The Central Electricity Regulatory Commission (CERC) has approved the transmission charges for a major renewable energy transmission 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 (8 GW): Part C,” will support the evacuation and transmission of renewable power generated in the Khavda region, which is emerging as one of India’s key clean energy hubs.
The project has been awarded to Adani Energy Solutions Limited (AESL) through a tariff-based competitive bidding process. The development will be carried out through its subsidiary, KPS III HVDC Transmission Limited, on a Build, Own, Operate and Transfer (BOOT) basis. The petition seeking approval of the transmission charges was filed before the Commission under Section 63 of the Electricity Act, 2003, which allows tariff adoption if discovered through a transparent bidding process in line with government guidelines.
The bidding process for the project was coordinated by PFC Consulting Limited, acting as the Bid Process Coordinator. Four companies participated in the bidding process, including Power Grid Corporation of India Limited, Enerica Infra 1 Private Limited, Adani Energy Solutions Limited, and Resonia Limited. After 49 rounds of e-reverse auction, AESL emerged as the successful bidder by quoting an annual transmission charge of Rs. 23,917.69 million.
During the hearings, the discovered tariff became a major point of discussion because it was higher than the estimated levelized tariff calculated by the Commission. The Bid Evaluation Committee (BEC) examined the matter and referred it to a Cost Committee for detailed analysis. The review found that the higher project cost was mainly due to the use of advanced Voltage Source Converter (VSC) technology, which is being implemented for the first time in India under the Tariff-Based Competitive Bidding (TBCB) route.
According to the committee, the advanced technology involves higher technical risks and additional expenses. The project cost was also impacted by inflation, import duties, and special geographical requirements in the Khavda region, including the need for pile foundations. Based on these factors, the committee concluded that the quoted tariff was reasonable and justified.
The scope of the project includes the establishment of terminal stations at KPS3 and South Olpad, along with a ±500 kV HVDC Bipole transmission line. The project is expected to be completed within 48 months from the date of transfer of the Special Purpose Vehicle (SPV) to the successful bidder. The expected commissioning date has been set as December 12, 2029.
In its order dated May 12, 2026, the CERC stated that the bidding process was transparent and conducted according to the prescribed guidelines. The Commission officially adopted the annual transmission charges for the project. The approved charges will remain applicable for the duration mentioned in the Transmission Service Agreement, and their recovery will be governed by the CERC’s 2020 regulations related to the sharing of inter-state transmission charges and losses.
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