REC Strengthens Green Infrastructure Push with Creation of Vizag Power Transmission Subsidiary – EQ
In Short : REC has incorporated Vizag Power Transmission as a wholly owned subsidiary to develop transmission infrastructure for a green hydrogen project. The move reflects REC’s strategic focus on supporting India’s clean energy transition by enabling reliable power evacuation and connectivity for emerging green hydrogen ecosystems, particularly in the Visakhapatnam region.
In Detail : REC has taken a significant step toward strengthening India’s green energy infrastructure by incorporating Vizag Power Transmission as a wholly owned subsidiary. The new entity has been created specifically to develop transmission systems required for a large-scale green hydrogen project, highlighting REC’s expanding role beyond conventional power financing into clean energy facilitation.
The formation of Vizag Power Transmission is aimed at building and operating critical transmission assets that will enable seamless power connectivity for green hydrogen production facilities. Transmission infrastructure plays a vital role in ensuring stable and reliable power supply, which is essential for the energy-intensive electrolysis process used in hydrogen generation.
This development reflects REC’s strategic alignment with India’s national goals for green hydrogen, which is seen as a key pillar in achieving long-term decarbonization. By supporting transmission infrastructure, REC is positioning itself as an enabler of the broader clean energy value chain rather than only a financial institution.
The Visakhapatnam region has emerged as a potential hub for green hydrogen due to its industrial base, port connectivity, and access to renewable energy resources. The new subsidiary will help facilitate power evacuation and grid integration for upcoming hydrogen and related green energy projects in the area.
From an operational standpoint, Vizag Power Transmission will focus on planning, developing, and maintaining transmission lines and substations required for the project. This will ensure that renewable power generated from solar and wind sources can be efficiently delivered to hydrogen production units.
The move also demonstrates REC’s intent to actively participate in infrastructure creation rather than limiting its role to funding and lending. By owning and operating transmission assets, REC can gain long-term revenue streams while contributing directly to national clean energy objectives.
Industry observers see this as part of a broader trend where power sector institutions are adapting to the evolving energy landscape. As green hydrogen and renewable energy projects scale up, the need for dedicated transmission networks is becoming increasingly critical.
The establishment of a project-specific subsidiary also allows for focused governance, faster decision-making, and better risk management. It enables REC to attract partnerships, investments, and technical expertise tailored to green hydrogen infrastructure.
Overall, the incorporation of Vizag Power Transmission marks an important milestone in REC’s transformation into a comprehensive clean energy enabler. The initiative strengthens India’s green hydrogen ecosystem and reinforces the role of transmission infrastructure as a backbone for the country’s sustainable energy future.
