CERC Grants Transmission License to POWERGRID Subsidiary for Evacuation of 4.5 GW Renewable Energy in Gujarat

Representational image. Credit: Canva

In a significant development for India’s renewable energy sector, the Central Electricity Regulatory Commission (CERC) has issued a transmission license to POWERGRID Khavda II-C Transmission, a wholly-owned subsidiary of Power Grid Corporation of India (PGCIL). The license allows them to undertake the evacuation of 4.5 GW of renewable energy at the Khavda pooling station in Gujarat under Phase-II, Part C. The project will be executed on a build, own, and operate basis.


The competitive bidding process conducted by REC Power Development and Consultancy (RECPDCL) saw PGCIL emerge as the successful bidder, offering the lowest annual transmission charges of Rs. 2816.96 million for setting up the transmission system at Khavda Solar Park.

The CERC directive emphasizes that the evacuation of 4.5 GW of renewable energy under Phase II, comprising Parts A to D, must be completed within a similar timeframe. However, a mismatch was observed in the commissioning dates of Parts A, B, C, and D. To resolve this, CTUIL has been directed to amend the Transmission Service Agreements (TSAs) for all interlinked packages to align their commercial operation dates.

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The transmission license is granted subject to certain conditions, including compliance with Electricity Act requirements and Transmission Licence Regulations. The agreement will be valid for 25 years from the signing date, with an option to apply for another term two years before the initial license expires. The licensee is prohibited from engaging in electricity trading during the validity of the transmission license and must pay the stipulated license fee within 60 days to avoid violations.

Moreover, the licensee must ensure non-discriminatory open access to its transmission system for other licensees, such as distribution companies and generating firms, in accordance with relevant regulations. Strict adherence to performance standards, coordination with other licensees involved in upstream and downstream transmission projects, and submission of required information are also mandated.

This CERC-approved initiative represents a crucial step towards enhancing India’s renewable energy infrastructure and promoting a sustainable energy future for the country. The execution of the project is expected to reinforce India’s commitment to renewable energy adoption and efficient power transmission.

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