REC arm, BHEL tie up for renewable energy projects
New Delhi: State-owned REC Ltd’s arm REC Power Development and Consultancy Ltd and Bharat Heavy Electricals Ltd (Bhel) have entered into a partnership to develop renewable energy projects across the country.
The companies would set up a special purpose vehicle (SPV) to develop renewable energy projects for supply to discoms.
“The SPV will be benefitted by the core engineering expertise of Bhel and infrastructure investment expertise of REC Limited. The SPV will focus to cater energy requirement of preferably the commercial and industrial (C&I) segment with initial capacity of 1 GW which would further be scaled up,” REC said in a statement.
“This SPV will play a crucial role in achieving India’s ambitious renewable energy targets and contribute to a cleaner and greener future,” said REC CMD Vivek Kumar Dewangan said.
Bhel CMD Koppu Sadashiv Murthy said there are ample opportunities in the renewable energy segment for leveraging the joint strengths of both organizations to achieve the ambitious targets set by the government.
REC Power, a wholly owned subsidiary of state-run REC Ltd, provides knowledge-based consultancy and expert project implementation services to state power distribution companies and power departments of states for various distribution reform projects of over ₹1 trillion.
Shares of BHEL on the BSE closed at ₹216.70 on Friday, lower ₹9.70, lower by 4.28% from its previous close.
REC shares on the BSE closed at ₹590.50, lower by 3.38% from its previous.
The tie-up comes at a time when the Centre has set an ambitious target of achieving 500 GW installed renewable energy capacity by 2030.
India currently has an installed renewable capacity of over 170 GW. The government aims to add 50 GW annually till FY28. However, concerns have been raised over the feasibility of the annual target.
In the calendar year 2023, a total of 13 GW renewable capacity was installed. According to rating agency Icra, a total of 20 GW is likely to be installed in FY24, followed by 25 GW in FY25.
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Published: 15 Mar 2024, 07:39 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.