Image Source: The Hindu Business Line
In a bold pivot from its legacy as the world’s largest coal producer, Coal India Limited (CIL) has unveiled its most ambitious renewable energy strategy to date. As India accelerates its clean energy transition, CIL is stepping into the solar and wind sectors with a plan that could redefine its role in the country’s energy ecosystem.
Key Developments in Coal India’s Green Strategy
The company has invited bids for the construction of 3 gigawatts of solar and 2 gigawatts of wind projects, totaling 5 gigawatts of new renewable capacity.
This marks a significant leap from its current 209 megawatts of solar generation, as reported in its latest annual filing.
CIL aims to install 9.5 gigawatts of renewable energy capacity by March 2030, doubling its target from the previous year.
Why Coal India Is Rethinking Its Future
Declining Market Share
Coal India produced about 75 percent of India’s coal in the fiscal year ending March 2025.
However, its dominance is waning due to rising competition and the rapid expansion of renewable energy across the country.
Demand Uncertainty
The company’s annual report highlights concerns over long-term coal demand visibility.
With smart grids, energy storage, and renewables reshaping the power sector, coal’s future is increasingly uncertain.
Strategic Diversification
Beyond renewables, CIL is exploring opportunities in critical minerals and power generation.
This diversification is seen as essential to maintaining relevance in a decarbonizing economy.
Breakdown of the Renewable Expansion Plan
Solar Projects
Expressions of interest have been sought for 3 gigawatts of solar installations.
These projects will be spread across various subsidiaries and states, including a 1,190 MW solar park in Bikaner, Rajasthan.
Wind Projects
An additional 2 gigawatts of wind energy capacity is planned, marking CIL’s entry into a new segment of renewables.
Ongoing Installations
Work has already been awarded for 379 MW of solar capacity across subsidiaries such as MCL, ECL, NCL, SECL, WCL, BCCL, and CCL.
Ground-mounted and rooftop solar projects totaling 195 MW are expected to be commissioned by the end of FY 2025-26.
Implications for India’s Energy Transition
National Goals
India aims to deploy 500 gigawatts of renewable energy by 2030.
Coal India’s pivot supports this national ambition and aligns with the country’s net-zero emissions target by 2070.
Energy Security
While coal remains a backbone of India’s power supply, the shift to renewables is essential for long-term sustainability.
CIL’s move helps balance energy security with environmental responsibility.
Economic Impact
The renewable push could create thousands of jobs in construction, operations, and maintenance.
It also opens doors for public-private partnerships and foreign investment in India’s green infrastructure.
Challenges Ahead
Execution Risks
Large-scale renewable projects require robust grid integration and land acquisition, which can be complex and time-consuming.
Financial Viability
Transitioning from coal to renewables involves significant capital expenditure and a shift in business models.
Policy Support
Continued government backing through incentives, regulatory clarity, and infrastructure investment will be critical to success.
Conclusion
Coal India’s renewable energy blueprint marks a transformative moment for the company and the country. By embracing solar and wind, CIL is not just hedging against the decline of coal—it is actively shaping India’s clean energy future. As the September 16 bid deadline approaches, all eyes are on how this legacy miner will evolve into a green energy powerhouse.
Sources: Moneycontrol, Economic Times Energy, Mission Energy India
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