A recent development in the energy sector has brought attention to the potential renewable energy zone in the Khavda area of Gujarat, India. The Khavda-Bhuj Transmission Limited (KBTL) has recently filed a petition seeking a separate transmission license for implementing a transmission system designed to evacuate power from this renewable energy zone. The project, known as Phase-IV (7 GW): Part E1, aims to harness the vast renewable energy potential of the region and integrate it into the national grid.
KBTL, established as a special-purpose vehicle by PFC Consulting Limited, is tasked with implementing the transmission system under a tariff-based Competitive Bidding (TBCB) process. Adani Energy Solutions Limited (AESL), formerly Adani Transmission Limited, emerged as the successful bidder for the project and acquired 100% of KBTL’s shareholding.
The transmission system envisioned to evacuate 3 GW of renewable energy injection at Khavda Power Station under Phase-I, was initially granted a transmission license by the Central Electricity Regulatory Commission. Now, KBTL seeks a separate license to implement the transmission system for Phase-IV (7 GW): Part E1 under the Regulated Tariff Mechanism (RTM) mode.
The estimated completion cost of the transmission system stands at ₹216 crore. After completion, KBTL intends to approach the Commission for the determination of transmission charges under applicable regulations.
During the hearing process, KBTL demonstrated compliance with relevant regulations and received recommendations from the Central Transmission Utility of India Limited (CTUIL) for the grant of a transmission license under RTM mode. However, concerns arose regarding the need for approval from the Central Government for the transmission scheme under the Transmission Planning Rules.
In response to inquiries from the Commission, CTUIL clarified the procedural aspects, citing a specific procedure laid down by the Ministry of Power regarding project approvals based on cost thresholds. While awaiting clarification from the Ministry of Power, CTUIL has assured that necessary steps are being taken to address the Commission’s queries.
Despite KBTL not meeting the eligibility criteria outlined in the regulations, the Commission recognized the strategic importance of the transmission line and invoked its power to relax regulations. This decision enables KBTL to proceed with the project, subject to public notice inviting suggestions or objections.
The project’s significance lies in its contribution to India’s renewable energy goals and its potential to strengthen the national grid by integrating renewable power sources. The Commission’s decision reflects a balance between regulatory compliance and the imperative to expedite crucial infrastructure projects for sustainable energy development.
In conclusion, the granting of a transmission license to KBTL represents a pivotal step towards harnessing Gujarat’s renewable energy potential and advancing India’s energy transition agenda. As stakeholders await further developments, the project stands as a testament to the ongoing transformation of India’s energy landscape.
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