REC Ltd Shares Soar Over 3% After Signing MoUs Worth ₹1.12 Lakh Crore
REC Ltd shares surged over 3% on the NSE after the company signed non-binding MoUs worth ₹1.12 lakh crore with renewable energy developers.
Rec LtdRenewable EnergyPower FinancingIndiaEnergy SectorReal Estate MumbaiSep 18, 2024
The shares of REC Ltd opened at ₹555.00 per share on the Indian bourses. The stock touched a day high level of ₹563.25 per share on the national stock exchange in the opening hour of the trading session today. The move to day-high level amounted to 3.37 per cent.
REC Ltd has signed Memorandums of Understanding (MoUs) totalling nearly ₹1.12 lakh crore with renewable energy developers, according to the exchange filing received on September 17. The agreements will be implemented over a period of five years and are non-binding.
The state-owned power financing company has committed to growing its renewable loan book to over ₹3 lakh crore by 2030 by signing a 'Shapath Patra.' By 2030, the percentage of renewable energy in REC's loan book will rise from 8 per cent to 30 per cent as a result of the signing of the MoUs.
With a strategic plan that includes increasing fund allocations for the renewable energy segment, REC projects a loan book of ₹10 lakh crore by 2030. The Memorandums of Understanding were inked during the 4th Global Renewable Energy Investors Meet and Expo (RE-INVEST 2024), which is scheduled to take place in Gandhinagar, Gujarat, from September 16–18.
The company intends to play a significant role in helping India meet its 2030 target of increasing installed non-fossil power generation capacity from 200 GW to 500 GW. The MoUs signed by REC include establishing 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 also announced that talks about financing wind turbine manufacturing, the ecosystem for electric vehicles, and green energy corridors are currently underway. According to the company, it is willing to consider renewable project proposals from developers with top-tier offtakers for the consumer and industrial segments.
About REC Ltd
REC Ltd is a state-owned power financing company that provides financial assistance to the power sector in India. The company was established in 1969 and is headquartered in New Delhi.
India has set a target of increasing its installed non-fossil power generation capacity to 500 GW by 2030. The country aims to reduce its dependence on fossil fuels and promote the use of renewable energy sources to meet its energy needs
REC Ltd is a leading power financing company in India that provides financial assistance to the power sector. The company has a strong track record of supporting the growth of the power sector in India and is committed to promoting the use of renewable energy sources.
Frequently Asked Questions
What is REC Ltd's target for its renewable loan book by 2030?
REC Ltd aims to increase its renewable loan book to over ₹3 lakh crore by 2030.
What is the percentage of renewable energy in REC's loan book currently?
The percentage of renewable energy in REC's loan book is currently 8 per cent.
What is the target for India's installed non-fossil power generation capacity by 2030?
India aims to increase its installed non-fossil power generation capacity to 500 GW by 2030.
What types of projects are included in the MoUs signed by REC Ltd?
The MoUs signed by REC Ltd include solar and wind hybrid projects, solar and wind round-the-clock (RTC) projects, firm and dispatchable renewable energy (FDRE) projects, and other such technologies.
Is REC Ltd willing to consider renewable project proposals from developers?
Yes, REC Ltd is willing to consider renewable project proposals from developers with top-tier offtakers for the consumer and industrial segments.
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