The Central Electricity Regulatory Commission has approved annual transmission charges of Rs 23.92 billion for an interstate transmission system project designed to evacuate 8 GW of renewable energy from Khavda in Gujarat under Phase-V: Part C, MERCOM reported.
The project, awarded through a competitive bidding process, will be executed by Adani Energy Solutions, which emerged as the successful bidder by quoting the lowest annual transmission charges.
The sharing of these costs among designated users will follow the provisions of the CERC Sharing of Inter-State Transmission Charges and Losses Regulations, 2020.
The proposal was submitted jointly by Adani Energy Solutions and KPS III HVDC Transmission, seeking approval for both the tariff and its recovery under the applicable rules.
The Ministry of Power had earlier appointed PFC Consulting as the bid process coordinator for selecting the transmission service provider. The tender process began in July 2024, with Adani Energy Solutions winning the contract through an electronic reverse auction.
While reviewing the proposal, the Commission noted that the approved tariff is about 12 percent higher than standard estimates based on its norms. However, it accepted the explanation that the project involves advanced Voltage Source Converter technology, marking the first time such a system is being implemented in India through a competitive bidding route. The higher cost was partly linked to the risks associated with adopting this technology.
The regulator approved the transmission charges, subject to the grant of a transmission licence to KPS III HVDC Transmission, and confirmed that cost-sharing will be carried out as per existing regulations.
In a related development, CERC recently clarified that renewable energy developers will need to bear bilateral transmission charges for associated systems until their projects become operational.
The approval is expected to play a crucial role in enabling the smooth flow of renewable energy from Gujarat’s Khavda region to the national grid.
