The date for opening of technical bids for the mega Khavda (Phase V, Part A) ISTS scheme has been extended once again, and is now scheduled for July 12, 2024.
Bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) has announced that the technical bids for the mega Khavda (Phase V, Part A) interstate transmission scheme will be opened on July 12, 2024, which will also be the last date for submission of technical and price bids.
By current thinking, the initial price bids will be opened on July 23, 2024 and the e-reverse auction of shortlisted bidders will be conducted on July 24, 2024.
The ISTS scheme under discussion is officially 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”.
The scheme is housed under a project SPV “Khavda V-A Power Transmission Ltd.” Incorporated on October 10, 2023 as a wholly-owned subsidiary of RECPDCL, this SPV will be transferred to the successful developer to be selected under the tariff-based competitive bidding (TBCB) mechanism.
When bidding started for this scheme, the initial price bids were to be opened on February 5, 2024 and this date has been postponed on at least fourteen occasions, to the present July 23, 2024.
Mega scheme
The project assumes significance as it is by far the single largest ISTS-TBCB scheme till date, with a capital outlay of Rs.24,819 crore, as estimated by National Committee on Transmission (NCT). The scheme will also see extensive deployment of HVDC-based infrastructure, using LCC (line-commutated converter) technology. The major elements are two HVDC terminal stations – KPS2 (Gujarat) and Nagpur (Maharashtra) – each of 6,000 MW, ±800kV. The two will be connected by a ±800kV bipole line running around 1,200 km. There are several other associated elements apart from these three core components.
The delay
According to reliable sources, the prolongation of the bidding process has been the result of several factors related to HVDC technology. After several discussions with potential developers and technology suppliers, key amendments were made to the bid documents, especially with respect to the HVDC dimension. For instance, the original bid documents suggested that bidders should take efforts to increase the minimum local content in HVDC systems. This clause was subsequently dispensed with. Revisions were also made to the percentage of quoted transmission charges on commissioning of HVDC-related elements.
HVDC in TBCB
While “Khavda V-A Power Transmission Ltd” is the biggest ISTS-TBCB project involving HVDC technology, it is not the only one. At least two others schemes housed under “Rajasthan Part I Power Transmission Ltd” and “KPS III HVDC Transmission Ltd” will see the development of HVDC technology-based power transmission infrastructure for renewable energy evacuation. Incidentally, akin to Khavda V-A, the bid opening for the Rajasthan Part I project also saw multiple extensions in bid submission date. However, as per the latest status available, three bidders had technically qualified for submission of price bids as of May 27, 2024, but there has been no officially released information thereafter, As far as KPS III goes, the bidding process has yet to begin.
Featured photograph (source: Hitachi Energy) is for representation only
