Power Grid Corporation of India Ltd (PGCIL) continued its winning spree in the ISTS-TBCB space, this time receiving the letter of intent for a scheme in the Khavda area in Gujarat.
In a brief stock exchange filing, PGCIL said that it has been declared as the successful bidder under tariff based competitive bidding to establish interstate transmission system (ISTS) for “Provision of Dynamic Reactive Compensation at Khavda Pooling Station 1 (KPS1) and Khavda Pooling Station 3 (KPS3)” on build, own, operate and transfer (BOOT) basis.
The letter of intent (LoI) has been received by PGCIL on September 23, 2024, the filing noted.
The project comprises installation of STATCOMs at Khavda Pooling Station 1 (KPS1) and Khavda Pooling Station 3 (KPS3) along with associated bays extension work in of Gujarat, the filing added.
According to information available with T&D India, PGCIL was in the final race for this project with the only other contender – Adani Energy Solutions Ltd (AESL). These two bidders were qualified for opening of initial price bids by bid process coordinator PFC Consulting Ltd (PFCCL) in late-June 2024.
With a project outlay of around Rs.501.09 crore as estimated by National Committee on Transmission (NCT), this scheme has a gestation period of 24 months.
The project will be housed under a project SPV “Khavda PS1 and 3 Transmission Ltd” that was incorporated by PFCCL on December 22, 2023 as its wholly-owned subsidiary. This SPV will be transferred to PGCIL in due course.
The scheme involves the setting up of one STATCOM along with a 400kV GIS line bay, at three locations – Bus section 1 of Khavda Pooling Station 1 (KPS1), bus section 1 of KPS2 and bus section 1 of KPS3.
The STATCOM will be of ±300 MVAr equipped with 1×125 MVAr MSC (mechanically switched capacitors) and 2×125 MVAr MSR (mechanically switched reactors).
Project Rationale
This ISTS scheme basically aims to stabilize high voltage variations in the grid. According to a report by Central Transmission Utility of India Ltd (CTUIL), the renewable energy (RE) potential in the western region interstate transmission system is concentrated in few pockets like Khavda, Bhuj and Dwarka in Gujarat. Due to such intermittent RE injections, there is bound to be very low to very high loading, during different times of the day, on the evacuating long-distance EHV lines. It was therefore found prudent to provide STATCOMs of suitable ratings at the injection end, which is KPS1, KPS2 and KPS3. Similarly, such STATCOMs are also likely to be provided, through other ISTS schemes, at the drawl end which is Navsari (new) and Boisar-II substations.
Fourth LoI by PGCIL
“Khavda PS1 and 3 Transmission Ltd” represents the fourth letter of intent received by PGCIL for an ISTS-TBCB project in September 2024 so far. The preceding three corresponded to ISTS schemes housed under Jam Khambhaliya Transmission Ltd, Rajasthan IV H1 Power Transmission Ltd and South Olpad Transmission Ltd. These four cases are over and above the seven schemes, as per T&D India estimates, that PGCIL has won in FY25 so far where the project SPV has been formally acquired by PGCIL from the respective bid process coordinator.
Featured photograph (source: Hitachi Energy) is for representation only
