Central Electricity Regulatory Commission (CERC) has approved and adopted the transmission charges associated with the Koppal-Narendra power transmission project.
In a recent order, CERC said that it has approved and adopted the transmission chargers, based on certification of the Bid Evaluation Committee (BEC).
The project was awarded to ReNew Transmission Ventures Pvt Ltd, a subsidiary of ReNew Power, after it quoted an annualized levelized tariff of Rs.61.125 crore per year.
The CERC order stated that sharing of transmission charges by the long-term transmission customers (LLTC) shall be governed by the provisions of “Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and Losses) Regulations, 2020,” as amended from time to time.
The project aims to set up evacuation infrastructure for 2.5 GW worth of wind energy farms coming up at Koppal in Karnataka. (See more details)
The Koppal transmission project, to be developed by project SPV “Koppal Narendra Transmission Ltd,” was awarded to ReNew Power, under the tariff-based competitive bidding (TBCB) modality.
Bidding process
At the RfQ stage, the following seven bidders qualified the next (RfP) stage:
- Torrent Power
- ReNew Power Transmission Ventures Pvt Ltd
- Power Grid Corporation of India Ltd
- Sterlite Grid 11 Ltd
- Adani Transmission Ltd
- Kalpataru Power Transmission Ltd
- L&T Infrastructure Development Projects Ltd
At the RfP stage, only five bidders were in the fray with Kalpataru and L&T Infrastructure did not submitting their financial bids.
Based on the initial financial bids submitted by the five bidders, Adani Transmission Ltd emerged L-1 with a bid of Rs.72.50 crore (annualized levelized tariff).
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At the subsequent e-reverse auction (e-RA), which according to information available, saw as many as 61 rounds of bidding, ReNew Power Transmission Ventures Pvt Ltd emerged L-1 with a winning quote of Rs.61.125 crore. It can therefore be seen that the e-RA resulted in a 15.7 per cent reduction in tariff, as compared to the original L-1 bid.
Following the standard procedure, ReNew Power Transmission Ventures Pvt Ltd will now proceed to apply for transmission licence to CERC, subject to other intervening formalities. The project SPV was transferred to the successful bidder on December 13, 2021.
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