CERC Approves Transmission Charges For Solapur Renewable Energy Project Following Competitive Bidding Process

On May 31, 2024, the Central Electricity Regulatory Commission (CERC) in New Delhi issued an order regarding a petition filed by Solapur Transmission Limited (STL). This petition was about adopting transmission charges for a new transmission system in Solapur, Maharashtra. STL is responsible for developing this transmission system, which will handle power generated from renewable energy projects in the Solapur Special Economic Zone.

The case involved several parties, including STL, the Central Transmission Utility of India Limited, and various regional power committees and electricity distribution companies from states like Gujarat, Maharashtra, and Goa, among others. The petitioner, STL, requested the adoption of transmission charges discovered through a competitive bidding process and sought to make the project part of the inter-state transmission system. This would ensure that the recovery of transmission charges aligns with existing regulations.

The hearing for this petition took place on May 8, 2024. During the hearing, STL’s representative emphasized that the petition had been served to all respondents and urged the adoption of the discovered transmission charges. The CERC instructed STL to include beneficiaries from the Western Region as parties to the petition. Despite these instructions, no replies were received from the respondents.

The CERC reviewed the submissions from STL, the Bid Process Coordinator (PFC Consulting Limited), and the Central Transmission Utility of India Limited. The commission considered the guidelines issued by the Central Government for tariff-based competitive bidding for transmission services. These guidelines outline the process for selecting a transmission service provider (TSP) through a transparent bidding process and emphasize the need for competitive and fair bidding practices.

The National Committee on Transmission had earlier decided that the Solapur project should proceed via competitive bidding. Consequently, the Ministry of Power appointed PFC Consulting Limited as the Bid Process Coordinator. STL was established as a wholly-owned subsidiary of PFC Consulting Limited specifically to handle this project and eventually be acquired by the successful bidder.

The bidding process began with the publication of a global invitation for qualification on June 23, 2023. Key milestones in the process included the submission and opening of bids, an e-reverse auction, and the final evaluation of bids. The final selection saw Torrent Power Limited emerging as the successful bidder.

The project’s scope includes establishing a new substation at Solapur with specific technical requirements and constructing a 400 kV double circuit line to connect the new substation to an existing substation. The entire project is scheduled for completion within 24 months from the effective date.

A bid evaluation committee comprising members from various relevant organizations was formed to oversee the process. This committee ensured that all bids met the technical criteria and evaluated the bids based on the lowest transmission charges quoted.

The CERC’s order acknowledged the thorough and transparent bidding process and the compliance with the guidelines issued by the Central Government. The commission adopted the transmission charges discovered through this process, facilitating the project’s integration into the inter-state transmission system. This decision supports the development of infrastructure necessary for evacuating power from renewable energy projects in the Solapur SEZ, contributing to the region’s energy needs and the broader national objective of increasing renewable energy capacity.

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