are not dependent on any of these HVDC or new thing. Then we have a second type of project which we are planning for 27, 28. Again we have a connectivity based on the project which will win what we are creating the connectivity for 29, 30 that is different, that is dependent on HVDC that we will participate for those connectivity, connectivity.
We will participate perhaps in the tender this year or next year. Just to clarify.
Diana Bokinala
Thank you so much. Thank you and all the way.
operator
Thank you. The next question comes from the line of Vikram Datwani from Nuvama Institute Equities. Please go ahead.
Vikram Datwani
Thank you for the opportunity and congratulations on a good set of numbers. My first question is in an FDRE project, my understanding is that when there is a partial early commissioning of a project the power has to be offered to the procure at 50% of PPA tariff so the only commissioning of battery in these FDRE projects will yield us 50% of the tariff cost. Is my understanding correct?
Nikhil Dhingra
So just like to clarify, you know, in these FDRE projects the battery is not considered as a source. So the solar and wind are considered as source. And we have taken no objection from the counterparties that this is not considered as a source. It is explicitly mentioned in most of the PPAs. But wherever there is a vagueness, we have taken the explicit NOC from these counterparties because it is not a source, it is just a storage resource. The generation is. If you are commissioning early commissioning solar or wind, then you are liable to pay to the vendor.
Because in this case there is no generation of electricity happening. We are taking it from the grid or and we are not charging any bit of renewable capacity as long as we commission the solar and wind. Then you need to follow the principle you mentioned.
Vikram Datwani
Got it. So that would actually answer my follow. Up as well as to how we can play the merchant market in the early commissioning of the NHPC battery project. Okay, that answers my questions. Yeah. Thank you. Best of luck.
Nikhil Dhingra
Thank you. Thank you.
operator
Thank you. The next question comes from the line of Siddharth from ifl. Please go ahead.
Siddharth
Hi sir. Thank you for the opportunity. So my question is earlier you mentioned that the battery price was 100 USD per kilowatt hour. So is that the landed price in India or the supply cost like the paid to the supplier. And my second question is that the NHPC Vespa which we have signed recently. So is it right to assume that the NHPC we have signed best supply agreement with the other party as well?
Nikhil Dhingra
Right. Right. So on these two questions, both hundred is the landed price. It includes all the duties. And the logistics cost also
Rajat Kumar Singh
includes bos. Also to clarify it, everything.
Nikhil Dhingra
Everything required for putting up the whole project. And in terms of the NHPC project, the none of the BPA gets signed until the power supply agreement is signed with the state. That practice which is always there for each of the bpa. So they are signed with Andhra Pradesh and then only they sign with us.
Siddharth
Okay. Okay. That’s it. Thank you sir.
operator
Thank you. The next question comes from the line of Raman KV from Sequent Investments. Please go ahead.
Raman K.V
Hello sir. Hello sir, can you hear me?
Nikhil Dhingra
Yeah.
Raman K.V
So my understanding is because we are doing a huge in the coming two years in FY26 as well as FY27. So our debt portion will be substantially be increased. So can you give an estimate how much about how much debt can we expect by this Year.
Nikhil Dhingra
Right? So see capex is financed 75, 25 in terms of debt and equity for us and typically what we have seen is post capex we get revenue within eight to nine months of that CAPEX weighted average CAPEX being done. So in terms of this financial year our capex target is close to to let’s say 14,000 crores but it may but the weighted average so the debt for that would be around 11,500 crores but that debt will come towards the end of the year because in this quarter like we said we did only 800 crores of capex so it is completely back ended so the weighted average debt will be much lower than the addition of the debt will be much lower than the capex because typically we spend the money just one month before the dispatch of the product so the whole designing period, whole you can say the ordering period the CAPEX is different.
So from the delivery to the operationalization that is our efficiency comes wherein we try and operationalize the plant immediately post the key equipment arrival at the site so the whole site is ready before the key equipments come. So from the CAPEX to the revenue typically as I said our effort is to get it done in six, six months not more than that. So that’s how. So the debt will not be addition weighted average will be much lower than 11,500. It will be, I can’t say the number right now but it will be much lower than that.
Rajat Kumar Singh
And also because the as Nikhil explained earlier the debt will be largely coming in terms of LC payments which will happen towards the FAG end of the delivery when the just before the commissioning happens so the impact on the overall debt and the interest cost will be lower. And also during the construction phase the. IDC has all capitalized right so only.
Nikhil Dhingra
When the revenue starts generating the interest. Cost hits the payment. And one more thing, during LC phase we are trying to take bias credit also so that will reduce the cost during consumption construction period because you know the period the interest rate is slightly higher than the operational period we are trying to reduce it. We have done it in the past. Also by taking buyer credit and the equations and that is why we are trying to get banks also as a part of our lending portfolio because the banks are able to offer you those products in a far agile manner so that will reduce our operational debt cost Sorry under construction debt cost also sir.
Raman K.V
Going forward with the impact lensing part which you earlier mentioned can we expect the debt quarterly index cost quarterly run rate of 200 to 220 crores each year and in the coming year in FY27 around 400 crores because by then your 11,000. 11,000 crores of death will also be taxed.
Nikhil Dhingra
Yeah, broadly you are right. Broadly you’re right. It could, it could be around that but it should be lower and gradual because let’s say if we are able to load up that much of debt then the capex would have happened. And of course the, and, and the capex there is some bit of reduction possible and as you see the, the, the prices have been lower than our estimates. So there could be a slight or substantial reduction in this number. But yeah, directionally your matches is more or less in the right direction.
Raman K.V
So and my second part of the question is with respect to the BESS segment with the current delay can we expect this 200 megawatt PSS 70 to be coming Q3 and what is the optimum utilization? What kind of revenue can it generate.
Nikhil Dhingra
In terms of the new NHPC contract you are talking about or the early commission?
Raman K.V
Yes sir, NHPC tender.
Nikhil Dhingra
So NHPC tender is not a large revenue project of course it’s, it will generate a at its peak around 70 crores of revenue. So that is the annual revenue and it is of course we have 18 months from let’s say June. So, so we have that much timeline. But we are all for early commissioning of this plant and we are working with the Andhra Pradesh government to get their, get their readiness with us. Then we can easily commission it once they give us the go ahead we can easily commission it within six months. So that’s much level of preparedness we have.
So we are waiting for them to give us the notice to proceed basis their readiness because we don’t want our equipment to come and they are still sorting out their bit of work. That is what we don’t want to do. No, actually we are not putting that Q3 this plant we are putting the FDRE battery as Q3 and Q4 and not just battery optimization and how much. The FDRE battery revenue potential will be on the same night. It will be slightly higher because it will be actually quite higher. Sorry because in a NHPC tender you are constrained by the bid you made and it’s a 15 year long contract. So, so this is a levelized lower tariff but as we mentioned in replies to one of the question the unit rate for a peak power in India because you are free to sell in whatever hour you want to sell. So you choose the highest paying hour and there the tariffs are around nine rupees and the charging cost is much lower for the battery as you know because you can see the tariffs which are prevailing for charging cost.
So there will be a much higher revenue purely from on those, much higher than this number of an hpc. And the quantum is also much, much higher. Like we said, we are going to charge 2500 megawatt hour of battery whereas this project only has 550 megawatt hour of battery. So it’s a five times larger commissioning. And, and the, and the revenue and profits are also substantially higher.
Raman K.V
So it’s like five times more. What’s the peak revenue? I just wanted to understand. So we don’t want to worry about.
Nikhil Dhingra
Yeah, yeah, yeah, yeah. I give a guidance on that since it’s a merchant based project. So it’s all part of our upside plannings. It’s something we have preponed. Right. And, and we are doing it on our best effort basis and we are because all these approvals and everything we are trying to do. So we will be able to give you guidance but that is not happening today.
Raman K.V
My final question is with respect to the guidance long term, with respect to FY26 and 27, how much growth are you expecting to see across all the world?
Nikhil Dhingra
So see that is also a function of what we just spoke about in the previous reply. So like we are trying to commission these battery projects which is the component of the fdre. Then we are commissioning the FDRE projects. So I think most of the research analysts have, I have done the math. So I think depending on these commissioning we will be meeting those, those, those revenue target because our PPA is tied up. Right. Our costs have some upsides. So I think that is what you can expect. It is a timeline which we have spoken about in various replies that FDRA will be commissioned by this time.
The battery will be commissioned by this time. I think I’ll request you to put up these puzzles together and if you have any questions we, our team will be able to take up in detail.
Raman K.V
Thank you sir.
Nikhil Dhingra
Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of time. That was the last question. I would now like to hand the conference over to Mr. Manoj Kumar Upadhya, Chairman and Managing Director for closing comments. Thank you. And over to you sir.
Manoj Upadhyay
Thank you all for asking a very, very relevant question and thank you to the entire team that they have delivered. A very good performance. As you are all aware that Techni is known for innovation and technology. So I wanted to brief you and I saw some of the question also. You all have Touched on. I would like to share with you that last week we finished five years of continuous testing of the FDRE which is the battery solar and the grid together. And we were able to test the battery degradation. And I’m very happy to share with you they were very well within a limit what we have thought of of five years of continuous testing. We were also able to test the power electronics reliability because they had to interact with the grid.
And we correct. We selected the very poor grid to interact because normally our grid in. In the. In the. In the FDRE is connected to 400 or 220kV. They are very, very stable grid. But we wanted to abuse this, abuse the testing. So we connected to 33kV and tested all the variation possible in this one. And I’m proud to share with you that it worked very well for so many years. Third is we also wanted to test the charging and discharging efficiency of the battery. And again I’m proud to share with you that those testings were well within the GEM cells.
And that also shows the battery can last for five years, 10 years as it is in visage. And also it is important in this one the how the automatic grid interaction with energy management system will work. For last five years we are operating in manual and automatic. Both the mod manual mod is when you are able to schedule based on the customer need. Automatic is that when you are able to schedule based on the frequency need when the frequency in the grid goes down. We were able to test all this and that will help us to really that learning to put in the.
The big project installation. As I shared with you in the last quarter that apart from this we are also installing 10 megawatt hour battery. Perhaps in next two months they will become operational at the 2. They again will go through the testing by the time our bigger project will get commissioned. So all these things we started small, we test it and then we take the position in the big one. So we are continuing this process and we should be able to share with you in next 2, 3 months that the result of evening even in the second stage of the testing before the final installation happen in November, December or January, February the third.
What is also important in this, in this our business is as we are seeing more and more solar installation. The radiation and the land, these two things have become very important. So technically what we are finding is that higher radiation zones slowly if they get diminished, what we should do, how do we optimize it? So ACME started working on new configuration where we believe from the next Project onwards, we should be able to reduce our land requirement by 15, 20% time, which means that existing land in the high radiation can accommodate 15, 20% more solar.
That will help us, I mean our further generation. And this is what known for and we will continue to do that. The third thing I think the technology. We started with a very small testing of few hundred watts of perovskite. Now we are happy with the performance. Now we will be moving the second level of the perovskite testing, maybe 50 to 100 kilowatts, which we should be doing in next three, four months, and then moving to the bigger level. That will also show us that when silicon is moving towards perovskite, what kind of operational efficiency, especially in the morning and evening hours in the low light condition, we will gain it.
And we’ll keep on updating you as we finish our testing in the process. So, apart from the operational performance cost focus, innovation is the key to apni and we will keep on maintaining to that. Thank you again. Thank you again for having patience and listening to us and I look forward for your supports. Thank you.
Nikhil Dhingra
Thank you. Thank you very much. Thanks.
operator
Thank you. On behalf of Daulat Capital Markets Private Limited. That concludes this conference. Thank you for joining with us. And you may now disconnect your lines. Thank you. Thank you.