Coal India Ltd, the world’s largest coal producer, has invited bids to develop 5 gigawatts (GW) of renewable energy projects as part of its strategic diversification amid concerns over declining future coal demand.

The state-run company is seeking expressions of interest for the construction of 3 GW of solar and 2 GW of wind power capacity, according to tender documents published on its procurement portal on Tuesday. The final date for bid submissions is 16 September.

This marks Coal India’s most ambitious foray into green energy to date, as it grapples with subdued demand and eroding market share. The growing presence of renewable energy sources across the country has accelerated the shift away from coal, prompting the company to explore power generation and critical mineral sectors.

According to recent filings, Coal India has doubled its renewable energy targets in the past year and now aims to install 9.5 GW of clean energy capacity by March 2030. Currently, the company has 209 megawatts of solar power generation, as reported in its latest annual report.

“India’s clean energy transition has accelerated,” the company stated. “This shift raises concerns over long-term coal demand visibility, as renewables, storage and smart grids reshape the power sector.”

The challenge is further intensified by rising output from competitors. While Coal India accounted for about 75 per cent of the country’s coal production in the year ending March 2025, its share has been steadily declining in recent years.