New Delhi: Coal India Limited (CIL), the state-owned coal mining giant, has announced a significant step towards expanding its renewable energy portfolio by inviting Expressions of Interest (EoIs) for the development of 3 gigawatts (GW) of solar Engineering, Procurement and Construction (EPC) projects across India. This ambitious initiative underscores CIL’s commitment to diversifying its energy mix and contributing to India’s clean energy goals, aligning with the nation’s push for sustainable development.
The EoIs, floated to identify capable EPC contractors, aim to facilitate the design, engineering, supply, construction, erection, testing, and commissioning of solar power projects, along with their operation and maintenance. The projects are expected to be strategically located across various states, leveraging CIL’s extensive land resources, including reclaimed mined-out areas, to maximize solar energy generation. This move is part of CIL’s broader strategy to transition from its core coal-based operations to renewable energy, addressing environmental concerns and supporting India’s renewable energy target of 500 GW by 2030.
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CIL’s Growing Solar Energy Footprint
CIL has been actively tapping into solar energy as part of its diversification into cleaner energy sources. The company has already made significant strides in establishing solar power plants, particularly through its subsidiaries and dedicated renewable energy arm, CIL Navikarniya Urja Limited. According to reports, CIL has set a target to achieve 3,000 MW (3 GW) of solar energy capacity by 2025-26, reflecting its commitment to sustainable practices and carbon reduction.
To date, CIL has commissioned approximately 23.5 MW of solar projects across its subsidiaries, which have been generating cleaner energy. In the fiscal year 2022-23, these installations produced 6.83 million units of electricity. Additionally, ground-mounted solar projects totaling 279 MW are in various stages of installation, and CIL is exploring further opportunities to utilize mined-out land parcels for solar development. Plans are also underway for an additional 20 MW of rooftop solar projects, further expanding its renewable energy footprint.
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A notable project in CIL’s solar portfolio includes a 100 MW solar plant dedicated to Gujarat Urja Vikas Nigam Limited (GUVNL). Furthermore, CIL has entered into a Memorandum of Understanding (MoU) with Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL) for a solar power project in Bikaner, Rajasthan. Recently, CIL issued an EPC tender for a 1 GW (AC) solar project in the Pugal tehsil of Bikaner, to be developed either independently or through a proposed joint venture with RRVUNL. This project mandates a minimum Capacity Utilization Factor (CUF) of 28% and requires interconnection with the pooling substation at the solar park through a dedicated 33 kV cable/line.
In another development, CIL invited bids in September 2024 for a 300 MW grid-connected ground-mounted solar project at the Khavda Solar Park in Gujarat, further showcasing its aggressive push into solar energy.
Installed Capacity of Coal Companies’ Solar Plants
While CIL dominates the coal sector, contributing to 85% of India’s coal production, its foray into solar energy is gaining momentum. As of now, the installed solar capacity across CIL’s subsidiaries stands at approximately 23.5 MW, with operational plants generating 6.83 million units of electricity in FY 2022-23. The 279 MW of ground-mounted solar projects under installation and the planned 20 MW of rooftop solar projects indicate a robust pipeline. Additionally, the 100 MW solar plant for GUVNL and the proposed 1 GW project in Rajasthan are key milestones in achieving the 3 GW target by 2025-26.
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Strategic Shift Towards Sustainability
CIL’s push into solar energy reflects a strategic shift for the coal giant, traditionally responsible for 55% of India’s power generation and 40% of its primary commercial energy needs. The establishment of CIL Navikarniya Urja Limited underscores its intent to integrate renewable energy into its core operations. By leveraging its vast land resources and partnering with state utilities like RRVUNL, CIL is positioning itself as a key player in India’s renewable energy sector.
The invitation of EoIs for 3 GW of solar EPC projects marks a pivotal moment in CIL’s renewable energy journey. As the company continues to execute its solar projects and explore innovative ways to utilize its land assets, it is poised to make a significant contribution to India’s clean energy landscape, balancing its coal legacy with a sustainable future.
