Coal India enters maiden solar power purchase agreement

27 Apr 2021 CW Staff

India's coal producer, Coal India Ltd (CIL), has entered its maiden power purchase agreement (PPA) for the sale of solar electricity.

CIL has signed the PPA with Gujarat state utility Gujarat Urja Vikas Nigam Ltd (GUVNL) to sell the power generated by the 100 megawatt (MW) solar plant for Rs 2.20 per kWh for a duration of 25 years.

In its maiden venture into solar power generation, CIL secured the 100 MW project in a 500 MW reverse auction conducted by GUVNL, which also saw NTPC, Sprng Energy, and Tata Power's TP Saurya allocated generation capacity at the same price.

CIL will execute the 100 MW project with a capital investment of Rs 442 crore through a solar engineering, procurement, and construction (EPC) contractor.

In a back-to-back arrangement, the coal company had already issued the tender to finalise the EPC company. The project will be executed within a year from the date of placement of the work order, Coal India said in a statement.

The fossil fuel business is following its counterpart NLC India (formerly Neyveli Lignite Corporation Ltd), by entering the solar sector.

This month, CIL announced two new business units—CIL Solar PV and CIL Navikarniya Urja, with both intended to capitalise on the growth opportunities in the solar sector. CIL Solar PV Ltd will manufacture ingots, wafers, cells and modules.

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