Brookfield's Andhra Project Wins ₹7,500 Cr REC Funding

A significant step towards the renewable energy sector of India has been taken with the Brookfield's Andhra Pradesh project, which has got a funding of ₹7,500 crore from REC Ltd., this being the largest-ever sanction by the state-run lender for a private project.

The funding is going to support a 1.04 GW hybrid renewable project that is being developed by Evren Clean Energy, which is a joint venture of Brookfield and Axis Energy, in Kurnool, Andhra Pradesh.

The project will have a total investment of ₹9,910 crore and it is a part of Brookfield's plan to expand the clean-energy footprint in India. Brookfield, with a 51.49% stake in Evren, is already managing over 46 GW of renewable capacity worldwide and is working on nearly 200 GW more.

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Industry experts interpret this REC financing as a powerful indicator of trust in India’s environmental change and the involvement of private investors in bringing about the solar and wind large-scale renewal infrastructure.

The mixed scheme of the project which will probably include both solar and wind will be very helpful in the stabilization of power generation; thus, it will be a supporting factor for the state’s increasing energy demand. For REC, this is a very logical step because it is in line with its priority of supporting such projects that are sustainable and contribute to the attainment of India’s clean-energy goals.

For Brookfield and Evren, it signifies their partnership in the realization of the country’s next phase of renewable energy development. Local employment increase, grid reliability improvement, and major contribution to the expansion of India's renewable capacity are the main benefits that will come from the project.