Khavda IV C Power Transmission Limited filed a petition with the Central Electricity Regulatory Commission (CERC) under Section 63 of the Electricity Act, 2003, seeking the adoption of transmission charges for the implementation of a power transmission project. This project involves evacuating renewable energy from the Khavda area of Gujarat under Phase-IV, Part C, with a capacity of 7 GW. The initiative aims to establish an efficient transmission system on a Build, Own, Operate, and Transfer basis.
The bidding process for the project was coordinated by REC Power Development and Consultancy Limited (RECPDCL), which acted as the Bid Process Coordinator. The bidding followed the guidelines issued by the Ministry of Power under Section 63 of the Electricity Act. After a thorough evaluation, the bid process involved an international competitive framework, including an e-reverse auction that culminated in 54 rounds of bidding.
Three bidders participated in the process: Adani Energy Solutions Limited, Sterlite Grid 38 Limited, and Power Grid Corporation of India Limited. Sterlite Grid 38 Limited emerged as the successful bidder with the lowest annual transmission charges of ₹13,148.08 million. This tariff was 37.29% higher than the estimated charges as per prevailing Central Electricity Regulatory Commission norms. However, the Bid Evaluation Committee (BEC) justified the higher tariff by citing factors such as the urgency of the project, supply chain issues, commodity price volatility, and land acquisition challenges.
The transmission system will play a critical role in evacuating renewable energy from the Khavda Renewable Energy Park, which has a total potential of 30 GW. The planned transmission infrastructure is integral to the optimal utilization of the park, ensuring the timely evacuation of power to meet growing energy demands. The urgency of the project was further emphasized due to the interlinkages with other phases of the transmission schemes under development in the area.
Key elements of the project include establishing substations, high-voltage transmission lines, and advanced systems like STATCOM. These components are designed to address operational challenges and ensure the reliable transmission of power. The scope of work and the technical requirements were outlined in the Request for Proposal (RfP), which adhered to standard bidding documents.
Following the completion of the bidding process, the Letter of Intent was issued to Sterlite Grid 38 Limited, which subsequently acquired the project’s Special Purpose Vehicle (SPV) as required by the bid terms. The company provided the necessary guarantees and executed the required agreements within the stipulated timelines.
The CERC approved the adoption of the transmission charges, acknowledging that the process adhered to transparency and competitive bidding guidelines. The charges will be valid for the duration of the Transmission Service Agreement, with the sharing of costs governed by the CERC’s regulations on interstate transmission charges.
This project is expected to enhance the infrastructure for renewable energy in India, supporting the country’s transition towards sustainable energy solutions. By facilitating the evacuation of power from renewable energy zones, the initiative aligns with national goals for clean energy deployment and grid reliability.
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