REC Ltd., a state-owned Maharatna Non-Banking Financial Company (NBFC), has announced a historic approval of ₹7,500 crore to finance a 1.04 Gigawatt (GW) hybrid energy project in Kurnool, Andhra Pradesh. The total investment for the project is projected to be ₹9,910 crore. This project is being developed by Evren, a clean energy platform in India launched by global infrastructure investor Brookfield in partnership with Axis Energy, where Brookfield holds a 51.49% stake. This notable approval marks the largest sanction by REC for any private sector initiative in its history, indicating a significant advancement for India’s renewable energy sector.
The 1,040 MW (1.04 GW) project is the first to be designated as a Firm Dispatchable Renewable Energy (FDRE) project with state connectivity and a state Power Purchase Agreement (PPA). It will consist of a hybrid setup of 640 MW of wind and 400 MW of solar energy. Initially planned as a “bundling, balancing, and banking (BBB)” project using gas for balancing, it has now transitioned to battery storage to address peak demands. A representative from REC Ltd.
stated, “This record sanction of ₹7,500 crore is a testament to REC’s commitment to financing India’s clean energy transition and our confidence in strong private sector partners like Brookfield.” The representative added, “This 1.04 GW hybrid project is not only significant in scale but also groundbreaking in its innovative FDRE structure, which integrates wind, solar, and battery storage. It establishes a new standard for financing and developing large-scale renewable projects to ensure reliable power supply.” The investment also validates the new ‘Integrated Clean Energy Policy’ initiated by the Chandrababu Naidu government in October 2024, which has expedited clearances and offered incentives to attract green investments.
Connor Teskey, President of Brookfield Asset Management, expressed, “We are excited to collaborate with REC on this pioneering project. This financing represents a milestone for our Evren platform and a considerable advancement for renewable energy in India. We appreciate the proactive support from the Government of Andhra Pradesh; their new Integrated Clean Energy Policy is fostering a stable and inviting environment for large-scale investments.
This project is the first phase of our 3 GW pipeline in the state and a crucial component of our 11 GW national plan.” The investment follows a productive meeting in September between Andhra Pradesh Minister for IT and Electronics, Nara Lokesh, and Brookfield Asset Management President, Connor Teskey, in London to discuss future investments in the state. Nara Lokesh welcomed the news, stating, “This is a historic investment for Andhra Pradesh. Brookfield’s decision, supported by REC’s substantial financial approval, is a direct outcome of our new Integrated Clean Energy Policy. We are establishing a premier ecosystem for green energy, and this 1.04 GW project in Kurnool is merely the beginning.
We are also actively pursuing investments in AI-ready data centers and real estate, and this partnership demonstrates that Andhra Pradesh is open for business.” Evren has a project pipeline exceeding 3 GW in Andhra Pradesh, spanning Kurnool and Anantapur, as part of a broader 11 GW national strategy. The company is also looking into opportunities in integrated solar module manufacturing, pumped storage, battery storage, e-mobility, and green ammonia in the state.
