After Aborting Module Making Plan, Coal India To Expand RE Production

After Aborting Module Making Plan, Coal India To Expand RE Production

India’s premier public sector coal mining company-Coal India Limited (CIL) has planned to boost the growth of renewables under its portfolio. This comes after the public utility aborted its earlier plan to produce solar panels.

Speaking recently at the Bloomberg BNEF Summit, Debashish Nanda, Director-Business Development of Coal India said that the company as of now has halted the plan to start solar module manufacturing. However, it said that it has planned to develop 5 GW of renewable capacities.

The Indian coal mining behemoth outlined its plans to expand its renewable energy portfolio and diversify into critical minerals. This strategy is crucial for the company as it aims to reduce its reliance on coal and adapt to the global push towards cleaner energy.

“Coal India has set a target to develop 5 gigawatts (GW) of solar power capacity. This is part of their broader goal to eventually reach 10 GW. The initial 5 GW plan includes generating 1.5 GW from solar panels at their existing mining sites. The remaining 3.5 GW will be developed in partnership with the state governments of Rajasthan, Gujarat, Maharashtra, and Karnataka,” Nanda said.

He also said that the company is also investing in pump storage projects. “These projects use excess solar energy to pump water to higher reservoirs. During peak demand, this water is then released to generate power. This approach helps balance the supply and demand of energy efficiently,” he said.

Focus on critical minerals 

In addition to renewable energy, Coal India is focusing on critical minerals too. They recently won a graphite mining auction in Madhya Pradesh, marking their first success in this area through a competitive bidding process. The company is also exploring opportunities in lithium, nickel, cobalt, molybdenum, phosphates, and potash. These minerals are essential for the growing renewable energy and electric vehicle markets.

Coal India is not only looking within India but also exploring international opportunities. They are targeting lithium resources in Argentina, Bolivia, and Chile, as well as nickel in Australia and potential mineral assets in Africa. This global approach is part of their strategy to ensure a steady supply of materials crucial for future technologies.

“The company is confident it will meet its goal of 5 GW of solar power by 2028, ahead of the 2029 deadline. With significant projects already underway and more planned, Coal India is positioning itself as a key player in the transition to renewable energy and critical minerals. These proactive steps reflect a trend among traditional energy companies to adapt to changing market dynamics and regulatory pressures,” Nanda said.