CERC Grants License For POWERGRID Kurnool-IV Transmission Project To Integrate 4.5 GW Renewable Energy

The Central Electricity Regulatory Commission has granted approval for a transmission license to POWERGRID Kurnool-IV Transmission Limited, marking an important step in strengthening India’s renewable energy infrastructure. The order was issued on September 13, 2025, and allows the company to take forward the project titled “Transmission System for Integration of Kurnool-IV REZ – Phase-I (for 4.5 GW).” The project will be developed on a Build, Own, Operate, and Transfer basis, with the license valid for a period of 25 years unless revoked earlier.

The approval follows a transparent competitive bidding process conducted by REC Power Development and Consultancy Limited. POWERGRID Corporation of India Limited emerged as the successful bidder by offering the lowest annual transmission charges of around Rs. 6,451.06 million. The licensed entity, originally registered as Kurnool-IV Transmission Limited, had undergone a name change, and this was duly noted and recognized by the Commission while granting the license.

The project has been designed to facilitate large-scale renewable energy integration into the national grid. A key component will be the setting up of a pooling station near Kurnool in Andhra Pradesh. This pooling station will include multiple transformers and bus reactors to manage the power load effectively. In addition, 765 kV double circuit transmission lines will be constructed to connect the station with existing substations at Bidar and Kurnool-III. To further enhance grid stability, the plan also includes a ±300 MVAr STATCOM installation. The scheduled commercial operation date for the project has been set for March 24, 2027.

During the review process, the Commission examined the adequacy of connectivity applications related to the proposed system. Initially, there were concerns about the lower number of applications compared to the planned capacity. However, the Central Transmission Utility of India Limited clarified that the transmission system had been planned in phases. While the initial phase would be capable of integrating about 2,380 MW, including 1,480 MW at the 220 kV level and 900 MW at the 400 kV level, the overall infrastructure was designed to handle up to 7.5 GW in future phases. The Commission accepted this phased approach, noting that there were sufficient connectivity applications to support the current capacity being developed.

The project was also opened to public scrutiny through a notice, but no objections were received, indicating broad acceptance of the plan. The Commission laid down specific conditions for the license, requiring the licensee to comply with all regulatory provisions and provide non-discriminatory open access to the transmission system. The licensee is also obligated to pay all applicable fees and charges. To ensure timely execution, the Central Transmission Utility and the Central Electricity Authority will closely monitor the progress of the project against the scheduled timelines.

By granting this license, the Commission has cleared the way for a major renewable energy integration initiative. The project is expected to play a crucial role in evacuating renewable power from the Kurnool Renewable Energy Zone and delivering it reliably to the grid. With its large capacity, phased planning, and emphasis on grid stability, the Kurnool-IV transmission project represents a significant milestone in India’s journey toward expanding renewable energy and meeting its long-term clean energy goals.