REC chairman and managing director (CMD) Vivek Kumar Dewangan said on Thursday, “India’s energy transition with regard to the installation of renewable energy capacity will itself require an investment of more than INR 15 lakh crore ($181 billion). We target at least 20% of this financing to be carried out by REC.”
REC’s focus areas for renewables financing include solar, wind, hybrid solar-wind, storage solution, green hydrogen, and green ammonia.
India has set an ambitious target to become net-zero by the year 2070. It targets 500 GW of the installed electricity capacity from non-fossil fuel sources. As of now, the nation has installed a renewable energy generation capacity of about 175 GW. Another 325 GW capacity will come in the next seven years.
“Against this backdrop, REC has a very significant role to play in the energy transition,” said Dewangan.
REC’s sanction in the renewable energy space grew from INR 7,034 crore in FY 2017-18 to INR 21,317 crore in FY 2022-23. The company’s loan book in the RE space increased from INR 7,506 crore in FY 2017-18 to INR 29,073 crore in 2022-23, accounting for 6.7% of its overall loan book of INR 4.35 lakh crore as on March 31, 2023. Continuing with this trend, REC aims to expand its loan book under the renewable energy portfolio to INR 2.4 lakh crore by the fiscal year 2030, forming about 30% of its overall loan book of INR 10 lakh crore on March 31, 2030.
REC closed FY 2022-23 on a high note. It recorded a net profit of INR 11,055 crore, its highest-ever yearly profit and an increase of 10% year-on-year. Aided by growth in profits, its net worth grew to INR 57,680 crore as on March 31, 2023, an increase of 13% YoY.
REC is a non-banking finance company under the power ministry, focusing on the power sector. It has also forayed into the non-power infrastructure growth. In line with the government of India’s focus, REC continues to grow its renewables business.
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