REC Ltd‘s subsidiary, REC Power Development and Consultancy Ltd, has teamed up with Bharat Heavy Electricals Ltd (BHEL) to collaborate on renewable energy projects nationwide. Together, they plan to establish a SPV dedicated to developing renewable energy projects for distribution to discoms.
REC Power Development and Consultancy Ltd is a subsidiary of Rural Electrification Corporation Limited, established to provide consultancy services in the power sector. RECPDCL offers services such as project management, construction supervision, and quality assurance for power projects, including thermal, hydro, and renewable energy.
Bharat Heavy Electricals Ltd (BHEL) is a leading engineering and manufacturing company in India, specializing in power plant equipment. Established in 1964, BHEL has been instrumental in providing reliable and cost-effective solutions for the power sector. The company manufactures a wide range of products, including boilers, turbines, generators, and solar photovoltaic modules.
According to REC, “The SPV will benefit from Bhel’s core engineering expertise and the company’s infrastructure investment expertise. It will primarily focus on meeting the energy needs of the commercial and industrial (C&I) sector, starting with an initial capacity of 1 GW, which will then be expanded.”
“The establishment of this Special Purpose Vehicle (SPV) is deemed critical in realizing India’s ambitious renewable energy goals, paving the way for a more sustainable future,” remarked Vivek Kumar Dewangan, CMD of REC. Koppu Sadashiv Murthy, CMD of Bhel, also expressed optimism, highlighting the abundant opportunities in the renewable energy sector.
He emphasized the importance of synergizing the strengths of both organizations to meet the government’s ambitious targets. REC Power, a wholly owned subsidiary of REC Ltd, specializes in providing consultancy and project implementation services for distribution reform projects worth over ₹1 trillion to state power distribution companies and power departments.
This collaboration is timely as India aims to achieve 500 GW of installed renewable energy capacity by 2030, with the current capacity standing at over 170 GW. The government targets an annual addition of 50 GW until FY28, although questions have been raised about the feasibility of this goal.
In the year 2023, the total installed renewable capacity amounted to 13 gigawatts (GW). Looking ahead, ICRA forecasts a substantial increase, with anticipated installations of 20 GW in the financial year 2024 and a further growth to 25 GW in the financial year 2025.
