PayU India to power India’s rural banks with new climate finance mechanism
As the desire for businesses to take action on climate change becomes stronger, PayU has demonstrated its dedication to promoting sustainability and financial inclusion in India by obtaining Distributed Renewable Energy Certificates (D-RECs) from solar projects that are positively impacting rural banks across the nation.
D-RECs are a new way to finance climate initiatives and help move towards cleaner energy sources. They promote the use of clean, local electricity and make it easier for companies to invest in green energy. This is especially important in India, where power outages can make it difficult for people in rural areas to access banking services. In fact, many rural communities in India don't have access to bank accounts at all. By using D-RECs, we can increase transparency and support sustainable energy solutions that benefit everyone.
E-Hands Energy, a company from Chennai that offers renewable energy solutions in rural India, has finished a project providing solar energy to more than 920 rural banks in India. This project helps people who live in remote, rural areas to have access to the formal banking system by ensuring that banks have electricity even during power cuts. PayU has purchased D-RECs which are certificates confirming that renewable energy has been generated by some rural banking projects. These certificates will support the financial inclusion of people across India.
D-RECs are a great way to increase the impact of Renewable Energy Certificates (RECs). Typically, RECs are used for larger projects that have easier access to the grid and affordable financing. However, with D-RECs, smaller projects that may not have these resources can still benefit from them. For instance, E-Hands Energy has a banking program that could benefit from D-RECs. PayU India is a company that wants to help E-Hands Energy with these projects. They've decided to purchase D-RECs in order to pay for 89% of their electricity consumption. This is not only good for PayU India but also for E-Hands Energy. In fact, it will help E-Hands Energy finance additional renewable energy projects across India. E-Hands Energy has identified over 390 KWp of new projects that can be established in 220 villages around the country. These new projects will help displace polluting grid and off-grid energy sources, such as diesel generators, as well as grief-based electricity, which can be found all over India.
The Chief Operating Officer of PayU India, Mohit Gopal, expressed that the D-RECs project provides a creative and trustworthy means to speed up the distribution of clean and reasonably priced energy to the underprivileged areas of India. The long-term collaboration between PayU India and the D-REC Initiative, which is a member of Prosus group of companies, highlights our dedication to a greener economy, also one that provides dependable banking services to rural Indian areas, allowing more individuals to avail the benefits of organised financial services.
According to the founder and CEO of E-Hands Energy, Raghuraman Chandrasekaran, it is crucial for their company to make money from their projects through DRECs. This way, they can speed up the process of bringing solar power to rural areas by using the funds obtained from selling DRECs instead of spending more money on creating new financial projects.
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