The Central Electricity Regulatory Commission (CERC) recently issued an order approving the adoption of transmission charges for a significant project aimed at evacuating renewable energy from the Khavda renewable energy zone in Gujarat. This transmission system, part of Phase-IV for a 7 GW capacity under the Build, Own, Operate, and Transfer (BOOT) model, was developed by Khavda IV-E2 Power Transmission Limited, a wholly-owned subsidiary of the Power Grid Corporation of India Limited.
The project was awarded through a transparent tariff-based competitive bidding process coordinated by REC Power Development and Consultancy Limited (RECPDCL). The competitive bidding process included multiple stages, such as the submission of technical and financial bids and an electronic reverse auction. Power Grid Corporation of India Limited emerged as the successful bidder with the lowest transmission charges of ₹932.07 million, which were significantly lower than the estimated charges of ₹1,306.20 million.
The bidding process followed the guidelines issued by the Ministry of Power under Section 63 of the Electricity Act, 2003. It ensured fair competition and adherence to market norms. The Bid Evaluation Committee certified the process, confirming that it was conducted transparently and that the discovered charges were acceptable.
The approved transmission system will facilitate the efficient evacuation of renewable energy from Khavda, contributing to India’s renewable energy targets. The system’s charges will be shared among inter-state transmission customers as per the regulations. This project underscores India’s commitment to developing infrastructure to support its growing renewable energy sector.
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