CERC Reviews Khavda IV C Transmission Project To Bolster India’s Green Energy Goals

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Representational image. Credit: Canva

Khavda IV C Power Transmission Limited has filed a petition under the Electricity Act, 2003, requesting a transmission license for the “Transmission System for Evacuation of Power from Renewable Energy Zones in the Khavda area of Gujarat under Phase IV (7 GW): Part C.” This initiative is part of India’s renewable energy expansion to achieve the government’s target of 500 GW of non-fossil capacity by 2030, with the Khavda area identified for significant renewable energy potential.

The transmission project, planned under a Build, Own, Operate, and Transfer (BOOT) model, involves advanced infrastructure, including a 765/400/220 kV GIS substation at Boisar-II, 765 kV and 400 kV transmission lines, switchable reactors, and STATCOM installations for enhanced grid stability. The project is expected to be completed within 24 months from August 30, 2024, with an operational deadline of August 30, 2026.

Sterlite Grid 38 Limited emerged as the successful bidder through a competitive process managed by REC Power Development and Consultancy Limited, the designated Bid Process Coordinator. Sterlite’s final bid quoted transmission charges of ₹13,148.08 million, making it the lowest among competitors. Following the acquisition of Khavda IV C Power Transmission Limited, Sterlite executed a Transmission Service Agreement (TSA) with the Central Transmission Utility of India Limited (CTUIL).

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The Central Electricity Regulatory Commission (CERC) acknowledged compliance with all procedural requirements and issued a directive to publish public notices inviting objections or suggestions regarding the grant of the license. The CTUIL also recommended approval, emphasizing the alignment of the project with India’s renewable energy goals. The initiative facilitates the integration of additional renewable energy capacity, enhancing grid infrastructure and supporting sustainable energy development.

The petitioner has committed to adhering to all technical and grid standards, ensuring the project is constructed with high-quality materials and engineering practices. Cost or time overruns, if any, will be addressed under the provisions of the TSA and relevant regulations.

The petition will be heard on December 26, 2024, with the CERC poised to make a final decision based on public feedback and compliance with statutory guidelines. This project is a critical step toward achieving India’s renewable energy ambitions and strengthening its transmission network to accommodate growing clean energy capacities.

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