REC plans Rs 2,800 cr investment in renewable energy

REC plans Rs 2,800 cr investment in renewable energy
State-run Rural Electrification Corporation, is likely to invest about Rs 2,800 crore to set up renewable energy projects, through its subsidiary REC Power Distribution Company, within next five years.

The investment, estimated to be around Rs 6-7 crore per MW, would be done in order to diversify into power generation. Commenting up on the development, REC Chairman and Managing Director H D Khunteta said, “Within four to five years, we should have around 300 to 400 MW capacity in renewable energy. That's our vision, so that they can contribute significantly to our balance sheet."

Informing about the plans further, Khunteta said that REC intends to have projects with a Plant Load Factor (PLF) of 50% or more. PLF indicates the average capacity utilisation of a particular plant. Further, he also mentioned about the approach to Himachal Pradesh government for setting up about five to seven hydro electric projects.

Elaborating the proposal, he stated, "We will take hydro projects or biomass, which can be completed within a year. We have already approached the Himachal Pradesh government for around 5 -7 projects, mini or small hydro electric projects, which can be completed within an year or year-and-a-half."

View: This is a good step transitionary step. Natural resources like oil, gas and coal are already under stress. There is more demand for electricity generation where as the resources are limited. This difference has alsready sent the prices up. As progress speeds up in Africa these resources will face more pressure. Since, electricity has become the imperative part of the growth. Therefore, it is important that REC should also diversify in renewable souce of energy as it will be important part of the portfolio in future.    

Read more about: power, rec, nse, bse
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