REC : Accelerating Sustainable Energy Sector Growth with the Power of AI

Write-up Courtesy REC Limited | New Delhi

As the leading Maharatna NBFC, REC is continuously pioneering innovative ways to advance progress across the power and infrastructure sector. By harnessing the potential of Artificial Intelligence (AI) and Big Data, REC is now unlocking a new era of enhanced efficiency and service excellence.

Artificial Intelligence and Machine Learning- the imitation by computers and robots of the intelligence inherent in humans for planning, decision making, improved communication and processing large amounts of data- is significantly changing industries across the world.

The energy landscape itself is no longer a static environment; it’s an ecosystem in constant flux, driven by advancements in technology and evolving societal needs. Standing at the forefront of this dynamic sector, REC is proactively integrating cutting-edge technologies like artificial intelligence (AI), block chain, and big data analytics to enhance internal operations while also leading the integration of AI/ML across India’s power distribution sector.

Vision- Driven Investments

REC’s strategic investment and growth is driven by its deep commitment to aligning its funding with the nation’s broader development goals.

Driven by its Maharatna status, REC is aggressively targeting a massive expansion of its total Loan Book from the current ₹5.82 lakh crore to a landmark ₹10 lakh crore by FY2030. A central component of this future-focused growth is strategic diversification. The government has authorized REC to lend up to one-third of its annual sanctions into vital Non-Power Infrastructure, including metro rail, expressways, airports, and social facilities like hospitals.

REC is also prioritizing Renewable Energy (RE) financing to align with India’s 500 GW RE capacity goal by 2030. REC aims to be a leader in this transition, targeting a loan outstanding of ₹3 lakh crore (30% of its business) by 2030, a significant increase from the current ₹68,033 crore. This includes financing solar, wind, hydro, pumped storage, and new green technologies like Green Hydrogen and Ammonia.

The pace of this comprehensive expansion is further accelerated by the deep integration of cutting-edge technology across all operations.

Data-Informed ESG Excellence

REC has cemented its commitment to sustainability by achieving the top-rank in the latest NSE ESG Ratings. This outstanding performance is a direct result of a comprehensive three-year strategy initiated with the company’s first-ever ESG Policy, guided by the REC Board of Directors.

Key drivers of this success include strategic planning, benchmarking against global standards like Climate Disclosure Project (CDP), S&P CSA, and developing a clear Net-Zero Pathway. Operationally, REC has demonstrated excellence by achieving 100% green power and zero discharge for its Corporate Office, which has also earned a GRIHA 5 rating, alongside major EV fleet conversions and enhanced HR policies covering Human Rights and Ethics. The company has also significantly bolstered transparency through enhanced disclosures in its Business Responsibility and Sustainability Report (BRSR) and publishing the 2nd GRI referenced ESG Report.

Looking ahead, REC is further ensuring its sustained ESG leadership by leveraging data analytics and AI to optimize resource management, enhance risk assessment, and drive smarter, more sustainable decision-making across all operations.

Digital Transformation with RDSS

A core component of the power sector’s digital transformation is the deployment of smart meters under the Revamped Distribution Sector Scheme (RDSS). REC and PFC are the nodal agencies for facilitating the implementation of the scheme.

More than 40 million smart meters have been deployed across India. These devices provide real-time energy usage data to consumers for better budgeting and to Distribution Utilities for crucial energy accounting and audits. The shift to prepaid smart meters also improves utility cash flow and billing efficiency.

Grid modernization also includes sanctioning SCADA/DMS systems under RDSS for remote monitoring and control, significantly reducing outages and improving fault response times. This digitalization is key to seamlessly integrating renewable energy sources into the distribution network, facilitating India’s clean energy transition.

A Future-Ready Energy Sector

Further advancing the application of data-driven intelligence tools within the power sector, REC, under the aegis of the Ministry of Power and in association with PFC Limited., conducted a two-day National Conference on the Use of AI/ML in the Power Distribution Sector under the Revamped Distribution Sector Scheme (RDSS) on December 6-7, 2025, at Bharat Mandapam, New Delhi.

The Conference, themed “Harnessing AI/ML for Smart, Efficient and Sustainable Power Distribution”, showcased cutting-edge use cases of smart meter data analytics, integrated IT/OT systems, and Smart Home Automation Solutions that drive innovation, improve operational efficiencies, and enhance consumer satisfaction across Distribution Companies (DISCOMs) in the country.

During the Conference, AI/ML-driven data analytics and practical use cases leveraging Smart Meter Technology and other integrated IT/OT systems were demonstrated. The two-day event successfully promoted the adoption of advanced technologies such as Block chain, the Internet of Things (IoT), and smart home automation for enhanced power distribution management. It also served as a valuable platform for knowledge sharing and the exchange of best practices aimed at improving operational efficiency, strengthening grid reliability, and advancing sector-wide sustainability goals.

Shri Manohar Lal, Hon’ble Union Minister of Power and Housing & Urban Affairs, graced the event and noted that the that the AI/ML based solutions, smart meter analytics, digital twins, predictive maintenance, theft detection intelligence, appliance-level consumer insights, automated outage prediction and Gen-AI-based decision support can transform both consumer experience and operational efficiency.

Speaking at the National Conference, Shri Pankaj Agarwal, Secretary, Ministry of Power, highlighted the Ministry’s commitment to strengthen digitalization across DISCOMs and promote adoption of AI/ML-based solutions that deliver measurable operational and financial improvements. He stressed the importance of capacity building, secure data-sharing frameworks, and interoperability to ensure that innovations showcased during the conference can be scaled nationwide to facilitate the energy transition across the country.

REC-CMD speaking during the conference

Strengthening Digital Infrastructure with India Energy Stack (IES)

Another major stride towards leveraging AI to transform the power sector has been the initiation of the India Energy Stack (IES) by the Ministry of Power.

The IES initiative, which is envisioned as the unified, secure, and interoperable digital backbone for the entire energy value chain, is being advanced with REC Limited as the Nodal Agency and FSR Global as the Knowledge Partner.

The India Energy Stack, defined as a DPI, aims to identify and connect stakeholders and assets, and facilitate open data exchange through uniform specifications and standards, thereby unlocking transparent, reliable, inclusive, efficient, and affordable energy access.

The India Energy Stack (IES) project is scheduled to be completed by July 2026.

Driving the Energy Evolution

From powering India’s Green Revolution by energising agricultural pump sets to championing the rise of green technologies in the energy ecosystem, REC has remained driven by one consistent purpose- meeting the nation’s needs today while preparing it for the demands of tomorrow.

As REC continues to play a pivotal role in advancing the power sector, it recognises the importance of staying ahead of technological change. This commitment to progress is steering REC to actively explore emerging innovations in Artificial Intelligence and harness their potential to shape a smarter, more resilient and future-ready energy landscape.

(Shilpa Bichitra | Special Edition | 2025)