Vivek Kumar Devangan, the Chairman and Managing Director of the government-backed REC, recently indicated REC’s anticipation of financing over 50,000 electric buses within the next two to three years, owing to burgeoning demand. Additionally, REC projects a substantial tenfold increase in funding, totaling over Rs 3 lakh crore by 2030, allocated towards diverse renewable energy sources.
According to Devangan, REC’s funding for all green energy projects, encompassing solar, wind, and electric mobility, has witnessed a remarkable surge of 533% for the fiscal year concluding in 2023–2024, soaring from Rs 21,554 crore in FY23 to Rs 1,36,516 crore. This augmented funding encompasses initiatives in green hydrogen and electric mobility sectors.
According to some top officials at REC, it plans to finance OEMs’ gross cost contracts (GCC model) from various state transportation projects, India’s PM-eBus Sewa Scheme, and private transportation firms seeking to transition their diesel-powered fleets to electric models.
TSC Bosh, Executive Director of REC, emphasised the company’s pivotal role in funding bus programmes across the country, particularly through RFPs issued by state transport entities, showcasing strong support for India’s electric bus mobility journey, including private sector involvement.
Bosh asserted, “We have outlined funding plans for 50,000 buses because we have aggressive plans to promote electric mobility in both the state transport bus industry and private tour and travel operators that want to transition to electric mobility.”
Following a year of no payments in FY23, REC Ltd. allocated Rs 7997 crore towards green hydrogen projects in FY24. Moreover, REC’s investments in solar energy more than doubled, surging from Rs 9031 crore in FY23 to Rs 20,956 crore in FY24.
Devangan predicted a significant decline in green hydrogen prices, foreseeing a drop from the current USD 5–6 to USD 1 by 2026–2027, mirroring the trajectory of solar power prices, which plummeted from Rs 16 per kWh to Rs 2.5–3 per kWh with increased market competition.
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Furthermore, REC pledged financial support towards the production of green ammonia, in high demand across Western European nations such as Germany, the UK, and France.