Wednesday, August 10, 2022

CIL signs its first 100 MW solar power PPA with GUVNL, to set up a solar plant

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  • In its maiden venture into solar power, the world’s largest coal producing company had won a 100 MW solar power project in March in a reverse auction conducted by GUVNL

  • At a capital investment of at Rs 442 crore, CIL will execute the 100 MW project through a Solar EPC contractor

 
New Delhi: In a first, Coal India Limited (CIL) has signed a power purchase agreement (PPA) for the sale of 100 MW of solar power with Gujarat Urja Vikas Nigam Limited (GUVNL) on April 22. The tenure of the agreement period is for 25 years, CIL said in an official statement on Friday. In its maiden venture into solar power, the world’s largest coal producing company had won a 100 MW solar power project in March 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. 

Solar power generation lists high on CIL’s diversification portfolio

CIL is serious about its intent to pursue solar power generation as an alternative green energy source. The agenda lists high on its diversification portfolio. The company has rolled out a plan for 3,000 MW of solar power generation by 2024. Around Rs 13,500 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. 

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“Solar will replace coal as a key energy provider in the 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.

CIL to execute 100 MW solar power project through an EPC contractor

For the 100 MW bid that it won, CIL was awarded the work with a stipulation that it enters a PPA for the establishment of solar power project and supply the power generated to GUVNL within 18 months from the date of inking the PPA. 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).  

In a back-to-back arrangement, CIL has already issued a tender in advance for finalising a solar EPC contractor which is in advanced stage. The project will be executed within one year from the date of placement of the work order.

To accelerate its entry into development of cleaner renewable energy sources, CIL added two more fully-owned subsidiaries to its fold on April 16. These will function as SPVs to carry the company’s stated objectives. The two SPVs that were incorporated are ‘CIL Navikarniya Urja Limited’ and ‘CIL Solar PV Limited’. Both the registered entities will be situated in West Bengal.

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