Adani Energy Solutions Ltd (AESL), on January 20, 2025, formally acquired “Rajasthan Part I Power Transmission Ltd” from bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL). This is the second HVDC transmission project to be ever awarded under the tariff-based competitive bidding (TBCB) route, and the first such awarded to a private sector entity.
AESL emerged as the winning bidder under the TBCB modality quoting annual transmission charge (tariff) of Rs.35,570 million, getting the better of three other contenders – Power Grid Corporation of India Ltd (PGCIL), Sterlite Power and IndiGrid.
AESL will develop this project under the build, own, operate & transfer (BOOT) model. Estimated to cost Rs.22,700 crore, this project entails setting up of two HVDC terminal stations of 6,000 MW each – at Bhadla (Rajasthan) and Fatehpur (Uttar Pradesh). Connecting these two terminals will be a ±800kV HVDC line (Hexa Lapwing) running some 955 km. The envisaged implementation timeframe is 54 months from the date of SPV transfer, which works out to around July 20, 2029.
The ISTS-TBCB scheme is formally referred to as “Transmission system for evacuation of power from REZ in Rajasthan (20 GW) under Phase III (Part I)”
While this is the second-ever HVDC project to be awarded under the TBCB mode, it is the first HVDC project to be awarded to a private sector developer under the said modality. The first HVDC project, awarded under the TBCB route was Khavda V-A, awarded to Power Grid Corporation of India Ltd, in November 2024.
The SPV was handed over by T.S.C. Bosh, CEO, RECPDCL to Sanjay Arvind Johari, Chief Business Development Officer, Adani Energy Solutions Ltd in the presence of Senior Officials of RECPDCL, Adani Energy Solutions Limited and Central Transmission Utility of India Ltd. (See photograph)
Second-highest tariff
As mentioned earlier, AESL will earn annual transmission charges (tariff) of Rs.35,570.00 million from this project. This is the second-highest tariff seen in TBCB projects, only after The Rs.40,828.67 million seen in the case of PGCIL’s Khavda V-A project.
With this new win, AESL has formally acquired five ISTS-TBCB schemes in FY25 so far, after Khavda IV A Power Transmission Ltd (August 30, 2024); Jamnagar Transmission Ltd (October 14, 2024); Navinal Transmission Ltd (October 14, 2024) and Pune-III Transmission Ltd (November 19, 2024).
Rise in tariff share
According to estimates made by T&D India, a total of 33 ISTS-TBCB schemes have been formally transferred to winning bidders in FY25 so far (April 1, 2024 to January 20, 2025). Thanks to the Rajasthan Part I project, AESL’s share in terms of tariff has risen to around 32 per cent. PGCIL leads with a share of around 50 per cent. (It may be noted that tariffs of two out of the 33 ISTS-TBCB schemes are not yet available. The tariff share has been worked out on the basis of the remaining 31 schemes.)
Enabling India’s decarbonization journey
In a media release dated January 21, 2024, AESL said that it is the only player in the private sector to own an HVDC asset, which is preferred for long-distance power transmission. The Bhadla-Fatehpur project is AESL’s third HVDC project after the delivered Mundra – Mahendragarh Project and the under implementation Aarey-Kudus Project (being done by subsidiary Adani Electricity Mumbai Ltd).
“By enabling efficient evacuation of renewable energy from some of the most inhospitable regions of the country and connecting them to the national grid, AESL is playing its role in India’s decarbonization journey. We will be deploying latest technology and practices to deliver the project in time and with minimal environmental impact,” noted Kandarp Patel, CEO, AESL.
