Kolkata: Coal India (CIL) on Thursday signed a first of its kind power purchase agreement for sale of 100 MW solar power with Gujarat Urja Vikas Nigam (GUVNL). The tenure of the agreement period is for 25 years. In its maiden venture into solar power, the world’s largest coal producing company in March’21 had won a 100 MW solar power project in a reverse auction conducted by GUVNL.
“We feel upbeat that we could win in our first ever competitive bidding of solar auction. We will aggressively participate in more such auctions in future,” said a senior executive of CIL.
CIL is serious on its intent to pursue solar power generation as an alternative green energy source. This lists high on its diversification portfolio. The company has rolled out a plan for 3,000 MW of solar power generation by 2024. Around Rs13,500 crore is planned to be invested in solar power projects through the company’s internal resources, Special Purpose Vehicles (SPV) and bank loans. CIL is developing necessary in-house expertise and has created a team of competent officers for its solar initiatives.
“Solar will replace coal as a key energy provider in future and we are laying the groundwork to remain relevant in the country’s energy sector. We plan to venture into solar power generation in a big way”, said the executive. For the 100 MW bid that it won, CIL was awarded the work with a stipulation that it enters a PPA for establishment of a solar power project and supplies the power generated to GUVNL within 18 months from the date of inking the PPA. According to officials, to come up at a capital investment of at Rs 442 crore, CIL will execute the 100 MW project through a Solar EPC Contractor (engineering, procurement and construction).