Coal India Signs its First Solar PPA, 100 MW Deal With GUVNL

Coal India Limited has signed its very first PPA for the sale of 100 MW of solar power to Gujarat Urja Vikas Nigam Ltd (GUVNL).

Coal India Limited (CIL) has announced that it has signed its very first Power Purchase Agreement (PPA) for the sale of 100 MW of solar power to the Gujarat Urja Vikas Nigam Ltd (GUVNL). The state-backed coal mining and refining entity has signed a 25-year agreement with the Gujarat utility.

The firm also stated that with a capital investment of Rs 442 crores, it will execute the 100 MW project which it had won in March in the tender auctions conducted by GUVNL, through a solar EPC contractor.

To this end, the entity had issued a tender – seeking developers for undertaking the work of complete development and handing over of the 100 MW solar PV power plant in Gujarat. The scope of work for the selected bidders will include the acquisition and handover of land, design, engineering, supply and procurement, construction, erection, testing, commissioning and O&M of the 100 MW solar PV grid-tied plant including evacuation infrastructure in Gujarat. The developers will have a period of 1 year to complete the work on commissioning of the plant followed by five years of O&M.

As per the tender documents, the bidder will be required to quote the year-wise Net Electrical Energy Generation Guarantee (NEEGG) for five years period at the metering point.

The Coal heavyweight has also said it is serious in its intent to pursue solar power as an alternative green energy source and for that, it has rolled out a plan for 3,000 MW of solar power generation by 2024. The firm plans to invest around Rs 13,500 crore in solar power projects through the company’s internal resources, Special Purpose Vehicles (SPV) and bank loans.

In February, Energy Efficiency Services Limited (EESL) had signed a Memorandum of Understanding (MoU) with Coal India Limited (CIL) for a strategic partnership for energy efficiency and resource conservation for de-carbonisation of CIL and its subsidiaries. 

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Ayush Verma

Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.

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