Three players are in the fray for a major interstate transmission system (ISTS) scheme in Gujarat involving HVDC technology, for which developer selection is taking place through the tariff-based competitive bidding (TBCB) mode.
It is reliably learnt that Power Grid Corporation of India Ltd (PGCIL), Adani Energy Solutions Ltd (AESL) and Sterlite Power have technically qualified for this mega ISTS scheme housed under “Khavda V-A Power Transmission Ltd”
Bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) will now proceed to open the initial price bids of these three developers, a process that will potentially followed by the e-reverse auction (e-RA) process. The final developer will be chosen based on the “final” bids, which means the price bids emerging at the end of the e-RA stage.
Termed as “Transmission system for evacuation of power from potential renewable energy zone in Khavda area of Gujarat under Phase-V (8 GW): Part A,” this ISTS scheme is estimated to cost around Rs.24,819 crore as per cost estimates made by National Committee on Transmission (NCT) in June 2023. As per T&D India estimates, this scheme is by far the most capital-intensive ISTS-TBCB scheme, in recent history at least.
RECPDCL initiated the bidding process of this mega scheme in December 2023, and as per original schedule, initial bids were to be opened in early February 2024.
The Khavda V-A scheme is a massive scheme straddling Gujarat and Maharashtra, envisaging the use of HVDC (Line commutated converter or LCC) technology.
The project will mainly involve setting up of:
- A 6000 MW, ±800 kV KPS2 (HVDC) [LCC] terminal station (4×1500 MW) in Gujarat
- A 6000 MW, ±800 kV Nagpur (HVDC) [LCC] terminal station (4×1500 MW) in Maharashtra
- ±800 kV HVDC bipole line (Hexa lapwing) between KPS2 (HVDC) and Nagpur (HVDC), running around 1,200 km
Relaxation in MLC
Following representations made by developers and HVDC equipment suppliers, the Union power ministry agreed to reduce the minimum local content (MLC) in the aforementioned KPS2 and Nagpur HVDC terminal stations to 25 per cent from the originally envisaged 60 per cent. Incidentally, this relaxation, which was provided as a one-time measure in July 2024, is also applicable to the Leh-Kaithal HVDC transmission system that PGCIL is building under the regulated tariff mechanism (RTM) route.
HVDC in Rajasthan
It may be recalled that a major ISTS-TBCB project involving HVDC technology is also coming up in Rajasthan under “Rajasthan Part I Power Transmission Ltd.” As reported by T&D India on August 19, 2024, bid process coordinator RECPDCL terminated the tendering process in which PGCIL had emerged L1 bidder, and is now seeking fresh bids. By current timelines, technical bids are scheduled to be opened on October 1, 2024.
Khavda Phase V
The Khavda V-A scheme under discussion is part of an overall scheme (“Phase V”) that seeks to evacuate 8 GW of RE power from Khavda renewable energy zones in Gujarat. Phase-V is designed to have four components – Part A, Part A1, Part B and Part C. Of these, Part A has been discussed in this story while Part A1 is a small Rs.21-crore component that has been assigned to PGCIL under the RTM route. Part B is still under evaluation and Part C, estimated to cost Rs.12,000 crore and envisaging HVDC technology, is in the early stages of bidding by bid process coordinator PFC Consulting Ltd.
Featured photograph (source: Hitachi Energy) is for representation only
