Indian fossil fuel incumbents launch multi-GW solar initiative

Image: Coal India.

Two of India’s state-owned fossil fuel companies have launched a joint venture to develop solar PV assets in the country.

Coal mining and refinery firm Coal India is to partner with lignite and thermal power company NLC India are to develop solar PV and thermal power assets throughout the country, a note to India’s national stock exchange issued on Friday said.

The JV will be owned equally by Coal India and NLC, with each company nominating three directors to the as-yet-unnamed company’s board.

Coal India celebrated the signing of a Memorandum of Understanding on Twitter.

While no further details have been forthcoming from either company, local reports suggest the joint venture will receive an investment of INR120 billion (US$1.6 billion) to bring forward roughly 3GW of additional solar capacity.

Although NLC’s generation portfolio primarily comprises coal and lignite-fired plants, it does have more than 1.3GW of solar PV output in the country. Its website currently states it has an additional 2,651MW of solar capacity in its pipeline, however it is unclear as to whether this includes any prospective capacity additions from Friday’s announcement.

The announcement follows considerable activity in the Indian solar market, not least of all renewed discussion around the country’s intent to stimulate a domestic solar manufacturing through the implementation of punitive tariffs on components imported from China.

Late last week two existing domestic manufacturers said however the duties – planned to increase to 40% in some cases next year – do not go far enough, instead suggesting duties of at least 50% would be required to enable homegrown manufacturers to compete.  

Read Next

August 11, 2022
The financial adversity of India’s struggling distribution companies (Discoms) has been reflected in a significant downgrading in the latest rankings by the Ministry of Power, giving yet more concern for renewable energy players
August 8, 2022
India deployed 8,359MW of solar PV in the first half of the year, marking a significant increase of 71% compared to the same period last year
August 3, 2022
Tata Power subsidiary Tata Power Green Energy has commissioned a 225MW hybrid wind and solar project in the Indian solar hotbed state of Rajasthan.
August 1, 2022
India installed more than 12GW of solar PV in the financial year 2022 (FY2022) but this is expected to soar to more than 20GW in FY2023 as the country looks to accelerate its solar deployment, according to JMK Research.
July 29, 2022
Thin-film module manufacturer First Solar will consider expanding its production footprint in the US if proposed legislation that includes manufacturing credits becomes law, the company’s CEO has said.
July 18, 2022
India’s government will stop the electronic reverse auctions of renewables projects in the country amid fears it is leading to “unhealthy competition”.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event