REC sets ₹3 lakh crore renewables loan goal by 2030

REC’s role in India’s power financing

REC Limited, established in 1969 to support rural electrification, has evolved into a Central Public Sector Undertaking under the Ministry of Power and a major non-banking finance company for the power sector. Its lending spans the full value chain, including generation, transmission, and distribution. The company also finances renewables and supports India’s shift toward a more diversified energy mix. In addition, REC has backed projects linked to coal blocks, pollution control measures such as flue gas desulphurisation (FGD), and supercritical thermal plants.

India’s 2030 backdrop: the 500 GW non-fossil target

India’s renewable and non-fossil capacity target for 2030 remains a key reference point for power sector capital allocation. The article data cites renewable energy capacity estimates rising to 500 GW by 2030, and also notes an estimate of 485 GW renewable energy by 2030, with non-fossil targeted at 500 GW. Current levels were cited at about 190 GW renewable energy and 198 GW non-fossil. Against this backdrop, REC has said it is giving the highest priority to financing renewable energy projects.

REC’s 2030 ambition: renewables at about 30% of the book

REC has set out a clear target to be a leader in renewable financing, aiming for about a 30% share of business and targeted loan outstanding of ₹3,00,000 crore by 2030. One data point in the provided text places the current level at ₹75,347 crore as of FY25-26. Another disclosure cited a plan to reach a total loan book of ₹10,00,000 crore by 2030, including renewable exposure of ₹3,00,000 crore. REC has also indicated it plans to increase renewables’ share in its loan book to 30% by 2030 from the current 10%.

FY25 sanctions: renewables take the largest share

REC’s loan sanctions for FY25 were described as balanced but oriented toward the transition, with renewables accounting for 31% and conventional generation 27% to meet base load needs. In absolute terms, the company sanctioned loans worth ₹3,59,000 crore in the last financial year, including ₹1,36,000 crore for renewable energy projects. The company’s stated focus covered solar, wind, and large hydro segments, aligning with India’s clean energy transition goals.

Disbursements: renewables grew 63% year-on-year

Beyond sanctions, disbursements to renewable energy were reported to have risen sharply. The data states renewable disbursements grew 63% year-on-year, increasing from ₹16,024 crore to ₹26,186 crore. This improvement matters because disbursements reflect execution on sanctioned pipelines rather than intent alone.

Renewable capacity financed: solar leads, storage is rising

REC has extended financial assistance to renewable energy projects aggregating to approximately 61,400+ MW of installed capacity, according to one disclosure. Separately, the text states REC has financed over 56,940 MW+ of clean energy capacity across multiple segments, with a detailed split that shows solar as the largest component.

The segment-wise clean energy capacity financed (as provided) includes:

• Solar: 24,409 MW
• Large Hydro: 10,145 MW
• Wind: 7,024 MW
• Pumped Storage Plants (PSP): 7,370 MW
• Hybrid projects (for example, solar plus wind): 7,120 MW
• Small Hydro: 255 MW
• Other technologies: 617 MW

Outstanding renewables exposure: multiple reported reference points

REC’s outstanding loan assets in the renewable energy space were stated at nearly ₹63,850 crore, pointing to substantial capital deployment. Another data point cites renewables exposure of about ₹52,000 crore to ₹53,000 crore as on March 31, 2025, alongside a total loan book of ₹5,67,000 crore. In a separate interview extract, REC’s renewables loan book was cited at ₹42,936 crore, with a stated target to grow to ₹3,00,000 crore by 2030, and an increase in renewables in FY24 over FY23 of 533%. These figures are presented as reported in the provided text and may reflect different classifications or reporting dates.

New green themes: corridors, manufacturing, hydrogen and storage

REC says it is actively pursuing financing for new and upcoming technology-based initiatives in the green space. The company also reported signing agreements worth ₹1,12,000 crore with renewable energy companies to finance projects expected to be implemented over the next five years. The listed areas include solar and wind hybrids, round-the-clock renewables, firm and dispatchable renewable energy (FDRE), floating solar, ultra-mega renewable parks, hydro projects, battery energy storage systems (BESS), pumped storage, green hydrogen production, and solar cell and module manufacturing. The company statement also referred to discussions on financing green energy corridors, wind turbine manufacturing, and the EV ecosystem including charging infrastructure.

Nuclear financing: ₹50,000 crore target by 2030, proposals awaited

REC has outlined plans to finance nuclear power projects, with a stated goal to build a ₹50,000 crore loan book dedicated to nuclear by 2030. For FY26, REC plans to sanction ₹15,000 crore of loans for nuclear power initiatives. The company also stated it intends to invest ₹1,00,000 crore annually in green energy projects, including nuclear, through the end of the decade. However, it has not yet received formal funding requests for nuclear projects, while preliminary discussions have taken place with Nuclear Power Corporation of India Ltd (NPCIL).

Thermal financing continues alongside the transition

REC has also described continued support for thermal power during the transition, linking it to energy security and rising demand. The text states REC may disburse up to ₹1,75,000 crore in loans for coal-fired plants by 2032, as India looks to add 80 GW of thermal capacity by then. REC’s director (projects) indicated the NBFC may finance up to 25 GW of capacity addition, with a total sanction range of ₹1,50,000 crore to ₹1,75,000 crore. An illustrative estimate was provided: if 1 MW costs about ₹10 crore, 25,000 MW would cost about ₹2,50,000 crore, and at 70% financing, REC’s funding could be about ₹1,75,000 crore.

State partnerships: Tripura MoU expected within a month

REC’s role is not limited to project-level lending and includes state-level engagement. Tripura is preparing to sign a memorandum of understanding with REC Limited to strengthen power infrastructure, with officials stating the agreement is expected within a month. The partnership is expected to provide financial and technical backing for upgrading and modernising power infrastructure to support growing energy demand and development projects.

Key numbers at a glance

Market impact and why the numbers matter

REC’s disclosures point to a financing strategy that is trying to match India’s build-out needs across renewables, grid integration, and firm capacity. Higher renewable sanctions and rising disbursements indicate that project pipelines are converting into capital deployment, while investments in storage, pumped hydro, and green corridors address integration constraints. At the same time, REC’s comments on thermal lending and potential disbursements up to ₹1,75,000 crore by 2032 underline that the transition is being financed alongside base load additions.

Conclusion

REC’s stated targets position it to scale renewables financing to ₹3,00,000 crore by 2030, while keeping room for nuclear lending and selective thermal funding tied to demand growth. Near-term signposts include FY26 nuclear sanction plans of ₹15,000 crore, continued renewable sanction momentum, and upcoming state collaborations such as the proposed Tripura MoU expected within a month.