IndiGrid Clinches LOIs for INR 1,000 Crore Transmission Projects, Powering 2GW Renewable Energy Zone

IndiGrid, India’s inaugural listed power sector infrastructure investment trust (InvIT), has secured Letters of Intent (LOI) from REC Power Development and Consultancy Limited for the construction of two greenfield inter-state transmission projects. These victories were attained through the Tariff Based Competitive Bidding (TBCB) mechanism, and both projects are set to be developed on a Build, Own, Operate, and Transfer (BOOT) basis for a 35-year period. The anticipated capital expenditure for these ventures exceeds INR 1,000 crores, with an estimated construction timeline of around 24 months for each project.

The first project, designed for the evacuation of power from the Dhule 2GW renewable energy zone, involves the construction of a 400/220 kV pooling station with a capacity of 4×500 MVA and a 400 kV D/C line spanning approximately 70 km. Post-commissioning, it is expected to generate annual transmission charges of around INR 530 million.

The second project, known as the Western Region Expansion Scheme XXXIII (WRES-XXXIII) Part-C, is slated to yield annual transmission charges of approximately INR 625 million post-commissioning. This initiative encompasses the establishment of two substations in Madhya Pradesh, including a 765/400 kV substation with a capacity of 2×1500 MVA and a 400/220 kV substation with a capacity of 2×500 MVA. Additionally, it involves the construction of a LILO single circuit 765 kV D/C line extending about 18 km. These substations are strategically designed to meet the electricity demand of a proposed green hydrogen plant in the vicinity, as well as cater to loads in Chhatarpur, Tikamgarh, and Jatara areas, and facilitate the interconnection of the 630 MW NTPC Barethi Solar Plant.

Harsh Shah, the Chief Executive Officer and Whole Time Director of IndiGrid, expressed enthusiasm about the acquisitions, highlighting the substantial growth in India’s transmission sector to address escalating energy demands and heightened evacuation requirements from both existing and forthcoming renewable generation hubs. Shah emphasized IndiGrid’s adeptness in developing greenfield projects as a means to foster growth, build a robust balance sheet, and accommodate recent capital raises while ensuring asset quality and reliability.