CERC Approves Transmission Charges For 2,500 MW Renewable Energy Project In Madhya Pradesh

In a decisive move to strengthen India’s renewable energy infrastructure, the Central Electricity Regulatory Commission (CERC) has issued an order approving the transmission charges for a significant interstate transmission project in Madhya Pradesh. The project, titled “Transmission system for Evacuation of Power from RE Projects in Rajgarh (1500 MW) SEZ Phase III and Neemuch (1000 MW) SEZ Phase II,” is designed to facilitate the smooth transfer of clean energy from these Special Economic Zones (SEZs) to the national grid, thereby supporting the country’s renewable energy transition.

Rajgarh Neemuch Power Transmission Limited has emerged as the successful bidder and will serve as the Transmission Service Provider (TSP) for this project. The company, initially established as a subsidiary of REC Power Development and Consultancy Limited (RECPDCL), was acquired by the winning bidder to execute the project on a Build, Own, Operate, and Transfer (BOOT) basis. The selection process followed a rigorous and transparent competitive bidding procedure, ensuring that the project is implemented by a capable and efficient operator.

The commission, following the bidding guidelines, has approved levelized transmission charges of INR 3,670.73 million for the project. These charges were determined through an electronic reverse auction that included participation from four major bidders and extended over 33 competitive rounds. The total estimated cost of the project is approximately INR 39,599.80 million, reflecting the scale and strategic importance of this infrastructure.

The project includes several critical technical elements aimed at enhancing grid capacity and ensuring reliable power transfer. Key components involve the augmentation of substations, including the creation of new 220 kV bus sections and the enhancement of transformer capacity at Pachora and Neemuch substations with multiple 500 MVA ICTs. The transmission network will also feature high-capacity 400 kV double-circuit lines connecting Pachora to Rajgarh, Neemuch to Pachora, and Pachora to Handiya, which will help evacuate power efficiently. Additionally, the installation of several 125 MVAr bus reactors is planned to maintain voltage stability across the network, which is crucial for uninterrupted power flow from renewable sources.

According to the Transmission Service Agreement (TSA), the project is expected to adhere to a strict timeline, with a scheduled commercial operation date (SCOD) set at 24 months from the effective date, which is September 29, 2027. The sharing of transmission charges among beneficiaries will be governed by the CERC (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020, ensuring a fair and transparent cost allocation mechanism.

This approval by CERC represents a significant milestone in India’s renewable energy journey. By enabling large-scale power generated in Madhya Pradesh’s solar and wind hubs to be integrated into the interstate transmission system, the project will enhance energy security and provide cost-effective clean power to consumers. The tariff discovery through an open competitive process also demonstrates the commission’s commitment to fostering private investment in the country’s energy sector while promoting efficiency, transparency, and affordability.

With the project set to be operational by late 2027, it is expected to play a pivotal role in supporting India’s ambitious renewable energy targets and further strengthening the national grid to accommodate the growing influx of clean energy from solar and wind projects across the region.