Coal India to Invest $3 Billion in Renewable Energy Projects

Coal India Limited (CIL), the country’s largest coal producer, has announced a ₹25,000 crore (approximately $3 billion) investment to expand its presence in renewable energy. The move marks a significant pivot from traditional coal-based operations toward clean energy development.

The state-owned company, which currently supplies around 80% of India’s coal, is planning to install 4.5 gigawatts (GW) of solar and wind power capacity. This investment is part of a broader strategy to support India’s transition to a greener energy future.

Clean Energy Partnerships

CIL has formed partnerships with Neyveli Lignite Corporation India Ltd (NLCIL) and National Thermal Power Corporation (NTPC) to develop solar projects. It has also signed agreements with Energy Efficiency Services Limited (EESL) and Coal India Navikarniya Urja Ltd (CNLUPL) to launch solar power and energy efficiency initiatives.

The new projects aim to support the growing demand for clean electricity, including supplying power to green ammonia production facilities, such as those developed by AM Green, which targets producing 5 million tonnes of green ammonia annually by 2030.

Economic Factors Driving the Shift

While CIL has outlined a goal of achieving net zero emissions, industry experts believe that economic factors are playing a significant role in the company’s shift to renewables. The cost of solar, wind, and battery storage technologies has dropped sharply, making them more affordable than coal-based power generation.

According to data from Our World in Data, solar panel prices have decreased by 90% in the last decade, while the cost of onshore wind has fallen by 70%, and battery storage by more than 90%.

Dual Energy Strategy

Despite the focus on renewables, India continues to rely heavily on coal to meet its growing energy demand. The government plans to add 45 GW of coal-fired power capacity over the next few years. However, it also aims to reach 330 GW of renewable energy capacity by 2030.

This dual-track approach reflects India’s need to balance energy security with its commitment to reduce emissions. CIL’s clean energy rollout comes at a time when climate change and rising temperatures are placing increased pressure on the country’s energy systems.

Global Trends Support Renewables

A report from the International Renewable Energy Agency (IRENA) noted that 81% of new renewable capacity added in 2023 delivered electricity at a lower cost than fossil fuels. The global average cost of utility-scale solar PV dropped to $0.044 per kilowatt-hour (kWh), and onshore wind to $0.033/kWh.

As technology advances and production scales up, renewable energy is expected to become even more cost-competitive.

Rooftop Solar Growth

India’s rooftop solar sector is projected to grow at an average rate of 33% annually between FY 2025 and FY 2027. By 2027, the country is expected to have 30 GW of installed rooftop solar capacity, according to PV Magazine India.

Coal India’s investment signals a major shift in strategy and reinforces the country’s broader ambitions under its energy transition roadmap. While coal remains essential in the short term, the long-term momentum is clearly moving toward renewables.