CERC Moves Ahead On Transmission License For 2,500 MW Khavda Renewable Energy Evacuation Project In Gujarat

The Central Electricity Regulatory Commission (CERC) has issued an order on the application for granting a transmission license to KPS III HVDC Transmission Limited for a major renewable energy evacuation project in Gujarat. The project, named “Transmission System for Evacuation of Power from potential renewable energy zone in Khavda area of Gujarat under Phase-V (8GW): Part C,” is aimed at supporting the transmission of 2,500 MW of renewable energy from the Khavda region.

The project includes the development of HVDC terminal stations at KPS3 and South Olpad, along with a ±500 kV HVDC Bipole transmission line connecting the two stations. The transmission system is considered an important part of India’s renewable energy expansion plans and is expected to strengthen the grid infrastructure required for large-scale clean energy integration.

The bidding process for the project was conducted by PFC Consulting Limited, which acted as the bid process coordinator. After the completion of the tariff-based competitive bidding process, Adani Energy Solutions Limited emerged as the successful bidder by quoting the lowest annual transmission charges of around ₹23,917.69 million. Following the selection, Adani Energy Solutions acquired full ownership of the Special Purpose Vehicle, KPS III HVDC Transmission Limited, and submitted a contract performance guarantee worth ₹553.73 crore to Central Transmission Utility of India Limited (CTUIL).

During the proceedings, objections were raised by local stakeholders, including Sh. Rakesh Arvindbhai Patel and others. The objectors argued that the public notice issued for the project was vague because it did not include exact revenue survey numbers or detailed route maps of the transmission lines. According to them, affected landowners would not be able to properly understand whether their land was involved without such details. They also referred to court judgments that stressed the importance of providing specific land information in public notices.

In response to these concerns, the Commission explained that there is a clear difference between the process of granting a transmission license and the process related to land approvals. CERC stated that under the 2024 Transmission Licence Regulations, only a general description of the project area is required at the license application stage. Detailed route alignment and land survey information are handled separately under Section 164 of the Electricity Act by the Central Electricity Authority. The Commission also noted that the petitioner had already started this separate process by issuing another public notice on February 12, 2026, specifically for land-related matters.

CTUIL supported the grant of the transmission license, stating that the project is important for achieving India’s target of 500 GW of non-fossil fuel-based power capacity by 2030. The Khavda Renewable Energy Park itself is expected to have a generation potential of around 32.7 GW. CERC observed that the scheduled commissioning date of December 12, 2029, matches the expected development of renewable energy generation in the region. The Commission has now directed the publication of another public notice inviting final suggestions or objections by May 18, 2026, while the next hearing in the matter is scheduled for May 19, 2026.