Rs 64,000-crore renewable energy transmission projects on the anvil

The last largest tranche of power transmission projects offered to the private sector was in 2015 when eight projects totalling Rs 50,000 were tendered

A record Rs 64,000 crore worth of six power transmission projects for connecting green energy installations have been approved by the National Committee on Transmission (NCT) and are likely to be awarded this year through the bidding route.

The Centre is expecting high interest from the private sector for these large-scale transmission projects that will connect some of the mega renewable energy zones (REZs) in the country with the national grid.

The NCT, under the aegis of the Ministry of Power, in its recent meeting approved these power transmission projects connecting renewable energy zones in Gujarat, Rajasthan, and Maharashtra, and hydropower projects in Himachal Pradesh with the national grid.
 

Of these, the upcoming biggest REZ in the country of 30 gigawatt (Gw) — Khavda RE Park, in Gujarat — has received the biggest tranche. 
 

In its 14th meeting held on June 9, the NCT approved these projects, which will be offered through the “tariff-based competitive bidding (TBCB)” to evince interest from the private sector.

Leading sector players, including Adani Transmission, Sterlite Power, Essel Infra, Kalptaru Power, and Tata Power, are expected to participate in the tender process, industry executives said. Senior officials indicated project tendering would commence this financial year. After the NCT’s approval, a gazette notification by the power ministry, followed by a project-wise “request for proposal” by the two tendering agencies PFC and REC, would kick start the process.

The NCT, while approving the transmission projects for the two phases of Khavda RE Park, said the 30 Gw capacity of hybrid renewable energy generation (solar and wind) is expected to play a major role in fulfilling India’s vision of 500 Gw of non-fossil power generation capacity by 2030.

The transmission system for evacuation of up to 15Gw power from Khavda RE Park is already under process in three phases. While the cost of one REZ project of 7Gw is Rs 18,598 crore, the approximate cost of the other 8 Gw project is Rs 23,110 crore.

“Considering the rapid pace of applications being received in the Khavda area and the communication from Gujarat Power Corporation vide e-mail dated 23.12.2022 to consider 30 Gw potential capacity for power evacuation system of Khavda RE Park, a transmission system for balance 15 Gw Khavda REZ has been planned, so that there is no mismatch between RE generation and transmission,” said the minutes of the meeting. Business Standard has reviewed a copy of the minutes.

The latest largest tranche of power transmission projects offered to the private sector was way back in 2015 when eight projects worth a total of Rs 50,000 crore were tendered, most of them aimed at green energy zones.

 Another significant RE zone that has received a transmission system is the Jaisalmer/Barmer Complex of the Rajasthan Renewable Energy Zones (REZs) with an RE generation capacity of 7.5 Gw. The transmission project would have two tranches – one covering the northern region (Rs 13,865 crore) and the other for the western region (Rs 5,627 crore), according to the project specification submitted to the NCT.

 The renewable energy generation projections of these zones and their respective transmission planning are based on the report prepared by the Ministry of New & Renewable Energy in 2022 -- “Transmission System for Integration of over 500 GW RE Capacity by 2030”. The plan, which entails connecting mega solar parks and wind power zones with the national grid, is looking at an investment of Rs 2.44 trillion in the transmission sector.

The three other projects pertain to connecting two hydropower projects in Himachal Pradesh and augmenting the renewable energy and peak power supply transmission capacity in Maharashtra and Telangana, respectively.

‘Green’ power

• National Committee on Transmission has cleared six projects that would connect renewable energy zones in Gujarat, Rajasthan and Maharashtra with national grid
• Upcoming renewable energy zone at Khavda (Gujarat), largest in the country, has received the biggest tranche at over Rs. 41,000 crore
• The projects to be offered through ‘tariff-based competitive bidding’
• Leading players like Adani Transmission, Sterlite Power, Essel Infra, Kalpataru Power, and Tata Power are expected to participate in the bidding