On April 23, 2021, Coal India Limited(CIL) has signed its first solar power purchase agreement for the sale of 100 MW solar power with Gujarat Urja Vikas Nigam Ltd (GUVNL) with a Power Purchase Agreement (PPA) for 25 years.
- CIL entered into a PPA and supply the 100 MW power generated to GUVNL within 18 months with a capital investment of Rs 442 crore.
- The 100 MW project will be executed through a Solar EPC Contractor (engineering, procurement, and construction).
About CIL’s Initiatives under Solar Power:
- CIL plans for 3,000 MW of solar power generation by 2024 and it plans to invest nearly Rs13, 500 crore in solar power projects through the company’s internal resources, Special Purpose Vehicles (SPV), and bank loans.
- On April 16, 2021, CIL added two more fully owned subsidiaries ‘CIL Navikarniya Urja Limited’ and ‘CIL Solar PV Limited’ in West Bengal, to accelerate its entry into the development of cleaner renewable energy sources.
What is PPA?
PPA is a financial agreement where a developer arranges for the design, permitting, financing, and installation of a solar energy system on a customer’s property at little to no cost.
About Coal India Ltd(CIL):
Establishment – 1975
Chairman cum Managing Director (CMD)– Pramod Agrawal
Headquarter– Kolkata, West Bengal
About Gujarat Urja Vikas Nigam Ltd (GUVNL):
It is a state electricity regulation board located in Vadodara, Gujarat and it is owned by the Government of Gujarat.
Establishment – 1999
Managing Director – Shahmeena Husain