New Delhi: ACME Solar Holdings Limited said on Friday its wholly-owned subsidiary, ACME Greentech Eighth Private Limited, has been granted a Category IV inter-state electricity trading licence by the Central Electricity Regulatory Commission (CERC).
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The licence, issued on October 30, authorises the company to trade electricity across India under Sections 14 and 15(1) of the Electricity Act, 2003, and the CERC (Procedure, Terms and Conditions for Grant of Trading Licence and Other Related Matters) Regulations, 2020.
According to ACME Solar’s regulatory filing, the approval allows its subsidiary to undertake trading operations and generate revenue through trading margins — the difference between the buying and selling prices of electricity. The licence will remain valid for 25 years unless revoked earlier.
An inter-state electricity trading licence issued by the CERC allows an entity to engage in the commercial transfer of electricity between states. Inter-state trading is defined as the sale and purchase of electricity across state boundaries by a licensed trader acting as an intermediary between generators, utilities, and consumers.
This trading activity is distinct from generation, transmission, and distribution, and serves to facilitate market-based electricity transactions and improve grid efficiency.
CERC’s licensing framework, established under Section 14 of the Electricity Act, 2003, and governed by its 2020 regulations, classifies traders into five categories based on trading volume and financial capacity.
A Category IV licence, such as the one granted to ACME Greentech Eighth, applies to entities proposing to trade up to 1,500 million units (MUs) of electricity per financial year. Licensees in this category must maintain a minimum net worth of Rs 10 crore and meet financial ratios such as a current ratio and liquidity ratio of at least 1:1.
They must also employ qualified professionals in power system operations, finance, and accounts before commencing trading activities.
CERC mandates that licensed traders maintain separate accounts for their trading business, submit periodic reports, and comply with prescribed trading margins. Currently, the commission caps trading margins at Rs 0.04 per unit for transactions priced up to Rs 3 per kWh, and Rs 0.07 per unit for sales above Rs 3 per kWh.
Traders are required to commence operations within one year of receiving their licence and are prohibited from engaging in transmission or merging with other utilities without CERC’s prior approval.
ACME Solar said the licence strengthens its ability to participate in India’s evolving electricity market through structured trading operations. “The Category IV licence enables the company to undertake trading of electricity and generate revenue through trading margin,” the company said in its exchange filing.
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The licence marks another step in ACME’s strategy to diversify its clean energy portfolio and monetise power market opportunities across India.
