REC Arm Establishes Company In Visakhapatnam To Power Green Hydrogen

19 Feb 2026 CW Team

Rural Electrification Corporation arm (REC) has established a new company in Visakhapatnam to provide dedicated renewable power for an upcoming green hydrogen project in the region.

The unit will focus on developing, owning and operating power infrastructure required to meet the specific needs of electrolysis based hydrogen production facilities and associated utilities.

The move is part of a broader strategy to accelerate renewable energy integration with industrial consumers and to facilitate low carbon fuel adoption.

Company executives indicated that the new vehicle will work with project developers, technology providers and grid operators to design robust supply arrangements and to ensure reliability of offtake.

The company will also explore hybrid solutions that combine solar and wind generation with energy storage to match the variable demand profile of electrolysers.

Regulatory approvals and land acquisition remain part of the preparatory work before full scale construction commences.

Financial models prepared for the initiative consider multiple funding sources including internal accruals, project finance and potential private partnerships to spread development risk.

The platform aims to lower the cost of renewable power procurement for hydrogen producers by creating scale in asset deployment and by optimising operations.

Officials expect that improved logistics and closer proximity of generation will reduce transmission losses and enhance project economics over the long term.

Local stakeholders were advised that the initiative is also intended to support job creation in construction, operations and auxiliary services while stimulating supply chains for green technologies.

The entity will be required to coordinate closely with state authorities and central agencies to secure clearances, grid connections and potential incentives under national energy transition programmes.

Further project milestones and definitive commercial agreements are expected to be announced as the company progresses through the development phases.

Rural Electrification Corporation arm (REC) has established a new company in Visakhapatnam to provide dedicated renewable power for an upcoming green hydrogen project in the region. The unit will focus on developing, owning and operating power infrastructure required to meet the specific needs of electrolysis based hydrogen production facilities and associated utilities. The move is part of a broader strategy to accelerate renewable energy integration with industrial consumers and to facilitate low carbon fuel adoption. Company executives indicated that the new vehicle will work with project developers, technology providers and grid operators to design robust supply arrangements and to ensure reliability of offtake. The company will also explore hybrid solutions that combine solar and wind generation with energy storage to match the variable demand profile of electrolysers. Regulatory approvals and land acquisition remain part of the preparatory work before full scale construction commences. Financial models prepared for the initiative consider multiple funding sources including internal accruals, project finance and potential private partnerships to spread development risk. The platform aims to lower the cost of renewable power procurement for hydrogen producers by creating scale in asset deployment and by optimising operations. Officials expect that improved logistics and closer proximity of generation will reduce transmission losses and enhance project economics over the long term. Local stakeholders were advised that the initiative is also intended to support job creation in construction, operations and auxiliary services while stimulating supply chains for green technologies. The entity will be required to coordinate closely with state authorities and central agencies to secure clearances, grid connections and potential incentives under national energy transition programmes. Further project milestones and definitive commercial agreements are expected to be announced as the company progresses through the development phases.

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