REC shares surge over 3% on NSE after signing MoU worth over ₹1.12 Lakh Crore

After the company announced that it has made a non-binding financial commitment to increase its renewable energy loan portfolio to over Rs 3 lakh crore by 2030, shares of REC Ltd. surged over 3 per cent to touch an intraday high of Rs 563.25 apiece on the NSE on Wednesday, September 18.

Shares of REC Ltd. opened at Rs 555.00 per share on Indian stock exchanges. The stock touched an intraday high of Rs 563.25 per share on the National Stock Exchange in the opening hour of today’s trading session. The move to the intraday high was 3.37 per cent.

Memorandums of Understanding (MoUs) worth nearly Rs 1.12 lakh crore have been signed by REC with renewable energy developers, according to a stock exchange filing received on September 17. The agreements will be implemented over a period of five years and are non-binding.

The value of revolving loans is Rs 3 lakh crore

State-owned energy finance company has pledged to increase its renewable energy loan portfolio to over Rs 3 trillion by 2030 by signing the ‘Shapath Patra’ agreement.

By 2030, the percentage of renewable energy in REC’s loan portfolio will increase from 8 per cent to 30 per cent following the signing of the MoU. With the strategic plan, which includes increasing fund allocation to the renewable energy segment, REC is projecting a loan portfolio of Rs 10 lakh crore by 2030.

The cooperation agreements were signed during the fourth Global Renewable Energy Investors and Exhibition Meeting (RE-INVEST 2024), to be held in Gandhinagar, Gujarat, from September 16-18.

500 GW of fossil-free energy generation

According to a press release, the company aims to play a significant role in helping India achieve its 2030 target of increasing its installed non-fossil energy capacity from 200 GW to 500 GW.

Hybrid projects using solar and wind energy

The memorandums of understanding (MoUs) signed by the state-owned non-banking financial company (NBFC) include setting up of hybrid solar and wind projects, round-the-clock solar and wind projects (RTC), dispatchable and continuous renewable energy (FDRE) projects, floating solar plants, mega renewable energy parks, hydropower projects, battery energy storage systems (BESS), pumped storage, hydropower, green ammonia/hydrogen, solar cell/module manufacturing and other such technologies.

Financing wind turbine production

The state-owned energy company said it is currently in talks to finance wind turbine production, an electric vehicle ecosystem and green energy corridors. It said it is ready to consider renewable project proposals from developers with prime buyers for the consumer and industrial segments.