Coal India Limited (CIL), the world's largest coal producer, has secured its 1st solar power purchase agreement (PPA), for a 100 MW solar power plant. It has entered the 25-year agreement with Gujarat Urja Vikas Nigam Limited (GUVNL).
The coal power company will execute the project through a solar EPC contractor and expects an investment worth INR 4.42 billion ($59 million). It had won the project in a 500 MW phase XII grid connected solar auction held by GUVNL in March 2021 with the winning bid of INR 2.20 ($0.030) per kWh (see INR 2.20/kWh L1 Bid For GUVNL's 500 MW Solar Auction).
Back then it had also launched a look out for EPC company for the project to be set up in Gujarat (see EPC Tender For 100 MW Solar PV In Gujarat).
Announcing the same on its social media account, CIL said this reflects its philosophy of 'thinking beyond coal'. Speaking of which, the state backed enterprise has officially incorporated 2 wholly owned subsidiaries CIL Solar PV Limited to enter into manufacturing of solar value chain from ingot-wafer-cell-module, according to a stock exchange filing.
The other subsidiary incorporated is CIL Navikarniya Urja Limited for renewable energy. It had previously revealed its plans to enter solar manufacturing in February 2021 (see India PV News Snippets: CIL, EESL, BHEL, IR, APGCL).