Coal India Invites Bids For 4.5 GW Renewable Energy Supply On Long-Term Fixed Tariff Basis

Coal India Limited (CIL), a Government of India enterprise headquartered in Kolkata, has invited expressions of interest for the supply of renewable energy from its proposed 4.5 GW renewable power project. This includes 2,500–3,000 MW of solar capacity and 1,500–2,000 MW of wind capacity. The purpose of this project is to supply renewable power on a long-term basis at a fixed tariff through the Inter-State Transmission System (ISTS) network.

The EOI document dated 19th May 2025 outlines CIL’s plan to develop this massive renewable energy project in phases. The total energy supply is expected to reach 11,500 million units annually, with at least 60% coming from solar power. The expected commencement date for power supply is 24 months from the signing of the Power Purchase Agreement (PPA), which will run for 25 years. The minimum capacity utilization factor (CUF) for the solar segment is 26%, and for wind, it is 35%. The bid submission end date is 9^th June 2025.

Applicants interested in buying this power must propose a tariff either in Indian Rupees or US Dollars, and the chosen option must be mentioned. Tariffs quoted in USD will be adjusted for hedging costs, if any. The power procurer will be responsible for sourcing the entire power on a take-or-pay basis and must also provide a revolving Letter of Credit equivalent to three months’ tariff payment as part of the payment security mechanism.

CIL will handle the development aspects, including land acquisition, connectivity, and execution of engineering, procurement, and construction contracts. All necessary approvals for power delivery from the project site to the buyer’s facilities must be arranged by the buyer. Any additional charges, such as transmission, open access, or electricity duties beyond the delivery point, will be borne by the buyer.

As part of the submission process, applicants are required to provide company information, prior experience in power supply, and financial details such as annual turnover and net worth for the last three years. All documents must be uploaded via CIL’s e-tender portal. Offline submissions are not accepted.

CIL has clearly stated that this invitation for expression of interest may lead to a tendering process for final selection. The final terms of the PPA will supersede the terms mentioned in the EOI once executed.

The document emphasizes transparency, ethical standards, and adherence to Indian laws. CIL reserves the right to accept or reject any application without assigning reasons. Interested parties are urged to follow the instructions carefully and ensure all uploads are digitally signed and correctly submitted before the deadline.