REC Ltd to invest in a big way in renewables

REC, a subsidiary of Power Finance Corp., plans to expand its lending in the renewable energy space to Rs 2.4 lakh crore by 2030, says its director-technical, VK Singh. While land and grid availability can be challenging for developing new green energy projects, policies of the government and support from states have been encouraging.

India is at 175 GW and needs to add 325 GW by 2030. REC aims to build a renewable portfolio and explore opportunities in solar, wind, hydro, storage, hydrogen and methanol initiatives. REC is financing pumped storage projects & hydrogen / ammonia projects and supporting e-mobility efforts. Recently, it raised $750 million through green bonds to finance green energy and clean transportation projects. REC plans to expand loan book in the renewable energy space and increase it to ₹2.4 lakh crore by 2030. This year alone the organisation aims to sanction ₹75,000 crore to renewable energy and disburse ₹ 30,000 crore, which will be 25% of our total disbursements.

The declining cost of electrolysers and renewables makes it more beneficial to expand green hydrogen production in India rather than grey or blue hydrogen. Analysis indicates that the cost of green hydrogen could decrease from $5.5/kg to approximately $1.60/kg by 2030 and $0.70/kg by 2050.