The Central Electricity Regulatory Commission (CERC) has officially granted an inter-State transmission licence to KPS III HVDC Transmission Limited for the development of a major transmission infrastructure project aimed at evacuating renewable energy from the Khavda region of Gujarat. The project falls under Phase-V (8 GW): Part C and will be implemented on a Build, Own, Operate, and Transfer (BOOT) basis.
The transmission project is considered a crucial step in strengthening India’s renewable energy infrastructure and supporting the evacuation of large-scale green power from Gujarat’s renewable energy zones. The bidding process for the project was conducted by PFC Consulting Limited, which acted as the Bid Process Coordinator. After the completion of the competitive bidding process, Adani Energy Solutions Limited emerged as the successful bidder by quoting the lowest annual transmission charges of Rs. 23,917.69 million per annum.
Following the selection process, Adani Energy Solutions Limited, along with KPS III HVDC Transmission Limited, jointly approached the Commission under the provisions of the Electricity Act, 2003, requesting the grant of the transmission licence for the project.
The transmission system includes several advanced technical components designed for large-scale renewable power evacuation. The project will involve the establishment of a 2500 MW, ±500 kV KPS3 High Voltage Direct Current (HVDC) Voltage Source Converter (VSC) terminal station. A corresponding 2500 MW, ±500 kV South Olpad HVDC terminal station will also be developed. These terminal stations will be connected through a ±500 kV HVDC Bipole transmission line, along with a dedicated metallic return system for transferring the entire 2500 MW of renewable energy power.
According to the details submitted before the Commission, the HVDC system will feature modern operational capabilities such as 100 percent power reversal, black start functionality, automatic grid restoration, and dynamic reactive power support. The overall implementation schedule for the project has been fixed at 48 months from the date of transfer of the Special Purpose Vehicle (SPV).
Before approving the licence, the Commission issued a public notice on May 13, 2026, through digital newspaper publications seeking suggestions, feedback, or objections from stakeholders and the public. During the hearing conducted on May 19, 2026, the petitioner informed the Commission that no objections had been received against the proposal. The Central Transmission Utility of India Limited also supported the grant of the licence.
The CERC bench, headed by Jishnu Barua along with members Ramesh Babu V., Harish Dudani, and Ravinder Singh Dhillon, approved the petition after confirming that all regulatory conditions had been fulfilled.
The transmission licence will remain valid for 25 years unless revoked earlier. Under the licence conditions, KPS III HVDC Transmission Limited cannot engage in electricity trading activities and must provide non-discriminatory open access to its transmission network. The company has also been directed to award EPC contracts strictly through a transparent competitive bidding process, while the project execution will be monitored by both the Central Transmission Utility of India Limited and the Central Electricity Authority to ensure timely completion and adherence to technical standards.
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