Acme Solar Holdings Ltd (NSE: ACMESOLAR) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Rajat Singh — CFO
Nikhil Dhingra — Chief executive officer
Analysts:
Unidentified Participant
Abhishek Nigam — Analyst
Aniket Mittal — Analyst
Mohit Kumar — Analyst
Akash Mehta — Analyst
Apoorva Bahadur — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Acme Solar Holdings Limited Q3FY26 earnings conference call hosted by Motilal Oswal Financial Services 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 this 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. Abhishek Nigam from Motilal Oswal Financial Services Limited. Thank you. And over to you sir.
Abhishek Nigam — Analyst
Yeah. Thank you. Morning everyone and thank you so much for joining in. And on behalf of the company, we have with us today Mr. Manoj Kumar Upadhya, Chairman and Managing Director, Mr. Nikhil Dhingra, CEO, Mr. Rajat Kumar Singh Group CFO, Mr. Ankit Verma, Head of Corporate Finance and Mr. Aril Chopra, Head of Finance and Accounts. And now without any further delay, I’ll hand it over to the management for opening comments.
Rajat Singh — CFO
Good morning everyone. Thank you all for joining us today. I’m Rajat Kumar Singh Group, CFO of the company. I am joined by our founder and chairman, Mr. Manoj Kumar Upadhya, Mr. Nikhil Dingla, our CEO, Mr. Ankit Burma, head of corporate finance and Mr. Arun Chopra, head of Finance and Accounts. It is my pleasure to share the highlights of our Q3 performance. So I would like to start with sector highlights and their implications on us. India continues to maintain strong momentum in capacity addition with 30 gigawatt of solar and 4.5 gigawatt of wind addition in nine months ending FY26 taking cumulative renewable energy capacity to 258 gigawatt.
Further, power demand rebounded sharply in December 25th with energy demand at 138 billion units. A 7% year on year increase followed by subdued power demand during April to November 25 when energy demand was flat on account of early monsoon. We expect the demand revival to continue going forward resulting in increased PPS signing. Further, China has announced withdrawal of VAT export rebates for solar products and phase withdrawal of VAT export on batteries from April 26. While this represents a policy shift, the impact will ultimately be governed by supply demand dynamics which we expect to remain favorable for buyers.
Against this backdrop for our FY27 plan, contracted capacity of 1.5 gigawatt. We have already procured 1.7 gigawatt peak up modules and a large amount of BSS within the budgeted cost covering about 50% of module requirement and entire BSS requirement which doesn’t have any impact of planned VAT reduction in China on the orders procured there is a saving of more than 10% in the overall CAPEX from the budgeted cost. We are pleased to inform we have signed order for additional 5 gigawatt hours of BSS within the budgeted cost. So marginal cost for procurement done post VAT announcement done in China for both modules and battery is well within the budgeted cost.
Therefore we don’t foresee any impact on budgeted cost of Chinese announcement on curtailment There are two kinds of curtailment transmission linked and grid stability related. We would like to assure you there is no impact on revenue from grid stability based curtailment on ISTS side as it’s completely protected by GNA regulations. There is only transmission infrastructure related curtailment due to in process transmission links which is temporary. This doesn’t impact any long term GNA holders as once granted the there is no impact of such curtailment for us. We faced one time curtailment loss of about 17.5 crore in our 300 megawatt seeker project due to operations under temporary GNA during the quarter.
Excluding this curtailment across the remaining portfolio was negligible less than 1 crore reflecting the overall robustness of of our assets base. Thus in all there was less than 1% of loss of annualized revenue due to curtailment. Importantly now with commissioning of Narila Khetri Line with effect from 14th December 2025, Acme Seeker is operating at full capacity without any curtailment. Now coming to our company’s performance during Q3 to date we commissioned 72 megawatt of wind capacity taking our total operational portfolio to 296.2megawatt with EBITDA to CAPEX yield of approximately 14.5% cumulatively with 422 megawatt commissioned year to date, we remain firmly on track to achieve our FY26 commissioning guidance of 450 megawatts with a balanced 28 megawatt at advanced stages of construction.
Further, as highlighted in our previous earning calls regarding the operation of 1 GWh of BSS on a merchant basis in Q4FY26. We are pleased to upgrade this guidance to 2 GWh of Bass becoming operational in this current quarter and additional 2 GWh of hour in the Q1 of FY27. Towards this 1150 megawatt hour of BSS has already been delivered at three sites and is at advanced stages of commissioning. With respect to our under construction capacity we have committed total capex of 8200 crores which includes capex incurred of about INR25.50 crore and purchase order aggregating to about 5700 crores.
Also connectivity is available for all under construction projects including unsigned PPAs. We signed PPAs of 450 megawatt capacity which include 200 megawatt of solar plus ESS with Seki and 250 megawatt FDRE project with NHPC taking our PPSI portfolio to about 2.7 gigawatt. The 250 megawatt FDRE NHPC PPA has been signed yesterday at a tariff of rupees 4.33 per unit and is allocated under the Green Shoe option. Also we won 130 megawatt round the clock project at a tariff of INR 4.35 per unit with IEMC Limited expanding our under construction portfolio to 4.8 gigawatt. This project is for procurement of power by Indian Railways and requires a minimum annual availability of 75% for the first three years from commissioning and 85% thereafter.
The tariff discovered demonstrates the competitiveness of renewable over thermal power generation at competitive price. With this addition our total portfolio stands at 7770 megawatt including 16.0 gigawatt hour of BESS capacity and 5630 megawatt of PPS signed capacity. Now coming to our financial performance, our total revenue for the quarter stands at rupees 617 crore, a 54% increase year on year driven by capacity addition and higher CUF. EBITDA margin of 91.5% in Q3FY26 as compared to 89.6% last year on account of favorable operating leverage and optimized operational efficiency, PAT stood at rupees 114 crore with a margin of 18.4%.
Also we generated cash ROE of 20.6% for December 25 driven by higher cash patients following operational capacity additions. In terms of balance sheet strength, our net operational debt to EBITDA stands at 4.2 times. Net debt to net worth stands at 2.2 times. Net debt to Net Worth stands at 2 times. Coming to our debt optimization efforts through successful refinancing efforts and credit rating upgrades and across parent and subsidiary levels, we have reduced the weighted average cost of our debt of our operational portfolio to 8.45% per annum down by over 100/5 basis point from December 24.
Also, the weighted average cost of debt for entire outstanding debt covering operational and under construction projects stands at 8.6% per annum. As of debt, debt has already been tied up for more than 90% of PPAs signed under construction portfolio. This one excludes 250 megawatt which we signed yesterday. On credit rating front, our 2.5 gigawatt operational rated portfolio 75% is AA category and balance is A category underscoring the continued strengthening of our credit profile. Now at last coming to operational metrics for the quarter we generated 1567 million units up over 49% year on year our cum improved to 24.3% from 22.7% last year.
Further our grid availability and plant availability stands at more than 99.5%. Now at last I would like to briefly outline our strategic priorities till FY27. As part of our capacity build up plan we intend to execute approximately 1.5 gigawatts of contracted renewable capacity in FY27 and more than 10 gigawatt hours of BSS commissioning by calendar year 2027. In terms of execution readiness for FY27, debt has been secured for almost entire capacity. Land acquisition has been completed for majority of the projects, connectivity is fully secured and majority of modules and BSS capacities have been ordered and have started delivering at sites and getting commission in phases.
This level of preparedness gives us strong visibility on timely execution and disciplined capacity addition. As a strategy we are fast tracking BSS installment of 10 gigawatt of our FDRE projects by calendar year 2027 to unlock value early 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 and avoiding execution and write of way challenges. This approach is expected to enable early cash flow generation while ensuring seamless integration of BSS with the respective FDRE projects upon full commissioning where they will continue to operate under long term PPs for 25 years.
PPA signing continue to remain a key focus area with near term visibility of approximately 770 megawatt. This includes invitation received for signing of 130 megawatt REMCL, PPA and PSA consent secured from the DISCOMs for 640 megawatt with the regulatory approvals at an advanced stage. Further, as a measure of readiness we have about 7.5 gigawatt of secured and applied connectivity inventory available for upcoming bids over and above existing portfolio coming live in phases till FY33. Also we’ll focus on winning new Projects that meet our threshold return criteria to progress towards a target of 10 gigawatt operational capacity by 2030.
With that, I now open the floor for questions. Our team would be happy to take them. Thank you very much.
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 telephone. If you wish to 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, we will wait for a moment while the question queue assembles. The first question comes from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead.
Aniket Mittal
Yes, in your opening remarks you mentioned that there has been some increase in the marginal cost of procuring modules. If you could just quantify that in the current environment what is the cost of procuring modules now? And accordingly what would be the capital cost for us to set up a solar project?
Rajat Singh
Right, Right, Aniket. So like we mentioned there is a, there is a withdrawal of the rebate which is different for modules and which is different for battery. So basically what we are seeing is there is a marginal increase in the prices of cells because right now for our projects we need to only procure cells from there. Rest of the BOS is all from India. So there is only impact on the cells to the extent of, you can say around on overall module cost it not more than one rup. Basically the impact of this change is only one rupee.
If you look at the landed cost of modules for us because there are, there are, there is a China procurement, there is a FT procurement so suppliers are able to supply from either of these and we look at the overall landed cost to us which is not more than one rupee and from our budget it is let’s say less than by 1 1.5 rupees even after this increase.
Nikhil Dhingra
Now the other thing it is important to share here 50% we have already precluded which was where this 1 rupees was accounted for or it was not there. So technically 30 to 40% of our additional capacity, this one one rupee will be applicable.
Rajat Singh
The other thing is in terms of the, the impact usually we have seen in the past, this kind of impact happens at the transition phase of the procurement. What, what we also do is we procured quite a lot of modules before March. That is the, we expedited our orders and we have lined up deliveries for quite a lot of modules. PR and of course there will be a Disruption and there is a Chinese New Year coming up in February. So usually we see that these kind of disruptions are caused to increase prices of Chinese products which basically even out as we go in supply and demand.
Because ultimately this is all driven by their regulations. There is no change in their supply demand dynamics. So this is temporary because there is of course a glut there and we don’t see this impact of even one rupee lasting for more than a couple of months.
Aniket Mittal
Okay. Just to understand from an overall capital cost perspective what would be the capex or megawatt on which you can set up a solar plant on the current prices.
Rajat Singh
So it was let’s say around 3.3. It would have gone to 3.35.
Aniket Mittal
Yeah. This is on a DC basis.
Rajat Singh
Yeah, on a DC basis here.
Aniket Mittal
Okay. And this is, this includes of course every cost.
Nikhil Dhingra
Yeah, all the cost.
Aniket Mittal
And so just to clarify again this is for a non tracker system?
Nikhil Dhingra
Yeah, yeah, we don’t do no trackers.
Aniket Mittal
Just you know one more question was you know our wind project has, has delayed quite a bit and while you’ve been commissioning it’s taking us some time to commission. Could you just highlight on that, you know when do we expect this project to get completed and the reason for delay?
Rajat Singh
Sure, sure. So wind project is expected to be completed in, in February, early part of February. So the reason for delay was there was a sign mining sort of sand mining ban in Gujarat which was there where due to which you could not take the, the, the sand from the neigh this in the last phase, in. The last couple of months. But of course we have overcame that kind of issue and we have been able to build it within the, within the timelines. It basically in terms of pathways and the rains. Of course there were extended rains last year which again impacted the timeline because we have basically seen that the pathways construction is almost like a right of way construction in wind which is like building a transmission line in solar. So it takes time and, and of course we got extension also because of these reasons and we are building within the those timelines.
Aniket Mittal
I got that. I’ll join in the queue for follow ups. Thank you.
Rajat Singh
Thank you.
operator
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes, good morning and thanks for, for the opportunity. My first question is on the 250 megawatt you signed yesterday. Is this 250 megawatt is part of. The NHPC where you have signed the. Green shoe capacity and can we expect this entire capacity Commission in the F28 and related question is have you given any discount on the initial numbers? I think the rate was 4.56. Right. Not wrong.
Rajat Singh
Yeah. So just to answer your three questions, the first two are yes, the Green shoe is part of the original capacity allotted and of course it is expected to be commissioned in FY28. Definitely. And of course on the tariff discount. Yeah, there is a discount because the, the, there is a. There is a impact on the ISTS charges. It could be there for discomfs because of the delay in PPA signing. So there is discount there which is to factor in those charges which the DISCOM may face.
Mohit Kumar
Have you got the DISCOM approval or DISCOM PS assigned for this?
Nikhil Dhingra
Yeah, yeah.
Rajat Singh
See the process is that the PSA gets signed between NHPC and DISCOM and then the PPA gets signed between the NHPC and us. So both of these activities have been completed. The only thing pending is the regulatory approval from Punjab Regulator and also similar thing from the crc. But the PPA has been signed with with NHPC and the PSA has been signed between Punjab and NHPC.
Mohit Kumar
Understood. Can you please help us with the. COD for 680 megawatt and 190 megawatt FDRE projects?
Rajat Singh
Right. So in terms of the 190 megawatt projects we are targeting FY27 for the project and for the NHPC projects it is FY28 and these are in sync with the, with the substation timelines at both these projects.
Mohit Kumar
Understood. My last question, sir. How do you see the impact of. The new DSM regulation which are going. To kick in from April 26th and our preparedness as industry?
Rajat Singh
Yes, yes. So there is a lot of deliberations happening on this DSM regulations at all the industry forums, at the Power Ministry, Ministry, at the Renewable Ministry and it is a matter of high discussion and all the top decision makers are apprised of the difficulty which the wind projects primarily may face more than solar. And of course the thing is you can overcome this. Of course it is coming in phases. There is, as you know, it is coming in phases till 2030. The thing is with batteries coming up the overall instability caused by renewable power will reduce.
So there is a lot of emphasis on installing batteries on the existing plants. So that is Power Ministry and MNRE are together working on resolving this issue. There are a couple of solutions being floated around. One is that making it prospective and not retrospective. The other solution is being contemplated is to install batteries at the existing plants to take care of the UNPREDICTABILITY of the radiations and these wind flow. So and of course allowing that excess battery to be sold in merchant to compensate the developer. So different solutions are being worked out for wind and solar and also looking at the prospective implementation.
So this is something being happened in terms of solar, it has a much lesser impact as compared to wind. And the other thing is it is not impacting on the battery based projects because they don’t have such problem.
Nikhil Dhingra
Yeah. So it is also very important to note that, that most of projects in Rajasthan they are all being fitted with the battery. So technically in all those projects there will be hardly any impact because the battery will be able to take care of that.
Mohit Kumar
Understood, sir. Thank you. And all the best. Thank you. Thank you.
operator
Thank you. The next question comes from the line of Akash Mehta from Canada HSBC Life. Please go ahead. Yeah.
Akash Mehta
Hi sir, thank you for taking my question. Hey, first, first just wanted to check in terms of the battery in terms of capacity addition of 2 gigawatt hour that has happened, how much, I mean in terms of profit, if you look at the run rate is about 2,000, 2,100 crores. Right. In terms of operating profit. So how much this could kind of the battery projects would have had in profit? If you just help us understand in terms of 1 gigawatt hour, if you sell it at merchant in terms of next couple of quarters.
Rajat Singh
Right, Right, right. So 1 gigawatt hour of battery results in around 170 crores of EBITDA if operated for 12 months. And, and this is assuming a 5 rupee arbitrage between buy and sell price. So that’s the broad match.
Akash Mehta
Okay, I think that’s quite helpful. And if you, I mean next, I mean going into fiscal 27, you mentioned 1.5 GHz will be added.
Rajat Singh
Right. I mean for Acme. In terms of battery in FY27 we plan to install around 4. FY27. It’s around 4 GWh and CY27, 10 GWh. No, in terms of total capacity addition. I mean, I mean in terms of the overall plants. Yeah. So FY27, 1.5 gigawatts of contracted capacity we will install and battery addition is, let’s say you can 4 gigawatt hours in FY27 and which is of course in some cases part of the project, in some cases Merchant and around 6 GWh more in rest of the CY27. So 1 1/2 gigawatt of capacity which is scheduled for commissioning in FY27 will require roughly battery capacity of roughly 3.3.
Nikhil Dhingra
GWh and over and above.
Rajat Singh
Anyway this will get installed and be integrated to API projects and over and above roughly 1 1/2 to 2 gigawatt. It further get installed.
Nikhil Dhingra
So these are a 1.5 gigawatt mostly FDRE. So they technically will be 3, 3 1/2 gigawatt of solar, some 4, 500 megawatt of wind and 3, 3 1/2 megawatt hour better gigawatt hour of battery.
Akash Mehta
Okay, I think that’s fair. So this, this will come in quarter. This is more of first half or second half. I mean if we just help us with that.
Rajat Singh
Yeah, basically. See this is basis the connectivity timelines for each substation. So yeah there is, it is coming actually in very in in. There is some capacity which is coming up in the first around Q2 of FY27. So starting from Q2 these will all come up.
Aniket Mittal
Okay.
Rajat Singh
Of course in battery installation will happen from this quarter only. But in terms of the full project commissioning u fdre commissioning that will start from Q2.
Aniket Mittal
Okay. And lastly on the industry level have you seen any pickup in terms of the PPA signing? I mean they’re existing around 40 of PPA that’s there in the system. But I mean what’s your view and how much time it will kind of take to for the market to kind of absorb this?
Rajat Singh
So see every, every everybody is trying to make an effort to streamline the takeoff and of course as we demand has gone up so of course there is there are a couple of elections also coming up. So we will see that there will be a takeoff in terms of the PP at the industry level. Couple of reasons for that. One is that the bids are now coming with the demand centric bids and there is a lot of reduction in the new bids which are coming which is of course increasing the demand for the existing PPAs.
The other thing with existing PPAs is they are to be done with Chinese cells. And of course the the which a developer is able to offer is a competitive and also the ISTs waivers because the connectivities tagged up with these projects are coming up early like 26, 27, 28. Every state wants to take benefit of the ISTs waiver charges because it’s a very tangible number. So there is an incentive inbuilt in these bids for the projects to take up. And of course now with streamlining of RIYAZ which is being contemplated wherein no competing bid for an existing bid will come up which will further increase the.
Further increase the takeoff. Because what happens is one riak comes up with a bid which is undercutted by another bid which is unlikely to happen in the future. So that is why we will take off. As far as we are concerned, we have a near term visibility of we have signed PPAs as mentioned in our presentation and we have near term visibility of 770megawatts. We have signed around 450megawatt this quarter. So. So as you can see we are an example of that that these PPA’s are happening and of course it will happen. What happens is states are trying to aggregate large procurements.
They are doing it in phases because quite a bit of pipeline is there, like you rightly mentioned, 40 gigawatt. So everybody picking and choosing in terms of what they want to buy. Most of the states have peak power requirements so they are trying and fit their peak power requirements along with the available pipeline. So we think that there will be a good takeoff in the next one or two quarters because there has been quite some time where people have deliberated each state and there are large states, you know, five, seven states which are likely to buy.
Aniket Mittal
Answers my question. Thanks a lot and all the very best.
Rajat Singh
Thank you.
operator
Thank you. The next question comes from the line of Apurva Bahadur from IFL Capital. Please go ahead.
Apoorva Bahadur
Hi sir, thank you for taking that question. I had a query around the battery commissioning. When should we expect the first best to be commissioned? And secondly, will it be modular as in like solar modules? Can we keep on adding those containers and probably start operating them parallel or do we have to require for a site to reach a critical size before commissioning it?
Rajat Singh
Thank you for the query. So basically it is modular. We have already taken CA approval for around far more than 580 megawatt hour of battery commissioning. So it will be we are doing it parallel execution at three sites. So you will see that each of these sites there are one gigawatt hour plus of installation at two sites and one side is around, you can say closer to a gigawatt hour. So at each of these sites we will take them to the 4 gigawatt hours which we spoke about in the next you can say six to nine months starting from this month February, starting from February.
So it is modular. The only thing which you need to do is just call we need to take the CA approval which we have taken. We can do in phases. There is a seven day prior notice which you need to give for the approval. It is completely modular. What you need to have is basically the transmission infrastructure to enable the supply of power which we have at all places. So the long lead item which is required which is the transmission connectivity which we have at all sites. So that is rest of all is modular. The battery, the PCs, the electrical infrastructure.
That is all modular.
Nikhil Dhingra
So we are starting with the 500 megawatt hour as Nikhil mentioned. So every three sites the capacity is around 100 to 150 megawatt to start with. And we’ll keep on adding more and more batteries as they are coming on the site. And in this process we have to just inform CEA to come and visit at every time when we add just.
Rajat Singh
To add on this we have 1.2 GWh lying at our sites out of which we have taken approval for only 600 odd megawatt hours. So you will see that we will take more and more because it is all modular and of course it is helpful for the grid. So. And we have got approvals also the connectivity approvals. But of course since we are doing the charging at large scale. It it is. It will be done in phases.
Apoorva Bahadur
And sir will be charging these using the merchant power.
Rajat Singh
Yes, yes. For. For timing. Until. Till our time our FDR plants come up. We’ll be charging using much in power. You’re right. During solar hours.
Apoorva Bahadur
Sure. Also quite commendable. I think we managed well on the curtailment side. Industry has been suffering. Would be curious to know about this revenue recovery on CTU curtailment. Who will pay? Is there a clear structure that a discoms need to pay? Even if it’s a. It’s a grid stability related curtailment or there’s any other mechanism. Secondly, are we receiving those payments or sitting in our receivables?
Rajat Singh
So we are receiving those payments. The how it works is this is part of the ancillary regulations of. Of the transmission guidelines. What it means is that for. For. For the stability of the grid they can do a trans down. Basically what it means is that for the grid stability if the CEO or NRLDC chooses to adjust your power, the state can’t adjust its schedule. State has to get the same amount of units it was supposed to get. And it has to pay because it has got those units. It has to pay for it. So there is we.
And we don’t have to adjust our schedule. We are also paid as per our schedule. They didn’t end up and both sides are therefore supplying and they are taking and we are bill does not get adjusted because this is done purely to Adjust the grid stability. So there is a very clear regulation nobody wants. The state doesn’t know that we were being curtailed also because this is completely done at the central grid level and the state has no involvement in this whole transdown scheme.
Apoorva Bahadur
Sure. Answer where we are connected to the state grid. How has been the situation on curtailment?
Rajat Singh
So state grid of course we are, we are trying to get the similar regulation done in their transmission rules because generally what happens at the state level the transmission and Genco both are run by the owned by the state government. So there is a common common officer or the regulator who is taking care of that. So there is actually a very minor curtailment which happens in the state which we have mentioned that it was around less than 1 crore on the state level portfolio. So there also the regulator is sympathetic to this cause because the now states also have significant solar assets which are also impacted and they are trying to put a lot of batteries at state level as you know with the VGF which is coming up at the state level.
So we see this again as a temporary problem because states have aggressively picked up the batteries so there will be less inability. They will have to. Adjust their grid. So there is an impact in Rajasthan but which is very minor and of course we are trying to solve it. Regulatory and states are themselves trying to. Solve it through batteries.
Apoorva Bahadur
Okay, okay, fair enough. So last question from my side and this pertains to the other entity, promoter entity which, which houses the green hydrogen business. Understand that we have one, a couple of SECI options. Any update on that? As in how should we expect the build out over there? And secondly, will there be any sort of arrangement between ACME Solar and Acme Clean Tech of sale of power and how would that work?
Rajat Singh
Right. So see we have, we have won the option. And of course there is, there is that GAPA which is going to get signed. So it is of course not yet signed and there will be, there’ll be in a quarter or so it may get signed. In terms of the. So they will make their own arrangement regarding power in terms of the power. So there is no requirement from our side to supply that power. Of course they will be buying through various mechanisms including procurement from RIAs, including their own CapEx and maybe from CNI because it will involve some bit of connectivity sharing.
So that’s the broad. We have not yet evaluated in detail whether it makes sense for us to supply or not. So we will be able to tell you once we make that analysis. So right now there is no plan to supply to them for that power. Because there are certain regulations which we also need to see, they will need to see in terms of, in terms of the EOUs, in terms of the, in terms of the NFV. So it is evolving space because there are a lot of regulations which are enabling the green hydrogen today in terms of transmission waiver, in terms of these export oriented units.
So I think that regulatory framework is still getting frozen. So they have not yet of course there is a lot of connectivity available with them so they, they can do their own power also. So there is no decision as of now whether we will be supplying or not because we have our own CAPEX plan, we have our own sort of demand coming up from the utilities. So there is no decision that we are going to supply to that company.
Apoorva Bahadur
Understood, sir, thank you very much.
operator
Thank you. A request to all participants, please restrict your questions to two per participants. For more questions, please rejoin the queue. The next question comes from the line of Dhruv Muchal from HDFC amc. Please go ahead.
Mohit Kumar
Yes sir, thank you so much. I had a structural question on the curtailment thing. We understand how it happens and all those, but. So the point is assuming that India keeps adding about 25, 30 gigs and probably even more annually and your demand goes by about 1215 gigawatt on an incremental basis, there is an excess of solar supply every time. Probably batteries will address it to some degree. But then there could be timing issues, the cost issues and multiple issues. So it seems this curtailment thing, unless I’m wrong, this curtailment thing could be a bit structural.
So just wanted to understand is it fair to assume a 5 or probably 10% impact on revenue because of, of curtailment for future projects or you already build that in when you forecast in terms of how your IRRs are going to get built up or the whole understanding itself is wrong.
Rajat Singh
See Dhruv, you are right on the numbers in terms of the structural, but how it works is the regulation. Basically it’s a regulated sector, right? So you are right in terms of the, in terms of the, in terms of the, let’s say supply, demand, maths. And of course there will be an impact of battery which you rightly said. It will be adjusted. But the thing is there is a difference between curtailment and payment. So in terms of our revenue because of the regulations there is no impact because this was made keeping in mind the must run status of renewables, keeping in mind that the revenue need to be paid because nobody is at fault here in Terms of the developers. So there will be no revenue impact of course on the net and the states also. And the buyer will get whatever units they are getting because it’s at the central grid. It is not a one to one correlation between the supplier and demand.
If it was a one to one correlation and we were not on the national grid, let’s say it was a CNI thing which is the buyer is curtailing us. That is not the case. It is a grid stability thing. So even despite this supply demand there will be no impact on the revenues.
Nikhil Dhingra
Now the other thing I think you should know DHRU that the government is adding government and state. Central government and state both are adding large amount of the bank batteries. And these batteries what they are doing is as you rightly said, 12 gigawatt even if you add 25 gigawatt of solar, if you add enough battery, technically it is a 6, 7 gigawatt of around the clock power. So what most of the states are doing, they started with 2 hours of battery, they now 4 hours of battery.
Rajat Singh
Now they are talking of 8 hours. 10 hours of battery as the battery price have come down. So you will see that more or less they get optimized. And the government is also thinking this by giving them this vgf. So from the central government instead of building additional transmission capacity they found out that giving this VGF is for the battery will what will happen is it will also create additional capacity from existing grid. So in terms of the two facts, the power grid is also building the ancillary batteries on a large scale. They have come up with a tender for in south. They are building their battery power grid is also has a plan to put batteries and NEP as a 300 gigawatt hour plan by 2030 for the battery. So of course everybody is aware of this issue. But as far as we are payment is concerned that is not at risk.
Mohit Kumar
Sure, just extending. Sorry to just extend this a bit. I understand the batteries will happen in this but the only. The only risk that we see at least from a few years perspective is that the bit that we have seen in batteries are extremely probably for the external guide seems that extremely some of the players have bid extremely low. And given how the battery prices have changed, some of these bids might not actually convert to physical assets. And that realization will happen over a period of time and the states will then rebid and all those things will happen.
So this creates a timing gap probably I don’t know, two years, three years or probably it can be lower. So during the timing gap can this be a thing? I understand you are assured because of the cut, because of your payment and there is a difference between, between dispatch and cut and the OP payment. But if the quantum keeps on increasing, do you have a pushback from the system that this is too much now we can’t handle this. So just trying to understand how this system works.
Rajat Singh
No, of course, of course it’s a very valid problem which see there is a lot of discussion going on about converting the existing solar into battery and freeing up the existing connectivity which is there at ISTs. So there are various solutions for, for reducing the peak supply of solar power. Because you know we have around 52 gigawatts of CTU connected renewable today. And this 52 gigawatt of solar and wind, out of which wind is only 10 gigawatts, it can be converted into peak power in the existing contract construct of the PPAs. So there are some low hanging fruits in terms of solving this problem which everybody is mindful of.
So there is, there is. And in terms of the bids, there is a large capacity coming up from credible developers in terms of the fdi in terms of the peak power. If you even adjust the state level bids which are there and that is mostly at stu. The, the state level bids where you are seeing excessive competition, they are mostly at STU and they are not at ctu. We are talking mostly about CTU here, right. Because our playing field is ctu. So there you have not seen those kind of bids and those kind of irrational competition because that has happened at the state level where there is a VGF and so, so there is.
You should separate the two other. The credibility of the developers doing the CTU projects, the power grid which is highly credible and, and the developers which are doing a. Not standalone batteries, but a battery comes solar which you require extensive connectivity, extensive land purchase. So the issues you are seeing is mostly on the STU level bits at the estate substations and plus government is mindful of the CTU level issue which they are trying to solve.
Mohit Kumar
Got it. Sure. Thank you. And just one quick question is on Slide 7, you mentioned, you mentioned about connectivity inventory for upcoming bids. So this is over and above the LOA bids you have, right? I mean for the future bids that you will be. Thank you so much. Then all the best. Thanks.
operator
Thank you. The next question comes from the line of Nikhil Abhyankar from UTI amc. Please go ahead.
Unidentified Participant
So a couple of questions. So first related to the best system. So what are we exactly targeting over here? Will we look to Cater to both the morning and the evening peaks. Will we be able to do any terms more than once through the system?
Nikhil Dhingra
Yeah, we can do that both. It depends on because what we are trying to get is we are trying to get arbitrage of the cheap power versus the peak power. So if the morning arbitrage, for example in the morning time, solar time, we charge the battery we will be able.
Rajat Singh
To do in the evening, even the. Nighttime especially between 12 o’ clock to 2 o’ clock if again the power cost goes down we can charge it and do it in the morning. So we are flexible our batteries actually they are designed to work for a two cycle. And this guidance of 170 odd cross was based on one turn of more than one.
Nikhil Dhingra
Yeah, it is based on one. If you do two it will be double sure. Just continuation to that. Will this early commission for best system impact or IRS for which the best is being procured? I mean, I mean the life of the system is considered to be around 1112 odd years. So early replacement will impact the project itself. The project. No, no, no, it is not in fact today’s modern, modern batteries they are actually designed for 18 to 20 years and in fact they are designed for 1.6 cycles a day. 1.6 cycle a day means someday two cycle, someday one cycle. In our business model normally we, we have kept it 12 to 13 years of replacement of the battery. So technically we are not affected for one year one and a half years of this operation.
Rajat Singh
And in terms of the battery replacement, when we talk it is a cell replacement only the associated infrastructure does not. Need to be replaced. And secondly when we are realizing revenue early we are making a good IRR on that particular capex. So that will also add up to the utilization because this is good for the capex done and just on the under construction portfolio. So can you just give us the time in terms of capacity which you expect to get commissioned? We will say in next two years 28, 27 and 28 and the related CapEx as well. So yeah, like we said 1.5 gigawatts is is likely to happen by FY27. Right. And in addition to that around 2 gigawatt hour of battery which is of course so these are the best is part of it.
So 1.5 gigawatt by FY27 and 1.1 gigawatt by FY28. So let’s say we have around 2.6 gigawatt of signed PPS. Right because let us track the signed PPAs because as and when PPA gets signed we can upgrade this thing. So let’s simplify things. So FY27 1.5 gigawatt FY28 1.1 gigawatt so capex. Capex is around 12,000 crores for this FY27 till capacity and you can say around around 10,000 crore for the 1.1 in FY28. This includes the best cost as well. This includes the best cost as well. Yes. And sir, on the unsigned PPA projects portfolio do you expect any movement or I mean not really.
No, no we do expect a movement. We have, we have tried our best to accommodate the status. Also in the presentation we have said that in the near term 770 megawatts of additional PPA signing in addition to what we have done of 450megawatt. So we expect those to move for reasons we mentioned earlier during the call in terms of the attractiveness of because of the ISDS waiver which is currently going on, the timeliness of land purchase and every availability which the supply side has. So we expect the movement and also because of the less bids which are coming of a similar sort of construct.
So we expect these PPAs to move and last it’s to buy. And just a final question of the current under construction portfolio can you give us how much BCR modules will you require in the next few years? We don’t need any dcr.
Unidentified Participant
Thank you.
operator
Thank you. The next question comes from the line of Yogesh Patil from Dalat Capital. Please go ahead.
Aniket Mittal
Thanks.
Unidentified Participant
Sir, I have a couple of questions.
Aniket Mittal
Questions related to again a connectivity till date we have a 2.1 gigawatt kind of capacity is under. If you could give us how much of this capacity is having a GNA approvals and a temporary GNA approvals at this stage and correct me if I’m wrong.
Rajat Singh
Correct.
Aniket Mittal
Understanding that all of our PPA sign capacity has a full GNA access.
Unidentified Participant
Yes.
Rajat Singh
Yes. So basically you get a in principal approval then you get a final approval that is at the, you can say pre build out stage. Right. So we have got the connectivity approval for the whole capacity where PPI signed and this GNA whether it is a short term or a long term is operationalized when the system is built. Right. So when, when, when your system is fully built you get a long term GNA and in terms of let’s say if there is any element which is not complete you can get a short term DNA and you can supply power.
So this, this connectivity agreement optionalization is Signed when the the it is built out. So right now we have connectivity, full connectivity allotted for the PPA signed and unsigned both like we said. And we have access inventory of around 7 gigawatts of additional connectivity this GNA. Of course we have dates for each and every substation within the, within the timelines we are targeting. And that is why we have given the current schedule of those transmission lines. We have scheduled the CODs and also in terms of a regulatory point that if there is a delay due to any element of the transmission line, there is an automatic extension given in the PPAs for that sort of delay which compensates.
And we also track, we also track on a monthly basis basis actual site visits to that CTU substation. Where are they in terms of the actual progress of that transmission link? And of course if there is a delay at their end, we adjust our CAPEX to save on the idc. So in our existing ongoing projects we are fully tracking that and we have synced up our transmission, our commissioning dates as per that.
Aniket Mittal
Yeah. So the second question need a small understanding on procurement of the equipment for the product at the time of entering into the contract with the equipment supplier from India or China. Do you sign this contract generally in case of Indian Indian rupee terms or a US dollar terms.
Rajat Singh
So with all the Indian suppliers and it includes the Chinese suppliers who are based in India like the turbine suppliers, the transformer supplier, the inverter supplier. There are actually quite a lot of Chinese suppliers who have manufacturing or or assembly in India. So they are all done in rupees. I can give you examples of lot of these suppliers who are Chinese but based in India. So they are all rupee. Most of that is rupee. The only bit which is done in dollars is, is the batteries. Batteries and sell by the module supplier, not by us.
So the only thing which is done is the batteries. And in some cases we have tried and what you can say gis which is again bought out from India, again from a Chinese supplier, but they have, they are billing it from India. So only batteries is in dollars, rest is all in rupee.
Aniket Mittal
Okay, and the last one do you sign, do you sign the fixed price contract with the equipment supplier or a flexible price contract? I mean the solar module raw material prices goes up, goes down. Who takes the losses or the profits of this contract?
Rajat Singh
So we have realized over a period of time that signing these flexible contracts has have not much value because the sometimes because of the regulatory changes or any change, these prices are difficult to hold. Even if you take a You can say a CPBG or any sort of regulatory mechanism it is difficult for anybody to service so we always sign a fixed price contract with no linkages and these are all short term contracts wherein the supply starts from let’s say maximum couple of months including the shipping time. So and we try and sign with the large suppliers who have such kind of monthly capacities such that they are able to service a large volume within a month of production.
So we don’t sign flexible contracts.
Aniket Mittal
Thanks. Thanks a lot. All the best.
operator
Thank you. The next question comes from the line of Sourabh Arya from Oakland Capital. Please go ahead.
Unidentified Participant
Yeah hi sir, Congrats on good set of numbers.
Rajat Singh
Couple of clarification.
Unidentified Participant
The first one is this green shoe which we have won with NHPC. So just want to understand this was not part of the last year presentation. I mean to say last quarter presentation is it like a news and one should consider.
Rajat Singh
Right? Right Saurabh. So you are right it was not part of our presentation because see green shoe is something which is. Which happens later than the original allotment. Our PPA as you know got signed for the original allotment quite a long while back so we had no clarity on the signing of this PPA till the time the regulator the NHPC told us that they are seeing the demand for this power considering the connectivities we have, considering the availability of supplying power we have and then very short term we were able to get this. So and this happened between the last quarter and this quarter so that is why we are updating because till the time we don’t take green shoe projects until they fructify because that is something which is tentative so that is the reason they were not part of our last presentation.
But then let’s say you were you.
Unidentified Participant
Are already building this project and it had scheduled timeline of June 21. So would this be accommodated at same place in terms of connectivity, land and everything. So how can the planning be so quick within a span of 12 months.
Rajat Singh
For something which is just one. So see as we have told you we have got connectivity for even 7 GW post. This post allotted this thing so you know we have. We are not treating the under construction projects and the PPA sign projects as far as the land and transmission line are concerned because they are long lead items and connectivity of course without connectivity you can’t hope to be in business even bidding is not advisable. So we have land transmission line right which is going on and also we have let’s say long lead items also Like a power transformer ordered.
Because we are very confident that these things will happen. If this PPA does not get signed, the other PPA can get signed. So when we plan a project, we plan a particular set of sites which we keep on developing. Of course we don’t order batteries, we don’t order modules and we don’t order, we don’t take any financing till then we push through our equity. So, and this is not, this is not certain, these are all sites which are developed when we are telling you that 770 megawatt of PPA will also get site. So for those sites also we have the land and transmission line.
Because we see, because of this transmission waiver thing, you need to do that. If you don’t do that, you will not get a customer for your PPA because the customer wants the power before the June 27th or before June 28th. Because these are the timelines post June 28th. Everybody is equal. Right. Because there is no differentiation in terms of the transmission waiver and it reduces the attractiveness of the CTU connected project projects. So. So it is important to do that. And, and we have been doing that. Sure. And if you could, you know, break.
Unidentified Participant
Up this 770megawatt which is further PPA signing you are expecting.
Nikhil Dhingra
Is it.
Unidentified Participant
Does it pertain to old projects or new projects?
Rajat Singh
So yeah, the 770 megawatt is a mix of old and new projects. And of course like I said just, just before this, it’s a, it’s a function of the preparedness when a state is looking at the. Of course he looks at his own requirement in terms of peak power. So all these have a peak power element and also they have a high peak power element. Basically they look at the mix of how much peak power are you able to supply, how much wind power. Also sometimes they, they have peculiar requirements depending on each state to state, depending on their power profile.
So it’s a mix of old and new projects and of course it’s based on their requirement and also the timelines in which we are able to supply in the readiness. Because see, a lot of states have procured power which are not coming on time because of the connectivity delays because of the land delays. So they are really trying to see whether you can deliver that power within the timeline. Because everybody is very conscious about the these timelines now. So this is a mix of old and new. We have not disclosed the exact thing because we will like to disclose once the PPA gets signed.
But of course they are in advanced stages of Regulatory approvals.
Unidentified Participant
Fair enough. Thank you very much.
Rajat Singh
Thank you.
operator
Thank you. The next question comes from the line of Pradyum Nichowdhury from JM Financial Group. Please go ahead.
Unidentified Participant
Yeah, hi. Thank you for the opportunity. Sir, just one question regarding the project cost, like in your PPT as well and in your opening remarks you spoke about the equipments currently being ordered within. Within the budgeted cost. So what really do we mean like by this budgeted cost? Like what sort of target IRRs or the budgeted project IRRs are we assuming that would help us get more sense of the kind of prices we are bidding for? Right?
Rajat Singh
Sure, sure, sure. So, so we take care of high teen returns. That is the threshold we have that we don’t bid for anything lower than 16% return. I think we mentioned that in the past also. So it returns is our threshold and when we look at at for us, let’s say a one and a half percent movement is a very significant movement in irr. So when we say there is no impact, it is less than that usually. And in terms of the, in terms of the capex. So like we said, we have changed our strategy basis, let’s say preponding the batteries to utilize that CapEx.
We are not, we are able to order batteries at a short time because we have connectivities which are operational and which can take batteries. See, nobody will be able to keep batteries for more than six months because they degrade. Right. And because there is a CAPEX involved, there is interest during construction. So only a developer who has, who can make them operational will be able to get those batteries. So, so that is why these returns are not impacted because we are able to get those batteries. Because you know there is, there is so much capacity established in the world, primarily China, which so, so there are very few guys who are able to take deliveries, let’s say in March, April, May.
Right. That is how world works. Right. In terms of what actually can you take? There may be somebody who is willing to give them an order for next year, but they will not quote a price for that guy.
Unidentified Participant
All right. But like my concern relates more to the fact that the tariffs have already been decided and I’m assuming the batteries or the solo modules are ordered towards the end of the project capex.
Rajat Singh
Right.
Unidentified Participant
So there. How are we really protecting ourselves even there we are within the budgets and especially for the ones where 50% of the remaining, like you said that 50 for 50% we’ve already ordered and for the remaining 50% it’s still yet to be Ordered. So for what, what are plans for the remaining 50%?
Rajat Singh
Right, right. Right. So, so, so why do we say that we are within budget is because see the policy change. There is an, there is a policy change in China, right. So post that policy change in April we have April delivery which is happening at a price which is you can say much less than the budgeted cost, which is a heightened returns. So that is why we are saying that we are within budgeted cost because the marginal delivery delivery we are taking in April, basically April price post the regulations is also well within the range and 50% of course we have procured where we are installing them that is well within the range also.
So that is on that basis we are saying that we are well within the budgeted cost.
Unidentified Participant
Understood. And on the PPAs I believe now around 800 megawatts, 2000 megawatts is what we don’t have near term visibility. Right. Like where we are yet to sign the PPAs and there’s no near term visibility. So what sort of timelines are we looking there like? Especially when you say that we have a near term visibility for say around 750megawatts. So by near term you’re meaning the next three, six months. Is that what, what is reasonable to assume? And what about the remaining ones? Again, the reason, if you can just repeat the reason you gave for us expecting acceleration in TK signings.
I didn’t, I know you answered to one of the previous participants but I didn’t really understand understand it. So if you can just repeat the reason as well.
Rajat Singh
No problem, no problem. Completely understand your query. So in terms of the beyond 770megawatts. Right. There is a very. When we say near term we basically say that when there is a buyer approval. Basically the first thing you need in a PPA discussion is the buyer approval whether they are okay to take that offering or not. So we have buyer approval for this much capacity. We don’t have written buyer approval for the rest of it. That is why we did not say near term number. But there is a very good chance of those PPA’s also getting signed in the next quarter only.
Right. Which is around 700 megawatt more other than 770 megawatts. And why did we not put it. Because there is no written buyer approval.
Unidentified Participant
We have.
Rajat Singh
Right. And, and, and there are differences in how each state procure power. Somebody takes a prior regulator approval, somebody takes a post signing approval. So there are various stages in a PPA implementation. The PPA gets signed, somebody takes a Prior approval, which is good for us because it includes definitiveness. Somebody takes a post factor approval, that is also fine. We have to go along with it so that 750 megawatts more of FDRE hybrid PPA that is again at a very advanced stage. And, and there, and also there is a timeline difference between each state. So we have not put it because we only want to put it where we have a buyer consent, but There is a 700 megawatt more of PPA which is under advanced discussion.
But I don’t have a written thing to write. So that is why we did not write it.
Unidentified Participant
Understood. And the reason you were saying that overall in the industry we are expecting the PPA signings to accelerate. Could you just repeat that again?
Rajat Singh
Yes, yes.
Nikhil Dhingra
So.
Rajat Singh
So the reason primarily is that these set of players who have won these bids, right, of course they are serious players and they have made because see they have made significant investments on getting connectivities on offering earnest money, deposit performance bank guarantees and they have got huge fixed cost in terms of teams. So most of the players who have won these bids, 42 gigawatt of bids, are quite serious about building those projects in 20, 26, 27 and 28. And this is the period which gets you ISTS waiver. As a buyer, basically you are aware that ISTS waiver is expiring on the Central grid in 2016 in phase.
So the states find it. And states which don’t have a good renewable at their own state, they don’t have flexibility to build state connected projects because they are expensive, because the sunlight is not there. So those states particularly will be very keen to buy these CTU connected projects which have a transmission waiver element built in. And who can supply to them? No, nobody where the bid happens today will be able to supply with the ISTS waiver in hand, right? Because the bid cycle itself is very long. They take 90 days to do an auction and then there is a loa.
There is so. And there is of course the element of buying the Chinese cells or Indian cells also which make the price slightly costlier and of course it will take time. So because of the preparedness of the supply side and also on the demand side, this ISTS waiver expiring, these two are making a attractive win win proposition. The only hitch which was coming was there are concurrent offerings of similar kind outstanding from various bidding agencies which is making the choice difficult for these buyers. So that is the reason the PPAs were taking time, because it was actually done, let’s say on A standalone basis by all four agencies which created a sort of glut of supply of these PP which leads to delay.
So as people choose what they want to buy and the suppliers also customize their offerings and choose what they want to sell how it will be attractive to the buyer I think it will clear. And of course the power demand in last year also plays on people mind that how do I see the power demand coming up. So some of these and of course there are elections every state every year we have some elections which also delay these things. So and. And there is a cycle itself which takes time. So we are expecting these things to happen because of the preparedness and also because of the regulatory ISTS waiver thing.
Unidentified Participant
And usually this is we will how much on a per like in terms of the tariff can it cost additional months for the projects commissioning post 28.
Rajat Singh
So see there is. There is. Each state has a different sort of charges depending on how much their transmission infrastructure is utilized currently. So for on our. Let’s say there is no rebate the power it could go to up to one rupee more than one rupee for solar.
Nikhil Dhingra
Actually this is. This will be at a different this recess here. So for example if it is only solar it may go up to 1 rupees 31 rupees 40 paisa. If it is solar plus battery it can come down to 80 paisa. If it is FDRE it can further come down to 3040 paisa. That’s why you will see more and more power is round the clock power or FDRE to reduce the impact of the FDRE to reduce the impact of ISTS waiver in future.
Rajat Singh
It’s very substantial for each state we have seen it is very substantial. Substantial because NHPC and SEKI and all these agencies are very mindful that can you give it before 2728 and it is very important. We have not seen a state who does not care about it.
Unidentified Participant
All right. And my last question is regarding the under construction projects. So are we like. Of course our execution has been brilliant. But on the grid construction are the grids also corresponding grids? Are they coming up on time or are. Are we expecting certain delays over the next couple of years? The projects that we plan to launch.
Rajat Singh
Commission see there was a. It’s. It’s a very very hotly reviewed project thing at. At all levels. So in terms of the planning of these transmission projects there are a lot of changes which have happened over the last few years. They have given a. Let’s say earlier they used to plan it in 80 months. Now they are giving a 24 to 30 month period to these transmission period. They are planning it early, they are coming up. So. So this gives a lot of time for these guys to come up on the committed time and not getting extended.
So of course there what we are seeing is we have kept a buffer of a quarter delay in all our planning. So. And of course this can happen because depending on what are the upgrades, right? In some cases they are building a transmission line, in some cases there is no transmission line. So if there is a transmission line, there could be a, let’s say a 1/4 delay because of RW issues and other things. But if there is a local installation offer, you can say infrastructure, electrical infrastructure only, then the delay is very much unlikely because these are a local execution.
But by and large we track the various cycles of these transmission infrastructure and we don’t see a delay in where there is no transmission line, but where a transmission line a three month delay can be there. And we keep on monitoring our capex as per that if we foresee that it could extend, we therefore that capex and also we can take the strategy of. We have already done that, right? To hedge that risk, we had called batteries at the operational substations. We have broken the plant into two, right? The batteries at the operational substations where there is no risk at all, all and.
And then the modules at those plants where the new infrastructure is coming up. So you can take multiple ways to solve this problem because this is beyond our hands.
Unidentified Participant
All right, thank you and all the best.
Rajat Singh
Thank you. Thank you.
operator
Thank you. Ladies and gentlemen. Due to time constraint, that was the last question for the day. And now hand the conference over to the management for closing comments. Thank you. And over to you sir.
Nikhil Dhingra
I would like to thank you. Thanks to all of you that you had a very, very important question you asked us and I hope my team must have given you the inputs. If there is any further input, we will be very happy to provide. We can assure you that we are working on the technology, we are working on the execution, we are working with the government on policy advocacy and we are also working on the regulatory forum. So as a company, we believe we are not only just doing execution, we are also creating a policy framework for entire industry and we are also doing something on the technology side.
I think I must have shared with you in my last presentation that we are already testing perovskite technology and we believe that that will be very useful in the coming years. So we have already started that will Give the industry as well as Jectney as input to see that the whether the technology moves from the current silicon based to perovskite based. We are also doing robotic installation. That is one of the challenge in this industry. If you want to increase from 1 gigawatt or 2 gigawatt per year to 5 gigawatt per year. One of the biggest challenge in the industry was how to install 5 GW 6 GW watt of modules manually.
So this year we are doing automation of that. We have created a very special, innovative, very special team only focusing on the future technology which can help us to install without the manpower. So that’s the robot. We are doing that automation and implementing robotic. That’s the second thing we will be doing. Third thing we have applied for the patent on the 23 areas. That is also one of the significant improvement by our R and D team where we will be working on the optimization of the battery renewable wind. So the we can provide almost like a baseload power to the base load power similar like nuclear or similar like this one and much cheaper than thermal or nuclear.
So those are the areas ACME always known to work on and I can assure you we’ll be continuously working and taking it forward. Thank you.
operator
Thank you. Thank you on behalf of Acme Solar holdings and Motilal OSWAL Financial Services Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect the line.