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Eye on global energy market, Reliance buys REC Solar Holdings in $771-million deal

Headquartered in Norway, REC has its operational headquarters in Singapore and regional hubs in Europe, Australia, North America, and Asia-Pacific.

By: ENS Economic Bureau | Mumbai |
October 11, 2021 4:30:34 am
REC Group is an international pioneering solar energy company leading the industry through its technological innovations and superior, high efficiency and long-life solar cells and panels for clean and affordable solar power, RNESL said in a statement.

Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of RIL, on Sunday said it has acquired 100 per cent shareholding in REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co for an enterprise value of $771 million (Rs 5,780 crore).

Headquartered in Norway, REC has its operational headquarters in Singapore and regional hubs in Europe, Australia, North America, and Asia-Pacific.

The 25-year-old company has three manufacturing facilities — two in Norway for making solar grade polysilicon and one in Singapore making photo voltaic (PV) cells and modules.

The heterojunction (HJT) technology used by REC helps its modules surpass the performance of other commonly used technologies in the industry.

REC Group is an international pioneering solar energy company leading the industry through its technological innovations and superior, high efficiency and long-life solar cells and panels for clean and affordable solar power, RNESL said in a statement.

“REC’s Alpha and Alpha Pure range of solar modules are recognized as among industry leaders in efficiency, reliability and long guaranteed life,” Reliance Industries Ltd (RIL) said.

REC has over 600 utility and design patents, of which 446 are granted and balance are under evaluation. “It always had a strong focus on research and development and now, coupled with Reliance’s world-class innovation, scale, and operational excellence, will further accelerate path breaking technological developments and introduction of new products,” RIL added.

Explained

May help cut solar panel costs

The acquisition of REC Solar Holdings may boost manufacturing of PV cells at RIL’s Dhirubhai Ambani Green Energy Giga Complex in Jamnagar. This could help the conglomerate lower the cost of solar panels and create a manufacturing hub.

The statement further said, “REC has more than 1,300 employees globally. They will become proud members of the Reliance Family after the successful completion of the transaction and become an integral part of the team that is driving one of the world’s most ambitious missions to drive green energy transition.”

REC was the first to introduce half cut Passivated Emitter and Rear Cell (PERC) technology, which is adopted by all major manufacturers, while REC has moved on to its next generation HJT technology. REC’s Norway operation is distinguished by its low carbon footprint in the manufacture of polysilicon.

Reliance said it will strongly support REC’s planned expansions including 2-3 GW cells and module capacity in Singapore, brand new 2 GW cells and module units in France and another 1 GW modules plant in the US.

In India, Reliance plans to use this technology in its fully integrated, metallic silicon to PV panel manufacturing giga factory at Dhirubhai Ambani Green Energy Giga Complex, Jamnagar, initially starting with 4 GW per annum capacity and eventually growing to 10 GW per annum.

“The acquisition of REC will help Reliance with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including in the US, Europe, Australia and elsewhere in Asia,” it said.

Mukesh Ambani, Chairman, Reliance Industries, said, “Together with our other recent investments, Reliance is now ready to set up a global scale integrated photovoltaic giga factory and make India a manufacturing hub for lowest cost and highest efficiency solar panels. We will continue to invest, build and collaborate with global players to achieve the highest reliability, efficiency and economies to deliver high-quality, reliable power at affordable prices to our customers both in India and markets worldwide.”

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