Public infrastructure finance company REC Limited has approved a funding of ₹60.75 billion (~$730.8 million) to Greenko to develop a 1,440 MW standalone pumped storage project.

REC is also in advanced discussions with Greenko and is poised to extend financial support for multiple clean energy projects.

It has also approved debt funding of over ₹30.81 billion (~$370.6 million) to Serentica Renewables‘ 560 MW peak greenfield solar-wind hybrid project at Gadag, Karnataka. The documentation has already been finalized, and the disbursement of funds is also in the advanced stages.

REC said the National Electricity Plan by the Central Electricity Authority envisions growth in renewable energy installations by approximately four times by fiscal year (FY) 2032, showing a significant increase in solar (~7 times), pumped storage projects (~5.5 times), and wind energy (~3 times) from the levels observed in FY 2022. These projections present substantial business prospects.

Vivek Kumar Dewangan, CMD at REC Limited, stated, “We are proud to be at the forefront of India’s journey towards a sustainable energy future. Our partnerships and collaborations are a testament to our commitment to align with global visions for a cleaner and greener planet. REC envisions itself as the leading financing partner for India’s energy transition, contributing significantly to the global mission of ‘one world, one family, one future’ as outlined by the G20.”

REC recently organized the Green Finance Summit, which facilitated in-depth discussions with renewable energy developers, signing memorandums of understanding amounting to around ₹2.86 trillion (~$34.4 billion).

REC stated it is steadfastly pursuing its goal to achieve a green finance loan portfolio totaling ₹3 trillion (~$36 billion) by FY 2030.

Recently, REC raised $1.25 billion in August and September 2023 from a consortium of six banks through a Foreign Currency Term Loan Agreement. The company raised $1.15 billion in two tranches from a consortium of six banks.

The government-owned power sector lender posted its highest-ever profit in the first quarter of any financial year. The company’s net profit during the first quarter of the financial year 2024 was ₹29.61 billion (~$356.16 million), a 21% year-over-year jump from ₹24.47 billion (~$294.34 million).

In May this year, REC listed its recently issued green bonds, which raised $750 million under its global medium-term $7 billion program at the GIFT IFSC Stock Exchanges in Gandhinagar.