Torrent Power is set to make its debut in the interstate transmission system (ISTS) development space, under the tariff-based competitive bidding (TBCB) route.
In a very recent stock exchange filing, Torrent Power said that bid process coordinator PFC Consulting Ltd (PFCCL), on February 27, 2024, issued the letter of intent to Torrent Power as selected bidder, following the TBCB process, for the ISTS project officially termed as “Transmission system for evacuation of power from RE projects in Solapur (1,500 mw) SEZ in Maharashtra.” [SEZ refers to solar energy zone]
According to information available from independent sources, Torrent Power won this project getting the better of three other contenders – Power Grid Corporation of India Ltd (PGCIL), Sterlite Power and India Grid Trust — that had qualified for opening of initial price bids. The Torrent Power communication said that it had quoted the winning bid of Rs.50 crore, as the annual transmission charges.
T&D India learns that the aforementioned ISTS project will be housed under a project special purpose vehicle “Solapur Transmission Ltd.” This project SPV was incorporated on December 14, 2023, as a wholly-owned subsidiary of PFCCL. As per the normal practice, PFCCL will soon initiate the transfer of ownership of “Solapur Transmission Ltd” to Torrent Power Ltd, signifying Torrent Power’s formal acquisition of the project.
According to information available with T&D India, though Torrent Power has a power transmission portfolio that is largely associated with evacuation systems of its own power generation assets, this is the first instance of Torrent Power winning a power transmission project under the TBCB route.
The ISTS project will be developed under the build, own, operate & transfer (BOOT) model with a concession period of 35 years, inclusive of an estimated 24 months for construction.
Among other elements, the project involves setting up of a new Solapur Pooling Station (PS) equipped with 400/220kV, 4×500 MVA ICTs and 2×125 MVAr, 420kV bus reactors. Torrent Power will also build a 400kV double-circuit line running around 44 km from the existing Solapur substation owned by PGCIL to the upcoming Solapur PS. The project will also entail two 400kV line bays at PGCIL’s Solapur substation for termination of the aforementioned transmission line.
Project Rationale
The “Solapur Transmission Ltd” project, estimated to cost around Rs.470 crore, aims to facilitate RE evacuation of 1.5 GW from upcoming solar power plants in Solapur. A total of 2.5 GW of RE potential has been estimated at Solapur, out of which 1 GW will be directly injected into PGCIL’s existing Solapur substation. The project under discussion will help evacuation of the remaining 1.5 GW by setting up a new pooling station at Solapur and connecting it with PGCIL’s existing Solapur substation. (More details)
Also read: Torrent Power Records Lower Distribution Losses In 9MFY24
Featured photograph is for representation only.
