REC shares gain 3% after signing MoUs worth ₹1.12 lakh crore with renewable energy developers

In a filing on September 17, REC informed the exchanges that it has signed non-binding Memorandums of Understanding (MoUs) with renewable energy developers aggregating nearly ₹1.12 lakh crore, which will be implemented over five years.

The state-owned power financing company signed a ‘Shapath Patra’ to increase its renewables loan book to over ₹3 lakh crore by 2030. The signing of the MoUs will increase the share of renewables in REC’s loan book from 8% to 30% by 2030.

REC projects a loan book of ₹10 lakh crore by 2030 with a strategic plan, which includes increasing the fund allocations for the renewable energy segment.

The MoUs were signed at the 4th Global Renewable Energy Investors Meet and Expo (RE-INVEST 2024), which will be held from September 16 to September 18 in Gandhinagar, Gujarat. The company said in the release that it plans to be a key player in achieving India’s aim of increasing its installed non-fossil-based power generation capacity to 500 GW from 200 GW by 2030.

The MoUs signed by the state-owned Non-Banking Financial Company (NBFC) include the development of solar and wind hybrid projects, solar and wind round the clock (RTC) projects, firm and dispatchable renewable energy (FDRE) projects, floating solar plants, ultra mega renewable energy park, hydroelectric power projects, Battery Energy Storage Systems (BESS), Pumped Storage, Hydropower, Green Ammonia/Hydrogen, Solar Cell/Module Manufacturing and other such technologies.

The state-owned power sector company said that discussions are underway to finance green energy corridors, wind turbine manufacturing, and the electric vehicle ecosystem. The company said that it is open to considering renewable projects by developers for the consumer and industrial segments having top-rated offtakers.

REC shares were trading at ₹553.5 apiece on the NSE at 11:12 am, up 1.59%.