ReNew Energy seals $7.8bn deal with PFC and REC for green energy projects

ReNew Energy Global Plc, a leading decarbonisation solutions provider in India, has signed Memorandums of Understanding (MoUs) with Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) that are collectively worth INR 640 billion (approximately $7.8 billion).

These funds will be allocated to ReNew Energy Global’s green energy initiatives, as detailed during the Clean Energy Ministerial meeting in Goa.

According to the MoUs, ReNew Energy Global will receive INR 320 billion (around $3.9 billion) from each of the lenders, Power Finance Corporation and Rural Electrification Corporation, to finance both current and future projects aimed at advancing energy transition. The collaboration supports the ongoing clean energy transition efforts under India’s G20 presidency.

ReNew Energy Global is among the top companies that have secured such agreements with these two significant financial institutions in India. The funds obtained will be used for new developments, including those in solar, wind, hybrid, energy storage, solar modules and cells manufacturing, and green hydrogen.

Kailash Vaswani, President, Corporate Finance at ReNew Energy Global, said: “We have a long-standing relationship with PFC and REC, who are among the biggest lenders to the energy sector. These MoUs will help us meet our current and future financing needs and demonstrate ReNew’s ability to raise long-term financing for large-scale green energy projects. We will leverage this relationship for our energy transition goals.”

The news aligns with India’s ongoing mission to amplify its renewable energy capacity and reduce its carbon footprint in the face of climate change.