CIL, GUVNL Inks Maiden Power Purchase of 100 mw Solar Power

State-owned Coal India Ltd (CIL) enters into its first ever power purchase deal with Gujarat Urja Vikas Nigam Ltd (GUVNL) for the trade of 100 mw solar power. The duration of power purchase agreement (PPA) is 25 years, states CIL.

In a statement, CIL says, "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."

CIL acquired 100 mw solar power project in March in a reverse auction conducted by GUVNL. For the 100 mw bid that it won, CIL has been bestowed the work with a condition that it enters a PPA for formation of a solar power project and supplies the power generated to GUVNL within 18 months from the date of signing the PPA.

CIL would execute the 100 mw project through a solar (engineering, procurement and construction) EPC contractor. It has already sent a tender in advance for finalising a solar EPC contractor that is in an advanced stage.

However, the project would be executed within one year from the date of placement of the work order.

Furthermore, the company has rolled out a plan for 3,000 mw of solar power generation by 2024.About 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, the company said.

It further adds, "Solar will replace coal as a key energy provider in 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."

To encourage its entry into development of cleaner renewable energy sources, CIL on April 16, added two more fully-owned subsidiaries to its fold. These will function as special purpose vehicles (SPVs) to carry the company's stated objectives.

The two SPVs that were merged are 'CIL Navikarniya Urja Ltd' and 'CIL Solar PV Ltd'. Together the registered entities will be situated in West Bengal.

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