PFCCL issues RfP for synchronous condenser project at Fatehgarh-II

PFC Consulting Limited (PFCCL), acting as Bid Process Coordinator, has issued a Request for Proposal (RfP) to select a Transmission Service Provider (TSP) for installation of two synchronous condenser units at the 765/400/220kV Fatehgarh-II Pooling Station in Rajasthan. The project is intended to strengthen grid stability in a region with rapid renewable energy integration.

The selected bidder will develop the interstate transmission system on a build, own, operate and transfer (BOOT) basis, with completion scheduled within 30 months from the effective date.

Each synchronous condenser must provide dynamic reactive power support of +300 MVAr to -200 MVAr and a minimum short-circuit contribution of 1200 MVA at the point of common coupling. The scope includes two 400 kV bays at the Fatehgarh-II substation, with space provided free of cost by Power Grid Corporation of India. The units are required to improve grid inertia, voltage stability and short-circuit strength, operate within ±10% voltage variation and frequency range of 47.5 Hz to 52 Hz, and withstand rate of change of frequency up to 4 Hz per second.

The single-stage, two-envelope bidding process will be conducted on the MSTC electronic platform. Technical bids are due by April 17, 2026, followed by financial bids comprising an initial offer round and an electronic reverse auction, where the lowest transmission charges will determine the successful bidder. The bid bond is set at Rs 22.80 crore, while the selected bidder must submit a contract performance guarantee of Rs 57 crore within ten days of receiving the Letter of Intent. Transmission charges will remain fixed for the 35-year Transmission Service Agreement (TSA) term.

Eligibility criteria include technical experience in infrastructure projects with aggregate capital expenditure of at least Rs 1,140 crore, including individual projects of at least Rs 228 crore, or construction experience with aggregate payments of Rs 1,140 crore from completed projects. The minimum net worth requirement is Rs 456 crore.

The scheme was developed following recommendations of the 71st Northern Regional Power Committee (NRPC) meeting in January 2024, which identified the requirement for synchronous condensers to provide inertial support in renewable-rich areas. A committee comprising the Central Electricity Authority (CEA), NRPC, Northern Regional Load Despatch Centre (NRLDC), Central Transmission Utility (CTU) and State Transmission Utility (STU) analysed system needs and identified suitable locations based on short-circuit ratio, proximity to high-voltage direct current (HVDC) stations and dynamic compensation requirements. The 36th CMETS-NR meeting noted sustained oscillations at Fatehgarh-II, reinforcing the requirement for installation. The scheme was subsequently approved through technical and regional committee processes before MoP notification in November 2025.

The selected bidder will acquire 100% equity of the special purpose vehicle (SPV) to be incorporated for the project at an acquisition price to be communicated 20 days before the bid deadline. The SPV will handle ownership, financing, development, engineering, procurement, construction, commissioning, operation and maintenance.

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