REC to fund Rs 7,500 crore to power 1.04GW Andhra hybrid energy project

Hyderabad: REC Ltd, a state-owned Maharatna Non-Banking Financial Company (NBFC), on Monday announced a historic sanction of Rs 7,500 crore to finance a 1.04 Gigawatt (GW) hybrid energy project in Kurnool, Andhra Pradesh. The total investment for the project is estimated at Rs 9,910 crore.

The project is being developed by Evren, a clean energy platform in India launched by global infrastructure investor Brookfield as a joint venture with Axis Energy. Brookfield holds a 51.49 per cent stake in Evren.

This landmark deal represents the single-largest sanction by REC for any private sector project in its history, signaling a major boost for India's renewable energy sector.

The 1,040 MW (1.04 GW) project is the first of its kind to be classified as a Firm Dispatchable Renewable Energy (FDRE) project with state connectivity and a state Power Purchase Agreement (PPA). It will be a hybrid combination of 640 MW of wind and 400 MW of solar.

Originally conceived as a "bundling, balancing, and banking (BBB)" project that would use gas for balancing, the project has now been shifted to utilise battery storage to meet peak requirements.

"This record sanction of Rs 7,500 crore is a testament to REC's commitment to financing India's clean energy transition and our confidence in strong private sector partners like Brookfield," said a representative from REC Ltd.

"This 1.04 GW hybrid project is not just significant in scale, but also in its innovative FDRE structure, which balances wind, solar, and battery storage. It sets a new benchmark for how large-scale renewable projects can be financed and developed to provide reliable power," the REC representative added.

The investment is a significant validation of the new 'Integrated Clean Energy Policy' launched by the Chandrababu Naidu government in October 2024, which has fast-tracked clearances and provided fresh sops to attract green investments.

"We are thrilled to partner with REC on this groundbreaking project. This financing is a milestone for our Evren platform and a major step forward for renewable energy in India. We are deeply grateful for the proactive support of the Government of Andhra Pradesh; their new Integrated Clean Energy Policy is creating a stable and attractive environment for large-scale investments. This project is the first phase of our 3 GW pipeline in the state and a key part of our 11 GW national plan," said Brookfield Asset Management, pesident Connor Teskey.

The investment follows a productive meeting in September between Andhra Pradesh Minister for IT and Electronics, Nara Lokesh, and Brookfield Asset Management President, Connor Teskey, at its London office to discuss further investments in the state.

Welcoming the announcement, Nara Lokesh said, "This is a historic investment for Andhra Pradesh. Brookfield's decision, backed by REC's massive financial sanction, is a direct result of our new Integrated Clean Energy Policy. We are creating a best-in-class ecosystem for green energy, and this 1.04 GW project in Kurnool is just the beginning. We are also actively pitching for investments in AI-ready data centers and real estate, and this partnership proves Andhra Pradesh is open for business."

Evren has a project pipeline of over 3 GW in Andhra Pradesh, spread across Kurnool and Anantapur, as part of a larger 11 GW national plan. The company is also exploring opportunities across integrated solar module manufacturing, pumped storage, battery storage, e-mobility, and green ammonia in the state.

Brookfield is a leading global alternative asset manager with over $1 trillion in assets under management. It is one of the world's largest investors in renewable power, with approximately 46 GW of installed capacity and a development pipeline of around 200 GW.

Evren is a clean energy platform in India launched by Brookfield as a joint venture with Axis Energy. It is developing a portfolio of over 11 GW of renewable energy projects across the country.