Serentica Renewables secures Rs 3000 Cr in debt funding from REC

REC Limited has agreed to lend Rs 3000 crores to Serentica Renewables, an Indian renewable energy provider with a focus on business and industry. The money would be used to help Serentica develop its upcoming 560 MW wind and solar capacity hybrid renewable energy projects in Karnataka. The company recently received a debt financing of Rs 2600 crores from PFC, a significant player in the power sector, just before receiving a capital infusion from REC.

According to Vivek Kumar Dewangan, Chairman & Managing Director of REC, "This transaction is in line with REC's expanding role in funding green projects and position itself as the focal agency for energy transition".

Serentica is building 4GW of renewable energy capacity across the nation to meet its clients' 24/7 needs for green energy. The total portfolio will provide more than 9 BUs of renewable energy per year, reducing CO2 emissions by 8.5 million tonnes. The medium-term goal of Serentica is to provide more than 40 billion clean energy units yearly while eliminating 37 million tonnes of CO2 emissions.

According to Pratik Agarwal, Director of Serentica Renewables, "With the funding secured, we will be accelerating the development of our first phase of projects, which will bring clean energy to difficult to reach energy intensive industrial consumers and help them move towards a net-zero future".

In the last ten years, the Indian renewable energy industry has experienced unheard-of expansion that rivals capacity expansions elsewhere in the globe. In the last seven or eight years, the country has experienced the highest growth in the installation of renewable energy capacity among the world economies. The recent momentum that has developed in favour of investing in these low-carbon energy transition assets is highlighted by the capital infusions in the renewables (RE) industry. The largest growth engine for the industry today is the fiercely competitive funding environment.