New Delhi [India], September 17 (ANI): REC Limited has sanctioned a Rs 6,075 crore loan to renewable energy company Greenko for setting up a 1,440-megawatt Standalone Pumped Storage Project.

REC Ltd is a Maharatna Central Public Sector Enterprise under the Union Ministry of Power. Established in 1969, REC Limited is an NBFC focusing on power sector financing and development across India.

REC is also in advanced discussions with Greenko and is poised to extend financial support for multiple clean energy projects, the Ministry of Power said in a release.

The National Electricity Plan of the Central Electricity Authority estimates an overall renewable installed capacity growth of around four times between financial year 2022-32 (7 times under solar, 5.5 times under pumped storage project, 3 times under wind).

"These projections, coupled with global thrust and national commitments under Renewables, will not just present a business opportunity for REC but will also allow the company to contribute to nation-building by leading the green financing vertical," the power ministry release said.

Previously, REC hosted the Green Finance Summit in July 2023 on the sidelines of India's G20 Presidency, where one-on-one discussions with renewable energy developers were conducted, leading to the successful signing of Memoranda of Understandings (MoUs) amounting to a total of around Rs 2.86 lakh crore.

"These milestone agreements reflect REC's pivotal role in facilitating green financing solutions and strengthen its position as a key financing partner for India's transition to sustainable and clean energy," the release added.

REC said it is firmly set on a path to attain a green finance loan portfolio totalling Rs 3 lakh crore by the financial year 2030.

India aims to meet its 50 per cent energy needs through renewable sources by 2030.

At the COP26 summit in Glasgow in 2021, Prime Minister Narendra Modi committed to an ambitious five-part "Panchamrit" pledge, including reaching 500 GW of non-fossil electricity capacity, to generate half of all energy requirements from renewables, to reduce emissions by 1 billion tons by 2030.

India also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.

India meets a sizable portion of its energy needs through imports, and new energy sources are seen as an avenue to reduce the dependence on imported fuel. (ANI)